Netscape, which once controlled more than 80 percent of the market share in Web browsers, lost its dominant position when customers migrated to Internet Explorer, Microsoft's Web browser. Internet Explorer was easy to install and had no significant differences in terms of usability. This example serves to illustrate that

Question

Computers and Technology

Aileen Rhodes

10 March, 02:12

Netscape, which once controlled more than 80 percent of the market share in Web browsers, lost its dominant position when customers migrated to Internet Explorer, Microsoft's Web browser. Internet Explorer was easy to install and had no significant differences in terms of usability. This example serves to illustrate that

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Kenny Gibbs · Answer 1

E.

Explanation:

Based on the information provided within the question it can be said that this example serves to illustrate that firms with low switching costs can sometimes be rapidly overtaken by strong rivals with additional competitive advantages. Switching costs refers to the costs that a consumer incurs from switching brands or suppliers. Therefore if a competitor is offering the same product with better features, and the customers of Netscape do not lose much from switching this can easily cause Netscape to lose most or all of it's customers. Which it did.