American Online American Online

PresentedPresented

ByBy

Ling Chen Ling Chen Amy FortierAmy FortierKarla MillerKarla Miller

AOL AOL Mission and ValuesMission and Values

To build a global medium as central to To build a global medium as central to people’s lives as the telephone or people’s lives as the telephone or

television… and even more valuabletelevision… and even more valuable

AOL TimelineAOL Timeline 1985 –original founding name, 1985 –original founding name,

Quantum Computer Quantum Computer Services 1991- changes name to Services 1991- changes name to America America Online.Online.

1992- AOL goes public on 1992- AOL goes public on NASDAQNASDAQ

1993-AOL service exceeds 500,000 1993-AOL service exceeds 500,000 membersmembers

1994-AOL service reaches 1 million 1994-AOL service reaches 1 million membersmembers

1995-AOL service exceeds 4.5 1995-AOL service exceeds 4.5 million membersmillion members

1996-AOL introduces unlimited-use 1996-AOL introduces unlimited-use pricing plan of $19.95 per pricing plan of $19.95 per monthmonth

1997- AOL service passes 8 million 1997- AOL service passes 8 million membersmembers

2002 – AOL service surpasses 34 2002 – AOL service surpasses 34 million membersmillion members

Growth Expansion

010,000,00020,000,00030,000,00040,000,000

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

Years

Cust

omer

Bas

e

AOL BusinessAOL Business AOL ServiceAOL Service AOL AnywhereAOL Anywhere AOL International AOL International CompuServeCompuServe ICQICQ MapQuestMapQuest MoivefoneMoivefone NetscapeNetscape AOL Music AOL Music AOL LocalAOL Local AOL Instant MessengerAOL Instant Messenger AOL BroadbandAOL Broadband

AOL Time WarnerAOL Time Warner Media & Communications GroupMedia & Communications Group America OnlineAmerica Online AOL Time Warner Book GroupAOL Time Warner Book Group AOL Time Warner Interactive VideoAOL Time Warner Interactive Video Time Inc.Time Inc. Time Warner CableTime Warner Cable

Entertainment & NetworksEntertainment & Networks Home Box Office Home Box Office New Line Cinema New Line Cinema Turner Broadcasting System Turner Broadcasting System Warner Bros. Entertainment Warner Bros. Entertainment Warner Music Group Warner Music Group

EconomicEconomic

Early 80’s marked by recessionEarly 80’s marked by recession

Unemployment was 9.6% in 1984Unemployment was 9.6% in 1984

Conditions improved by 1994 economyConditions improved by 1994 economyrebounded and U.S enters growth periodrebounded and U.S enters growth period

1990’s economy created 13 million new jobs1990’s economy created 13 million new jobs

Political/LegalPolitical/Legal

Access Access Authentication and ID Authentication and ID Bandwith Bandwith CopyrightCopyright Digital SignaturesDigital Signatures Domain Names    Domain Names    Encryption Encryption Free SpeechFree Speech Junk E-Mail   Junk E-Mail   Privacy  Privacy   Taxation    Taxation    Wiretaps Cybersecurity Wiretaps Cybersecurity

AOL Social/CultureAOL Social/Culture

Family InitiativesFamily Initiatives– Babies & Me Program Babies & Me Program – Child careChild care– Employee Assistance ProgramEmployee Assistance Program– Adoption BenefitAdoption Benefit– Expectant Mother ParkingExpectant Mother Parking– Family Resource & Referral Family Resource & Referral – Long-Term CareLong-Term Care– Take Your Child to Work DayTake Your Child to Work Day

AOL Community AOL Community

AOLAspires.orgAOLAspires.org e-Buddiese-Buddies JumpstartJumpstart Job Shadow DayJob Shadow Day Greater DC Cares ServathonGreater DC Cares Servathon

Service Comparison AOL EarthLink MSN AT&T1

SBC /

Yahoo!

Prices

Monthly Access Cost**  $9.95*  $23.90 $21.95 $21.95 $16.95 $15.95

Account Features

2-Minute Online Download Yes No No No No No

Answer Phone Calls and Remain Online (V.92) Yes4 No3 No No2 No No

Personalized E-mail Address Yes Yes Yes Yes Yes Yes

Web Based E-mail Yes Yes Yes Yes Yes Yes

Content-Rich Startpage Yes Yes Yes Yes Yes Yes

 NetZero

 

 

Instant MessengerInstant Messenger

ProblemProblem

AOL offers too many free resources that are AOL offers too many free resources that are not profitablenot profitable

Consumer satisfaction with AOLConsumer satisfaction with AOL Can not compete in current marketCan not compete in current market Too Many Logos that do not connect the Too Many Logos that do not connect the

AOL nameAOL name Needs foundation that can support Needs foundation that can support

broadband users needs broadband users needs

Problem Problem

5 year history5 year history

 

AOL LogosAOL Logos AOL NetmarketAOL Netmarket AOL Travelers Advantage AOL Travelers Advantage AOL AutoVantageAOL AutoVantage AOL Credit AlertAOL Credit Alert AOL Visa AOL Visa AOL FreeTime OnlineAOL FreeTime Online

AOL Reminder ServiceAOL Reminder Service Sign On A Friend Sign On A Friend AOL Shop DirectAOL Shop Direct The AOL GuaranteeThe AOL Guarantee Long DistanceLong Distance Business PerksBusiness Perks OthersOthers

AlternativesAlternatives

One logo for brand loyaltyOne logo for brand loyalty

Focus on the businesses currently have and Focus on the businesses currently have and are profitableare profitable

AOL need to find a broad-band company AOL need to find a broad-band company and develop coopetition and develop coopetition

Solution Solution

AOL need to find a broad-band company AOL need to find a broad-band company and develop coopetitionand develop coopetition