* This case study was prepared based on the material contained in "AOL Time Warner- by Arthur A. Gamble, which was published in Strategic Management:Concepts and Cases/ Arthur A. Thompson, Jr., A.J. Strickland, III. - 12th ed. .
America Online is the world's most popular online service. Why do more than 12 .
million people subscribe to AOL? The many reasons include availability, simplicity, and .
content. It provides subscribers a variety of interactive features - electronic mail, Internet .
access, entertainment, news, sports, weather, financial information, electronic shopping, .
and more. It greatly increased competition for market share, because almost everything .
AOL has to offer can be found in some form on the Internet. The increased demand .
yields opportunities for dramatic growth, but it also causes many difficult, technical, .
financial, and managerial challenges.
The pace of change in fiscal year 1997 had AOL scrambling. AOL's primary .
market is the home computer user, and that market is still growing. Their new .
fundamental purpose and passion has been to create a new medium that is easy to use and .
as accessible as the telephone and television - and just as central to the lives of millions .
of people around the globe. They strive to remain the leader in that medium, improving .
customers' lives by offering value, "ease-of-use-. With this will cause the merger with .
Time Warner. What the new decade is looking for.
Everyday millions of people go online.
Merge: With this will entitle new-economy.
Additional new software to keep ahead of the competition.
Focus toward the new generation of children.
The AOL Foundation.
High-speed growth with TV and telephones.
AOL anywhere anytime.
Forming new partnerships with electronics.
Since the use of the Internet and online services is growing at dramatic rates and .
the interactive medium was growing in very unpredictable ways, AOL managers believed .