Case Analysis of AOL
Introduction
Chairman Richard D. Parsons
Became Chairman in May 2003
Driving Time Warner's growth
Working on a range of strategic, financial and operational initiatives
Supervising the interaction and coordination of the company's operating divisions
Vice Chairman Kenneth J. Novack
Became Vice Chairman in 1998
Provides strategic counsel and handles special assignments for the Chairman
Assumes a leading role in major corporate transactions.
AOL Time Warner
The world・s leading media & entertainment company, whose business include interactive service, cable system, filmed entertainment, television networks, music and publishing
History
Established in 1998
Headquartered at Dulles, VA
Early technology-based companies
Building industry-leading products & services
Invested over $250 million
Mission
enrich people・s lives & strengthen the communities in which it operation
Actively monitor the market
Work closely with the operating divisions
Extract value from emerging companies
Basic Principles
World-Class Franchises
Transparency & Integrity
Fiscal Discipline
Return on Investment & Free Cash
Collaboration
Continuous Innovation
People Matter Most of All
Values
Creativity
Customers focus
Agility
Teamwork
Integrity
Diversity
Responsibility
Board of Directors
Workforce
Attract world・s best talent from different background
Build up an inclusive workplace & corporate culture
Build up reputation as an employer of choice
Target market
Non-profit Market
Young people
AOL Time Warner
Value Cluster
Market Evolvement
1985・
Founded as Quantum Computer Services, offering an online service called Q-Link for owners of Commodore
1986・
W-Link subscribers number 100,000 owing case・s persistence in market
1987-88・
Quantum allies with Apple.
1989・
Q-Link service is renamed America Online
1992・
Initial public offering in March raises $66 million
AOL・s 200,000 subscribers put it a distant third in popularity behind CompuServe and prodigy
1994・
Buys Redgate Communications, gain 1 million subscriber
1995・
Teams up with German media firm Bertelsmann to offer online services in Europe
1996・
Reaches 5million subscribers
Case makes Business Week・s cover, inside, AOL is termed the ：most potent force in cyberspace；
1997・
Surpasses 10 million subscribers
1998・
Buys CompuServe, a competing pioneering online service that once had 6 times as many subscribers as AOL
Agrees to buy Netscape
1999・
Buys Netscape Communications Corporation, whose Navigator browser popularized the World Wide Web
Buys MovieFone Inc., the nation・s largest movie listing guide and ticketing service
2000・
announces planned merger with The Warner Inc
2001・
the UK's largest magazine publisher
2002・
The AOL service added 851,000 international members in the quarter, for a total of 8.0 million
Growth Rate
Customer Benefits
instant messaging
chatting and shopping online in straightforward
ease of use with user guideline
thousands of hours of research and testing
Existing and Non-existing Competitors
Existing
Bet. COM
~provide channel, music, e-mail and so on
Non-existing
Yahoo
~expend to entertainment
Objective
World-Class Franchises
Transparency and Integrity
Fiscal Discipline
Return on Investment and Free Cash
Collaboration
Continuous Innovation
People Matter Most of All
AOL Time Warner
Market Space Offering
Cross-Category Dominance
One of the most interesting developments in the online world is the extension of product offerings from a single category to additional product categories
These services are:
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