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The Mozilla Corporation was established in August 2005 as a wholly own taxable subsidiary that serves the non- profit, public benefit goals of its parent, the Mozilla Foundation. Mozilla Corporation provides Internet solution, it offers Firefox, a web browser, Thunderbird 2, an email application, Raindrop, a prototype messaging tool, which enables users to manage a stream of messages coming from sources, such as Twitter and Facebook into their emails and Rainbow, a developer prototype that brings video and audio recording to Firefox 4. The company also provides Bugzilla, a bug tracking system that helps users to manage software development. It also operates an online store that provides apparel. The company is based in Mountain View, California. Mozilla Corporation operates as a subsidiary of Mozilla Foundation.
In a short, Mozilla organization and technology are all focused on a single goal: making the Internet better for everyone.
2. Mission statement
Mozilla states that : ‘ Our mission is to promote openness, innovation and opportunities on the Web’. At Mozilla, they are a global community of technologists, thinkers, and builders working together in order to keep the Internet alive and accessible and people around the world can be informed the contributors and creators of the Web. This action of human collaboration across an open platform is essential for individual growth and collective future of the company. There are 10 key principles that guide our mission to promote openness, innovation and opportunities of the Web. They are:
• The internet is an integral part of modern life – a key component in education, communication, collaboration, business, entertainment and society as a whole.
• The internet is a global public resource that must remain open and accessible
• The internet must enrich the lives of individual human beings.
• Individual’s security and privacy on the Internet are fundamental and must not be treated as optional
• Individual must have the ability to shape the Internet and their own experience on it.
• The effectiveness of the Internet as a public resource depends on interoperability, innovation and decentralized participant.
• Free and open source software promote the development of the Internet as a public resource.
• Transparent community- based process promote participation, accountability and trust
• Commercial involvement in the development of the Internet.
• Magnifying the public benefit aspects of the Internet is an important goal, worthy of time, attention and commitment.
3. PEST analysis
3.1. Technology – new technology
Mozilla seeks to get ahead of others, be a leader and innovator in as aspect of providing better online service. What makes Mozilla proud is the open source community that allows developers from all over the world, whoever they are to participate in the development. The Mozilla Developer Centre, started in 2005, is the official Mozilla Foundation website for development documentation and news about Forefox, Thunderbird, and other Mozilla Foundation projects. In 2006- 2007, the expense for R& D of Mozilla doubled compared to some years ago. This shows the importance of new technology from their point of view.
3.2. Social- Lifestyle changes
Trends in social factors may affect the demand for a company’s product and how that company operates. Furthermore, a company may change various management strategy to adapt to these social trends. Mozilla see that advertising budgets will continue to be shifted out of television, newspaper, and magazines into internet advertising. The convention way of marketing will be abolished as convergence towards IT and internet takes effect in the near future.
3.3. Political – monopoly control
Political factors include areas such as tax policy, labor law, environment laws, trade restriction, tariff…this also include goods and service which the government wants to provide or those that the government does not want to provide. The United State Department of Justice filled civil action against Microsoft in 1998, alleged that Microsoft abused monopoly power. Mozilla’s Mitchell Baker weighed in and said that : Microsoft’s business practices have fundamentally diminished competition, choice and innovation in how people access the Internet.
In conclusion, the most important factors affecting the Mozilla cooperation are the constant changes to technology, lifestyle changes and monopoly status of IE. The IT industry is sensitive to changes around it and through greater understanding of each component in PEST, Mozilla will be able to progress in right direction.
4. SWOT analysis
– Open source community
– The largest 3rd party plug in community
– Faster than IE, most efficient browser in memory usage
– Respect for internet standardization Weakness
– Limited branding and marketing budget
– Not focusing on a single main feature
– Dependent on loyalty of external developers.
– Small internal team
– Mobile platform browser
– Rise of lifestyle media
– EU is charging Microsoft concerning its IE web browser Threat
– Dependent on Google
– Google is developing it own browser
– Users do not see difference between browsers
– Users downloading browser, but not use it.
5. Industry and competitor analysis.
The most dangerous competitors for Mozilla is Internet Explorer ( in fact, Internet Explorer owns 67% of the market). The market also exist 2 smaller competitors such as Google Chrome and Opera. It is considered that there is a high degree of competition between Mozilla Firefox, Internet Explorer and Safari. The market is constantly growing and will provide great revenues in future, so competition will still grow. And IE’s market share is constantly decreasing, so it is a signal of high level of competition.
• Substitute and supplier
Substitute products are not a big threat for their industry, internet explorer browse will not be extinct at least in the near future. As a company that produces software, they do not have material or big service supplier. The only suppliers, are their external open- source developers and the whole community itself that contribute to their product with ideas, programming and knowledge base and they are dependent on their willingness to help developing Firefox.
6. Business model
The business model used by Mozilla is unique, it is a mixed of loss leader, accessorizing and brand OSBM. The loss leader business model is used to prevent monopoly. Netscape released the source code to prevent Microsoft to get monopoly on the web browser market. Mozilla also uses accessories model by selling T- shirts, gear, outwear and other merchandise. So we could say that Mozilla uses brand licensing, with a combination of accessorizing and brand business model Mozilla obtain income from merchandise sale. Mozilla does not have hardware or any service for product.
As a result of suitable business model and strategy, from Mozilla’s financial statement, we can see that Mozilla revenue in 2009 was 34% more than 2008. The majority of revenue continues to be generated from organization such as Google, Yahoo, Yandex,Amazon…
In conclusion, Mozilla has a unique business model which is based on open source. Mozilla strongly relies o Google, Firefox belongs to one of the cheapest traffic source for Google. In 2003, the Mozilla started to reinvent the web, five years later, they have significant influenced on Internet explorer’s monopoly. The following chart shows the revenue of Mozilla from Google search deal. The figure show gradual increase in revenue through years.
7. Mozilla’s challenges in open source innovation.
Though Mozilla’s open source model encouraged collaboration among the developer community and promoted innovation, some experts think it is in the long run. They fell that free and open source software posed operational and security risk and sometime leads to technical failures due to difficulties in tracking the origin of the source code. Moreover, they point out that some products are vulnerable to plagiarism.
In fact, the model of functioning raised several tricky management issues, like a long winded decision- making process and lack of secrecy. In addition to some challenge just mentioned, Mozilla was concerned over the declining market share of its flagship browser. In fact, Firefox’s market share is falling gradually. Some analysis fell that one of the biggest challenges for Mozilla is to maintain the market share amid tough competition from browser like Chrome and IE which are steadily gaining market share. The chart below show the worldwide Firefox market share in 2014.
While the management of open source innovation was a crucial issue for Mozilla, marketing the products developed also proved to be a significant challenge. The entire marketing strategy of Mozilla focused on using ownership, inherent in the Firefox developer community to make them undertake measures to promote Firefox…
• Bracini, A.M.2011. Analyzing Business Models for the Open Source Industry: A research Proposal.
• Chockalingam, A.2011. Framework for Analyzing the Success of Open Source Software. Master Degree, the Ohio State University.
• Independent auditors’ report, 2005, Mozilla Foundation Subsidiary.
• Lenny T. Mendonca and Robert Sutton, 2008, Succeeding at open source innovation.
• Nino, Matej, Business models based on open source software: case of Mozilla.
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