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Alliances with Suppliers to provide Customers with one-stop shopping Develop massive customer base Create an easy internetemail service Create non-financial costs to customers to dissuade them from moving to competitors Profits mater more than growth Make cost to switch not financially practically Make it financially difficult for competitors to contend with AOL Provide on-line features with special offers to AOL subscribers Attract suppliers by intangible benefit of association with AOLs brand name Provide user-friendly access Forty percent of online traffic is from AOL Users are watching less TV therefore advertisers are spending more on internet advertising Reduced costs by eliminating inefficient units Reduced costs by lowering AOLs cost of connect time Reduced costs to acquire new subscribers Leverage AOLs massive subscriber base for all it is worth Generated guaranteed future revenues New AOL software could save up to 40 million in customer service costs Creating a personalized digital newspaper Creating competition for WebTV Not customer service friendly Internet service occasionally has outages and email glitches The telcos and cable companies are targeting AOLs customers Analysts predict AOL will lose market share Lead companies would rather invest in their own websites than AOL advertisingThe key strategy is leveraging the brand name of AOL AOL adds more than 10000 users a day Once consumers associate Internet service with AOL then competitors will not be able to enter the market AOL needs to form more alliances with suppliers to ensure guaranteed financial revenues for many years AOL needs to strategize with the cash surplus and focus on new technology to eliminate system outages and email glitches If AOL users experience to many difficulties then they will surrender the financial and nonfinancial costs to mover to a more sophisticated Internet provider20 million families rely on AOL to be their Internet provider This is a powerful market of consumers who are influenced by convenience This merger is an attempt to lock in customers to AOL with the convenience of
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