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Aol business strategies dissertation

A. Organization Strategies

1 ) Strategic Aims

? Brand Name Acknowledgement

? Alliances with Suppliers to supply Customers with one-stop searching

? Develop massive customer base

? Create an easy internet/email service

? Generate non-financial costs to customers to deter them motionless to rivals

2 . Expense Strategy

? Profits mater a lot more than growth

? Produce cost to change not monetarily practically

? Help to make it financially difficult pertaining to competitors to contend with AMERICA ONLINE

3. Difference Strategy

? Offer on-line features with special deals to AMERICA ONLINE subscribers

? Catch the attention of suppliers by intangible good thing about association with AOLs brand

? Offer high grade services

? Present user-friendly access

4. Development Strategy


? New AOL application


B. Successes

? Forty percent of on the web traffic is from AOL

? Users happen to be watching less TV consequently advertisers are spending more on internet promoting

? Reduced costs by eliminating inefficient units

? Decreased costs simply by lowering AOLs cost of connect time

? Reduced costs to buy new readers

? Leverage AOLs massive reader base for all it is well worth

? Generated certain future profits

C. Uses of Technology

? New AOL software may save up to $40 million in customer service costs

? Setting up a personalized digital newspaper

? Creating competition intended for WebTV

D. Problems to Overcome

? Not really customer service friendly

? Internet service at times has black outs and email glitches

? The telcos and cable businesses are targeting AOLs customers

? Experts predict AMERICA ONLINE will lose market share

? Lead corporations would rather buy their own websites than AMERICA ONLINE advertising

E. Recommendations

The real key strategy is leveraging the brand name of AOL. AMERICA ONLINE adds more than 10, 000 users a day. Once consumers associate Web service with AOL, then competition will not be capable of enter the market. AOL should form more alliances with suppliers to ensure guaranteed economic revenues for many years. AOL should strategize with the cash surplus and focus on new technology to eliminate system black outs and email glitches. In the event AOL users experience to numerous difficulties, they will surrender the economical and nonfinancial costs to mover to a more sophisticated Net provider.

Farrenheit. Time Warner Merger

twenty million people rely on AMERICA ONLINE to be their Internet supplier. This is a strong market of shoppers who happen to be influenced simply by convenience. This kind of merger is usually an attempt to lock in consumers to AOL with the convenience of? one-stop searching?. Customers should be able to watch TV and email their particular friends in regards to a particular system at the same time. Customers will also be capable of surf the web during advertisements of their beloved TV show. This merger is another step toward AOLs ideal goal of making non-financial costs to deter customers by switching to a new Internet service provider and at the same time, AOL will be able to create new marketing circles in order to catch the attention of suppliers to form alliances with AOL.

Tactics and Technology

Customers Suppliers Competitors

Strategic Objective

Give many online- * Influence subscribers *Lock out competition

services for ease basic for maximum by fastening in clients

of customers marketing, suppliers with AOL

Expense Strategy

Make cost to switch Offers suppliers access Generate it economically difficult

not practical to acquire customers pay out on-line pertaining to competitors to

rather than sending out a bill contend with AMERICA ONLINE


Strategy Provide even more on-line *Suppliers benefit simply by *Offer distinctive rights to contracts

features with unique association with AOLs and so competitors can no longer

offers to subscribers name brand add equal value with their services


Strategy Bring in AOL Immediate #Offer innovative ideas #Provide unmatched products

so users who have of promoting and and services

web pages can be assembled advertising discussion boards

by common interests

Strategies and Successes

Strategic Goal

*Brand identity recognition *Offer alliances to supply *Develop substantial customer base

all their services in a secure and make hard to switch

format internet services

Cost Strategy

#Increase monthly access fee #Charge superior rates intended for Cash surplus secures location

privilege in promoting on any new delivery platform

on AOL


Strategy #Provide user friendly access *AOL brand name produces Lower costs of acquiring fresh

instant value to suppliers clients make hard

for others to compete with out

suffering monetary hardship

? 5. is Strength of AMERICA ONLINE

? # is Weakness of AOL


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