strategies of aol
A. Business Strategies
1. Strategic Objectives
 Brand Name Recognition
 Alliances with Suppliers to provide Customers with "one-stop shopping"
 Develop massive customer base
 Create an easy internet/email service
 Create non-financial costs to customers to dissuade them from moving to competitors
2. Cost Strategy
 Profits mater more than growth
 Make cost to switch not financially practically
 Make it financially difficult for competitors to contend with AOL
3. Differentiation Strategy
 Provide on-line features with special offers to AOL subscribers
 Attract …
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…in a secure and make it difficult to switch
format internet providers
Cost Strategy
#Increase monthly access fee #Charge premium rates for Cash surplus secures position
privilege to advertise on any new delivery platform
on AOL
Differentiation
Strategy #Provide user-friendly access *AOL brand name creates Lower costs of acquiring new
immediate value to suppliers subscribers make it difficult
for others to compete without
suffering a financial hardship
 * is Strength of AOL
 # is Weakness of AOL
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