America Online Corporation Case Study Solution

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Introduction
Mission Then: “to build a global medium as central to people's lives as the telephone and even more valuable”.
History: It all started in the year 1983 when Steve Case worked for Control Video , It is an Online Gaming Service firm. In the year 1985 the company was renamed as Quantum Computer and it introduced an Online Service application service called Q-link. Then in 1989 the company extended Q-link further with a new national service called AMERICA ONLINE. At last the company was named America Online. In 1992 the company initiated Public Offerings, in 1993 Steve Case was named as the CEO, in 1994 the number of subscribers using reached 1 million,1995 AOL also reached Europe on the name called AOL Europe . Finally in 1996 number …show more content…
• AOL bought its all-time competitor CompuServe in 1998.
• At its all-time high the company had 30 million subscribers.
• Finally the company became the premier ISP in USA
SWOT ANALYSIS:
Strengths:
• Cost Advantage: The company’s low cost policy has always helped it in being in top when compare to its other competitors.
• Effective Communication: The GUI Chat Interface ensured effective communication between the clients and also the users in the market.
• Innovation: The Company’s Mission Statement clearly states that its main goal is to innovate so this plays an important role in company’s progress.
• Loyal Customers: The company’s good will always made sure that the customers are loyal to the company and they tend to keep coming back for more services.
• Strong Brand Equity : Compared to its competitors AOL has a great Brand value and equity which intern leads to good market value and stand in market.
Weaknesses:
• Low Market Share: The Market share of AOL is low when compared to other competitors .so it has to increase its market share to stand strong in the market …show more content…
• Product and Service Expansion
• Takeovers: Its always visible in today’s news that some company is taking over the other company by doing so expanding its business radius .The same can be applied for a company like AOL.
Threats:
• Competition: The Market is huge as so is the competition .In this way the company like AOL has always a Threat from its competitors.
• Cheaper Technology: The Technology is getting cheaper day by day this is a big disadvantage for AOL because it increases competition in different fields .
• Price wars :Know a day’s it’s obvious that if one Company reduces the price of its price the other company also tends to reduce its price even though it has to compromise its quality .This kind of competition is a great threat for a company like AOL.
• Product Substitution : In today’s world their us always a choice when it comes to choosing a product in whatever field it may be. So this is a big disadvantage and threat for a Company like
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