Watch Out Microsoft -- Firefox Eyes Expansion in Japan (MSFT)

by: Steven Towns posted on: March 20, 2006 | about stocks: DCM / GOOG / MSFT / YHOO

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The Nikkei Weekly (March 13 edition, print-only) reported that Mozilla Japan is making a strong push into Japan as it tries to grab more of the nation's Internet user market share. It currently has about 4 to 5% but wants to more than double that amount to 12% or about the level of market share it has in the U.S. I think this is ambitious but certainly reasonable because of who Mozilla is choosing as its partners. If I were at Microsoft (MSFT) I might just be a little concerned about the momentum Firefox could gain if it were to catch on with the trend-happy Japanese. Kuchi-komi (translation: word-of-mouth) is equally as problematic for Microsoft.

You have to like Mozilla's approach as it is partnering with telecom giant KDDI, the archrival of NTT DoCoMo (DCM) of the NTT Group. Yahoo! Japan is said to have already been offering a Firefox download link on its homepage. Additionally, Yahoo! Japan's subsidiary Alps Mapping KK is now "offering a Firefox plug-in that enables people to use Firefox search functions to instantly view map data by simply typing in an address." Mozilla Japan plans to emphasize "how much easier it is to expand the functionality of Firefox compared to Microsoft Corp.'s Internet Explorer."

Interestingly, Google (GOOG) has yet to really catch on in Japan. Sure, most computer users have heard of it but the main search site for most Japanese is Yahoo! Japan. MSN Japan is also quite popular. Google on the other hand appears to be very simplistic and used more by techies, than compared to the flashy and colorful Yahoo and MSN sites. Google's position would improve if it were to roll out faster, more of the neat services it offers in English to the Japanese. True web portals rule in Japan and thus, a Firefox-Yahoo! Japan combo will be hard to beat.

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