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... “Dial-Up Losses Are Steeper Than Expected, AOL Says”Since 1985, AOL has come a long way. ... It did so by operating in different countries in different languages, yet AOL had always done this through one medium, the PC. ... “AOL rocketed in the 1990s by providing simple dial-up connections, connecting millions of people in ways that spelled instant obsolescence for dating services, overseas airmail and out-of-town newspapers stands. ... At the CS First Boston Global Telecommunications CEO Conference, Steve Case, Chairman and CEO of AOL said, "People are starting to expect their televisions, telephones, CD players and all kinds of handheld devices to provide them with the same interactivity, and same range of choices, and the same convenience and control they can get on the PCs. ... "AOL has one crucial advantage over their competitors - a revenue stream comprising 35 million customers paying monthly subscription fees. These revenues allow “AOL Anywhere” to experiment with providing wireless applications to this immense user community without financial risk. AOL’s “Anywhere Strategy” allows it to combine service, ease of use, and universal availability and to create a compelling wireless experience for users in all mobile and stationary venues. ... AOL has faced many unanticipated challenges since the merger, not the least of which was managing a media company through the worst advertising slump since World War II (70% decline in the price of the companys shares since the merger deal closed. ... The merger was really just about cashing out before the bubble burst anyway. ... IndustryThe AOL Time Warner merger presented a number of different entertainment mediums. ... In order to obtain a competitive advantage in each of the aforementioned industries, AOL Time Warner must be aware of how efficiently it is operating. ... Joe Lazlo, an analyst at Jupiter Communications, said, “ We believe that the AOL Time Warner merger will have a defining impact on the growth of broadband services and will shape consumers alternatives for gaining access to online information and entertainment. ... Another area of concern for AOL Time Warner will be digital cable services. ... Included in this list are some of AOL Time Warner’s major competitors such as AT&T and Comcast. As this industry continues to grow, the recently merged company will be forced to find different ways to compete so that AOL Time Warner can maintain its competitive advantage. ... CompetitionAlthough AOL Time Warner is a leader in the industry, it continues to face fierce competition from other companies. ... Companies like AT&T and other digital subscriber lines (DSL) offer customers Internet Service Providers similar to AOL. ... This intense competition will require that AOL Time Warner remains focused on the needs of individual customers in each industry. Many feel that AOL Time Warner will be able to outperform each of these companies because of the content offered. However, when this merger was originally considered, there was speculation that the company would dominate each of the industries in which it operated. To avoid this, the Federal Trade Commission (FTC) set up guidelines that AOL Time Warner must uphold; otherwise it will face legal sanctions. The Federal Communications Commission (FCC) is responsible for ensuring that the stipulations established by the FTC are upheld by AOL Time Warner. ... Recommendations: Strategies and actions to takeIf AOL wants to be successful, it must focus on current customer demands, while finding devices that people currently own to open accessibility for new and old customers alike. ... AOL will have to compete with Microsofts WebTV to stay ahead of the competition. It has already implemented plans to bring access to the Internet to people without PCs by using something they call AOL TV. ... AOL TV will have the advantage of Time Warners relationships with its cable customers, as well as promotion on Time Warners cable networks and program offerings." Following is the synopsis of the possible solutions to solve AOL’s financial problems:- focusing on broadband and its capabilities; making agreements with cable companies; trying not to lose existing dial-up customers to broadband: "If theyre going off narrowband, we want them on our broadband,"; trying to capitalize on its wireless solutions – the future is in the wireless industry (specially WI-FI.
Approximate Word count = 3305
Approximate Pages = 13.2
(250 words per page double spaced)
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