Jim Clark the cofounder of Netscape wrote a book about his experiences called Netscape Time by Jim Clark , St. Marin’s Griffin Press, NY, 1999. Within the book besides the description of how Netscape was founded are important lessons to run a successful business including funding and venture funding, managing companies, use of resources , however to focus on two items – the market and the competition.

Mr. Clark writes – one of the great revelations that comes from the introduction of any new technology is that the users or the market will tell you how the products of that technology are used. The market tells you where the your market is and you better listen. A wonderful example is many know the original use of the Gutenberg’s printing press was to print copies of the bible. If it only be used for that, no communication revolution would have occurred. Once a bible could be printed, leaflets and books could be printed that was the revolution which the market said it wanted. The quality of a measure of how good a product is – and how smart a company is- can be seen in how quickly both adapt to new and unplanned for events. The market drives the market. You have to remember 15 years ago when Netscape came out there was no Yahoo or Google to organize the internet, it was done to give the world the internet and they will figure out what to do with it.

The competition is another theme Mr. Clark talks about in his book and it is Microsoft. If you have a computer, likely you have used Microsoft products, which is why Microsoft is still a dominant player in the software business. Microsoft is not great at inventing things, it is great at buying other ideas and gaining control of markets which in turns allows Microsoft to make a lot of money. In the software industry, if you are not a Microsoft supplier, you worry about the company and how and when it will send its resources into your area. Microsoft, as a late comer to most innovations, it came late to the power and money making possibilities from the internet. In the book, Mr. Clark was always worried about how they would react and could they both companies survive.

Linking to dividend paying stocks, as a company which is sustainable, as an investor you have to watch is how well in tune the company is to the market. In the case of Netscape, the market with the internet changes, what was the establish norms some years ago changed, people can do the same thing through different processes. While the dividend paying company is making money, you have to ensure that the company is well tuned to the market to continue to make money.

There are more questions than answers, till the next time – to raising questions