Paper Summary:

The writer cites the many factors that have led to AOL's successes and difficulties. The paper identifies strategies used by the company to stay on top, such as growth and diversification internationally. Finally, the writer acknowledges the challenges in staying ahead in a market that is reliant upon unforeseeable technological advances.

From the Paper:

"Overall, the industry in which AOL functions is being changed by demands for upscale product differentiation and diversification at best-cost price levels. Electronic Advertising & Marketplace Report (1999) recently reported that AOL is moving to expand its presence in a wide range and variety of online activities while also exploring (as noted above) new product development that will move the company into "information appliances." The online market for Internet access is reaching maturity, while technology innovations are driving competition into new areas. The negative impact of a mature market is balanced against market/product diversification (Yang, 1999). As early as 1997, AOL and other Internet access providers were faced with the necessity of responding to several additional market factors: 1) the dichotomy between business and personal Internet users, fostering the need to develop products meeting two sets of service needs and interests; 2) the advent of WebTV and cable-based Internet services; 3) intensified competition for the 70 million U.S. homes that are not online (along with the 84 million homes that are online but do not subscribe to AOL) (Mermigas, 1999)."

Visitors who viewed this Essay also liked these:

• Essay # 40848 : "America Online (AOL)"
• Analytical Essay # 139685 : "America Online - Early Strategies"
• Essay # 15208 : "AOL in Europe"

APA Citation:

MLA Citation: