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Case Summary The merger of AOL-Time Warner hit rock bottom in January 2003‚ when the Company posted a loss of $98.7 billion for 2002‚ the largest corporate loss in US history. Being an employee of the company‚ TJ (we) have to give fact-based answers to Memos‚ which are assigned to us. In 2000‚ AOL purchased Time Warner for $164 billion‚ resulting in formation of AOL Time Warner. FCC‚ Federal Trade Commission and European Commission approved the deal a year later. AOL owned 55% of the new company
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References: AOL. (2012). About AOL‚ Overview. Retrieved May 1‚ 2012 from http://corp.aol.com/about-aol/overview Arango‚ T. (2010‚ Jan 10). In Retrospect How the AOL-Time Warner Merger Went So Wrong. The New York Times. Retrieved May 1‚ 2012 from http://www.nytimes.com/2010/01/11/business/media/11merger.html Diversification. 2012. In Merriam-Webster.com. Retrieved April 24‚ 2012 from http://www.merriam-webster.com/dictionary/diversifiction Junnarkar‚ S. & Hu‚ J. (2000‚ Jan 10). AOL to buy Time Warner
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when companies try diversification strategies they are not always as successful. Time Warner‚ one of the largest media companies in the world tried to diversify their business by stepping into unknown territory in 2000. When Time Warner purchased AOL at the peak of the dotcom bubble era‚ they had no idea that they were going to lose billions of dollars due to the acquisition. In 1994‚ Jeff Bezos founded Amazon.com‚ and in 1995 the website went online. Before Amazon.com was founded‚ Jeff Bezos
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industry relative to its competitors CompuServe and Prodigy? AOL offered a broad range of features including real-time talk‚ electronic mail‚ e-magazines and newspapers‚ online classes‚ shopping‚ and internet access. They also had software for the internet such as for production and distribution of original content‚ interactive marketing and transactions capabilities‚ and networks to support the transmission of data. In other words‚ AOL was a platform that connected the person with the need to internet
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Tagline: Get the best customer care support on your AOL About us: American Online or Aol is the leading service provider of online service and web portals. The company offers user simple‚ and quick solution on AOL email related issues. Its different names knew the company during past year. It was called Control Video Corporation ( 1983-85)‚ Quantum Computer service ( 1985-91)‚ American Online ( 1991 - Present). The company serves millions of customer worldwide. Its provide 24/7 customer service
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Case: America Online Inc.‚ Topic: Strategy Analysis Prior to 1995‚ AOL was so successful in the commercial online industry relative to its competitors CompuServe and Prodigy primarily because of its pricing rate structure which was the easiest for customers to understand and plan for ahead of time. CompuServe and Prodigy offered the same pricing as AOL for its standard service‚ but‚ charged additional fees for premium services and downloading which made it more difficult for customers
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Case: America Online. Inc. 1. Prior to 1995‚ why was America Online (AOL) so successful in the commercial online industry relative to its competitors CompuServe and Prodigy? • AOL was able to gain more market share because of rapid advertisement expansion • The company agressively marketed its online service using both independent marketing efforts‚ such as direct mail packets with AOL software disks; television and print advertising; co-marketing efforts with computer magazine publishers‚ also
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read it‚ and don’t know why I made it so much more difficult than it needed to be. The lapses in ethics and coporate social responsibility in the AOL Time Warner situation were actually‚ quite obvious. Blatent‚ obvious‚ and in my opinion‚ even obscene. Although my knowledge of the actual facts surrounding the merger of AOL and Time Warner is
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Q1: The major explanations to the reason why AOL was so successful in the commercial online industry comparing to its competitors CompuServe and Prodigy are as follows: · AOL offered the unique and board range of features such as Online Community‚ Computing and the like‚ so their services are relatively differentiated · AOL kept good relation with its customer because of the easy access to AOL’s online service which only required to have a personal computer‚ a telephone line‚ and a computer‚ and
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