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AOL
- 1. Business Model Evolution Sheena Deol Engineering Management An Analysis of AOL’s Products and Services
- 11. Unique Features
- 13. AOL Subscribers [U.S. 2001-2009]
Editor's Notes
- Business models often change when a company is trying to survive in an ever changing market. Keeping up with competitors can be difficult so the business strategy.
- Strategy: focuses on growing the size, engagement and monetization of its worldwide audience by providing highly relevant content and advertising to consumers across the Web AOL is best known for its online software suite. - world's largest "walled garden" - Peak: AOL's membership was over 30 million members worldwide
- Focus: Content Provider
- Focus: Content Provider & Online Adveritising
- Cable pioneer named William von Meister was looking for a way to use his innovative modem transmission technology - unsuccessfully presented the idea of downloading music through the technology - Had a a delivery tool and no content. - Converted his variable speed adaptive modem technology to download games from central servers to individual households.
- Kimsey was brought in by an investor. Out of 100 employees from Control Video, only 10 remained in the new company. Kimsey changed the company's strategy, and in 1985 launched a dedicated online service for Commodore 64 and 128 computers, originally called Quantum Link ("Q-Link" for short).
- After the company parted ways with Apple in October 1989, Quantum changed the service's name to America Online Kimsey soon began to groom Case to ascend to the rank of CEO, which he did when Kimsey retired in 1991.
- Originally, AOL charged its users an hourly fee, but in 1996 this changed and a flat rate of $19.99 a month was charged. Within three years, AOL's userbase grew to 10 million people. During this time, AOL connections would be flooded with users trying to get on, and many canceled their accounts due to constant busy signals (this was often joked "AOL" standing for "Always Off-Line").
- At it’s peak, AOL had 30 million subscribers. Competitors emerged - cheaper dial up providers; broadband sources AOL had - base technology and had a key technology but had no pacing technology
- Brief timeline of important milestones
- Aol would continue to upgrade its services but the upgrades lacked a new identitiy
- Did not reinvent themselves. Compare to ipod
- This would be the perfect time to do a SWOT analysis
- Lack of swot analysis People expected this merger to have the strengths of both Management was bad - and unethical and that went down the management
- Employees had quotas and bonuses for discouraging people from ending their service. They would also stall the discontinuation of billing. Released user search criteria.
- New Business Model - as a content provider like yahoo