This website uses cookies to ensure you have the best experience. Learn more

Aol Case Study

4699 words - 19 pages

America Online (AOL)

In the early 1980s, Case felt there was a latent market for user friendly online services. The online services provided at that time were very complex and costly and provided poor quality content. Believing that the online service market would evolve into a big industry in future, Case, Jim Kimsey and Marc Seriff founded AOL in 1985. The company was initially incorporated as Quantum Computer Services (Quantum). Quantum provided online services to consumers via PC modems. Quantum's first product was 'Q-Link,' a proprietary online service that routed emails and chat through its communication network (via telephone cables). Q-Link became popular in the market, and ...view middle of the document...

He was at the receiving end of the shareholders' wrath since the merger of AOL and Time Warner had failed to deliver and the stock price had gone below US$ 20 per share. The credit agencies had also downgraded the company's ratings. In 2003, when e-business companies were performing well in the US, AOL's subscribers continued to leave to make use of other cheaper alternatives like low cost dial ups and broadband providers...
Accounting Irregularities
In 1995, AOL and Bertelsmann, a German Company, formed a joint venture to run AOL Europe. In March 2000, they signed a contract which specified that Bertelsmann could demand AOL buy out Bertelsmann's 49.5% interest in AOL Europe for US$ 6.75 billion. AOL had the option of paying in stock or in cash in case it bought out the 49.5% stake. In March 2001, Bertelsmann exercised this right and persuaded AOL to pay in cash. AOL agreed to pay in cash provided Bertelsmann bought advertisements valued at US$ 400 million on AOL's website. Bertelsmann agreed and AOL booked US$ 400 million in ad revenues. SEC's objection was that the AOL should have booked US$ 400 million as the cost of sales, and not as advertising revenues... | |
Declining Subscriber Base
AOL had attracted several advertisers prior to 2001, after which the company decided to limit the number of online ads, in order to improve its subscribers' experience. The sales force of AOL made the marketers sign up multi-year contracts. In order to place the ads, the marketers needed to use the proprietary software of AOL called Rainman (Remote automated information manager). Rainman did not support many types of web animation. Marketers had to recreate online ad programs especially for AOL in order to display their advertisements...
| -------------------------------------------------
Shareholders' WrathCarl Icahn (Icahn), a billionaire financer, took a stake in Time Warner in August 2005. Icahn with a few money management firms wrote an open letter to Time Warner shareholders, attacking the company's board members and management. In the letter, he criticized the company for not being able to migrate AOL users to broadband and being unable to compete with Google and Yahoo! effectively. He also complained that Time Warner had neglected AOL since 2000, and had started highlighting AOL as one of its key businesses only around 2005. In October 2005, Icahn accused Time Warner's managers of selling the company's assets at a low price... |
The Revival Strategy
In spite of pressure from the investors to sell AOL, Parsons' stuck to his stand and held on to AOL. Parsons systematically cleaned and spruced up the company's businesses, resolved the accounting investigations issues of AOL and settled law suits. Parsons and Miller decided to improve AOL's businesses by providing a wide range of online...

Other Papers Like Aol Case Study

Lester Electronics Benchmarking Essay

5059 words - 21 pages a joint venture, (2) Lester Electronics may accede to be acquired by Avral Electronics, S.A. and lastly, Lester Electronics may lose an exclusive distribution agreement if Shang-Wa is taken over by Transnational Electronics Corporation. LEI must consider each aspect when deciding the proper course of action. It is expected that through this generic benchmarking study Lester Electronics may identify the optimum strategy and obtain the proper

Business Law Essay

1666 words - 7 pages that a defendant acted negligently simply because a harmful accident occurred. In the case of a physician from the Study Guide, a person went to the doctor with abdominal pains after having his appendix removed and X-ray shows the patient having a scalpel in his abdomen. There’s no legitimate reason for a doctor to leave a scalpel in a body at the end of an appendectomy thus can be sued for Breach of that Duty using Res Ipsa Loquitur. In relevance

Marketing Analysis of Target Corp

4922 words - 20 pages spite of the presence of various business challenges, promotion is one effective mean to increase product sales, enhance consumer support, and broaden market coverage. Similar to other businesses, Target Corp. uses all the possible ways to promote its products and build its name. In this case, the company promotes its products through online, print and television advertising. The partnership with AOL and is a great opportunity in

Custmer Value

3163 words - 13 pages understand and serve customers. Professors Elizabeth Demers of the University of Rochester and Baruch Lev of New York University confirmed these conclusions in a study last year. They found that while investors implicitly capitalize product-development and R&D expenditures, considering them assets that are potentially useful over a long period of time, they expense marketing and customer-acquisition costs. This apparent contradiction stems too

Assignment #1 Chapter 8 Case: Whole Food

1261 words - 6 pages opinion was a conflict escalator. The higher he went on that escalator, the more intense and serious the conflict and emotions became. According to the Case study, Mr. Mackey often equates a high level of assertiveness with aggressiveness. Although that’s the case with some people who are more assertive than average. “A person’s behavior tends to be more assertive or less assertive than that of a half of the population.” (Robert Bolton &amp

Organizational Behavior

2645 words - 11 pages particularly celebrities for a cause or to boost his revenue stream. Moreover, Milken knows how to tap into different emotions to get his agenda a cross in which he would not be as successful as he is despite falling from the top. Mini Case Study #3 A) There are several different perspectives on team effectiveness subscribed to by the practitioners in this article.  What are the similarities and differences of their approaches? AOL, the Marine

Case Write-Up Final – Ge’s Two-Decade Transformation: Jack Welsh’s Leadership

4003 words - 17 pages Jeremy Daniel Managing Change May 2, 2008 Case Write-Up Final – GE’s Two-Decade Transformation: Jack Welsh’s Leadership 1.) How difficult a challenge did Welch face in 1981? How effectively did he deal with it? What major lesson can we learn from his “first stage” that should be incorporated into our general “planned change” framework? Jack Welch faced several difficult challenges when he came into office in 1981. One of his primary

Workplace Violence

1753 words - 8 pages of workplace violence that are being highlighted in the news and media. Workplace violence is becoming one of the most talked about topics in organizational behavior. According to Nelson and Quick, “Organizational behavior is the study of individual behavior and group dynamics in an organization.” From this, one can see how any form of violence in a workplace can effect an organization and make one question the overall ethics and morals of the

Airasia Case Study

1474 words - 6 pages for operating a low cast carrier in Southeast Asia is the size of the market. Moreover, the untapped potential for growth in many countries within the region is great. As stated in the case study, some government regulations have been adjusted, lifted or cancelled and this has brought about a flood of new entrants. While government deregulation is viewed as good news, there are some limitations to the potential of intra-Asia flights. “A major

How The Internet Is Changing Our Social, Political, And Economical Lives

6322 words - 26 pages that over six million people on AOL looked at at least some of the Starr Report online, within 24 hours. This is just through AOL, but they represent about 75 percent of Internet subscribers in the U.S., at least at home. And if you look at this release of the Starr Report, it really became a defining moment for a couple of reasons. First, it really did bestow credibility on the Internet. It showed that this was an effective means for the

Pentagon Papers

1439 words - 6 pages Running Head: Pentagon Papers Pentagon Papers First Last DeVry University In 1967, a research project was started that would change the face of how the American citizens and media saw the United States Government. It was at this time that U.S. Secretary of Defense, Robert McNamara and a team of analysts who also worked for the Department of Defense had started preparing a classified study of the United States political and military

Related Essays

Case Study On Aol And The Future Of The Isp I Ndustry

2694 words - 11 pages processes move to the internet, the costs are reduced and benefits change. One of the internet's important benefits is its ability to reach a wide consumer audience. As a result e-commerce process will change to reach a new equilibrium point, perhaps become more elaborate to increase the mutual benefits for the market participants, creating a more efficient market.BibliographyAustralian Communications Authority (2001), "Case Study A: The Emergence

Aol Anaysis Essay

640 words - 3 pages The key changes that are taking place are the emergence of Internet; World Wide Web and the entrance of Microsoft Network into the commercial online industry. These key changes threatened the future prospects of AOL. The Internet World Wide Web limited the role of online consumer services companies, including industry leaders such as AOL, CompuServe and Prodigy, as middlemen between content providers and customers. On the Internet, every

Us Versus Aol Essay

698 words - 3 pages Identify and describe at least two forms of fraud techniques from your research. Include the identity of the government agencies that provide awareness for these types of fraud techniques. Tax fraud is something that seems to be on the rise these days, especially due to those that are completing their returns electronically, which is known as e-filling. With e-filing, evidence of fraud is difficult to find. There are no signed tax forms

A Study On The Hbr Article E Loyalty “Your Secret Weapon On The Web” By Frederick F. Reichheld & Phil Schefter

1357 words - 6 pages A Study on the HBR article E-Loyalty “Your Secret Weapon on the Web” by Frederick F. Reichheld & Phil Schefter Introduction This study is about the Harvard Business Review article “E-loyalty - Your Secret Weapon on the Web” written by Frederick F. Reichheld & Phil Schefter. In the first section, an overview and summary of the article are presented. The overview includes the main points and examples that are considered important. 1