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...rth „Ï Generated guaranteed future revenues C. Uses of Technology ƒá New AOL software could save up to $40 million in customer service costs ƒá Creating a personalized digital newspaper ƒá Creating competition for WebTV D. Problems to Overcome „Y Not customer service friendly „Y Internet service occasionally has outages and email glitches „Y The telcos and cable companies are targeting AOL's customers „Y Analysts predict AOL will lose market share „Y Lead companies would rather invest in their own websites than AOL advertising E. Recommendations The key strategy is leveraging the brand name of AOL. AOL adds more than 10,000 users a day . Once consumers associate Internet service with AOL, then competitors will not be able to enter the market. AOL needs to form more alliances with suppliers to ensure guaranteed financial revenues for many years. AOL needs to strategize with the cash surplus and focus on new technology to eliminate system outages and email glitches. If AOL users experience to many difficulties, then they will surrender the financial and nonfinancial costs to mover to a more sophisticated Internet provider. F. Time Warner Merger 20 million families rely on AOL to be their Internet provider. This is a powerful market of consumers who are influenced by convenience. This merger is an attempt to lock in customers to AOL with the convenience of ¡§one-stop shopping¡¨. Customers will be able to watch TV and email their friends about a particular program at the same time. Customers will also be able to surf the Internet during commercials of their favorite TV show. This merger is another step towards AOL¡¦s strategic goal of creating non-financial costs to deter customers from switching to another Internet provider and simultaneously, AOL will be able to create new marketing arenas in order to attract suppliers to form alliances with AOL. Strategies and Technology Customers Suppliers Competitors Strategic Objective Offer many online- * Leverage subscribers *Lock out competitors services for ease base for maximum by locking in customers of customers advertising & suppliers with AOL Cost Strategy Make cost to switch Offers suppliers access Make it financially difficult not practical to have customers pay on-line for competitors to rather th...