America Online and Time Warner

America Online and Time Warner


* This case study was prepared based on the material contained in ?AOL Time Warner? by Arthur A. Thompson and John E. Gamble, which was published in Strategic Management:Concepts and Cases/ Arthur A. Thompson, Jr., A.J. Strickland, III. ? 12th ed.


America Online is the world?s most popular online service. Why do more than 12

million people subscribe to AOL The many reasons include availability, simplicity, and

content. It provides subscribers a variety of interactive features ? electronic mail, Internet

access, entertainment, news, sports, weather, financial information, electronic shopping,

and more. It greatly increased competition for market share, because almost everything

AOL has to offer can be found in some form on the Internet. The increased demand

yields opportunities for dramatic growth, but it also causes many difficult, technical,

financial, and managerial challenges.

The pace of change in fiscal year 1997 had AOL scrambling. AOL?s primary

market is the home computer user, and that market is still growing. Their new

fundamental purpose and passion has been to create a new medium that is easy to use and

as accessible as the telephone and television ? and just as central to the lives of millions

of people around the

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