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Netscape: Gates is beatable
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March 20, 1997: 9:37 p.m. ET
Netscape chief says Microsoft Corp. has weaknesses
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MOUNTAIN VIEW, Calif. (CNNfn) -- Netscape Communications Corp. is one of the most successful startup companies in history.
The Mountain View, Calif.-based company unveiled its Netscape Navigator browser just in time to catch the World Wide Web's explosion-- helping the firm launch one of the best received initial public offerings ever on Wall Street.
But giant Microsoft Corp. has vowed to bury the Netscape Navigator with the rival Microsoft Explorer browser.
Can Netscape meet the challenge?
Jim Barksdale, Netscape president and chief executive officer of Netscape Communications Corp., sat down recently with CNNfn's Beverly Schuch to discuss the company's future.
Here are excerpts of their discussion:
SCHUCH: The (browser) war really left us with two opponents: Microsoft and Netscape. Who won?
BARKSDALE: I think clearly, if it's a win/lose thing, as of today, I think we certainly won. The recent articles by Forrester Research and others say how disappointing it is that Microsoft hasn't gained more market share. We've lost just about 5 to 7 points of market share over almost a third of a year since (Microsoft launched their) new product.
SCHUCH: Netscape's Navigator right now commands a better than 3-to-1 lead over Microsoft's Internet Explorer. This is not a friendly rivalry at all. I have read reports that Microsoft has said some of their senior executives have encouraged their employees to chant, "Kill Netscape." Will Netscape fly a big banner that says ... "Beat Microsoft"?
BARKSDALE: We have no desire to bury Microsoft. It would be impossible.
SCHUCH: It's not a friendly rivalry, though, is it?
BARKSDALE: It's a competitive situation. I can certainly remember in other companies that I've been in where you've had competitors and you end up firing the troops up.
SCHUCH: Have you ever noticed anything or known anything of this caliber?
BARKSDALE: No, I can't say that I have. I know at Netscape, we don't encourage it. It seems that the competition is very heated, though, and a lot of things are said in the heat of competitive battle.
SCHUCH: Microsoft, of course, has been called the "Evil Empire" by some. Describe Bill Gates and the company.
BARKSDALE: I think they're an extremely competitive winner-take-all-outfit that has been very successful because of their extreme competitive stance. But that doesn't mean they're not beatable in certain niche markets. They have been beaten, and they will be beaten in the future.
SCHUCH: Well, you and Bill Gates do agree on one thing, and that is that the Internet, as appealing as it is, is just not simple enough for most people.
BARKSDALE: I agree that it's not simple enough for most people, and that is the great business opportunity for Netscape to make it simpler and simpler -- which is what basically we did. We made the Internet usable with our first product, the (Netscape) Navigator. Mere mortals could now cruise the World Wide Web.
SCHUCH: How did you learn about Netscape?
BARKSDALE: About 2-1/2 years ago ... I read this interesting article in Fortune magazine ... about these 25 hot companies to watch, these little startups. And one of them, the lead company in that article, was this company called MDC Communications (Netscape's forerunner)... and it had like 10 people. I said, 'This is a great product idea, because the thing the Internet was missing ...was utility, the ability to use (it). And here was a product that made it usable."
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