Jeff Poulton

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Jeff Poulton
Johnny Clawson
America
Online
Andrew Sproul
Sean Clark
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-A major player in cyberspace.
-Subscriptions increased to over 6 million.
-Revenues surpassed 1 billion.
-One of every 3 users on the net was AOL.
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Stuck in the Middle?
-Higher priced than the competition.
-This _at_! service is always busy!
-Annual turnover rate was reaching 70.
-Negative press for accounting practices.
-19 hour blackout is headlining news story.
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Need a strategy
Go Generic!
Cost-Leadership Strategy
-outperform competition through lower costs. -ex.
H.J. Heinz, Dell Computer, ETrade.
Differentiation Strategy
-goods or services perceived as unique in a good
way. -ex. Mercedes-Benz, Rolex, Learjet.
Focus Strategy
-focuses on a particular niche. -ex. steel
mini-mills, Mexican restaurant.
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"Different"
Should AOL use a
strategy?
Potential Competitors sufficient barriers?
Industry Rivalry brand loyalty?
Power of Buyers are we still that unique?
Power of Suppliers who are they?
Substitute Products you mean theres another
ISP?
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Industrial "Growth" Race
Did AOL exploit its complementary assets?
-marketing know how, after-sales service, etc.
Had AOL failed to create a high enough barrier?
-patents, corporate secrets, etc.
Was the flood of capable competitors too fast?
-RD skills, access to complementary assets, etc.
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1) DSL technology-limited to small geographic
patches.
2) Digital satellite-limited to one-way
transmission.
3) Cable modem-95 of homes are cable accessable.
-ATT _at_home
-AOL-Time Warner merger
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