Aol Case Study

AOL (America Online) was founded in 1985 originally as Quantum Computer Services. In November 1985, it released the first online service called Q-Link with 10,000 users. In 1993, AOL offered internet access and their own online information and services aimed to the average American consumer. AOL surpassed its rival MSN with over 4.5 million members and voted the “Best Consumer Online Service”

by leading computer magazines. AOL and Bell Atlantic announced their partnership in January 1999, after acquisition of CompuServe and Netscape, to deliver high speed DSL access and AOL membership rose to over 20 million.

After ten years of being the top American online service AOL acquired Time Warner for $103.5 billion in January 2001. AOL’s plan of merging content and cutting-edge broadband technology crumbled the next two years with a $ 98.7 billion loss for 2002.

Issue -

AOL began to experience the strains of Global Communications to be aggressive in today’s market and to cut costs. In 2003, AOL announced major lay-offs in Silicon Valley and began searching for software engineers in India. The American public viewed AOL as dishonest. The Silicon Valley employees always felt discriminated the never felt welcome since Netscape merger in 1999.

Opportunity-

Renegotiation with the laid off Silicon Valley employees would create alternate resolutions such as job relocation to Dulles headquarters and access to job coaches.

End State Goals -

AOL’s develops a strategic plan to increase profits to win over stakeholders.

The American public viewed AOL as a trusted online information portal again.

AT&T (Mary Williams)

AT &T (American Telephone & Telegraph) has led the telecommunications industry since the 1800’s. For the first 70 years AT & T monopolized the market and today its innovative, cutting edge products are leading in the market.

Issue-

AT & T’s recent acquisition of Cingular wireless and partnership with Apple iPhone creates a consumer one-stop for their wireless, television, broadband and home networking products. AT & T’s branding issue was top priority for a cohesive strategic plan.

Opportunity-

AT & T used the Delta Airline generic benchmarking example. Delta Airlines discontinued their Song Fleet of leisure and travel fleets. Song became a hip