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America Online

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The computer revolution took place rapidly over the last twenty years or so and is continuing today at an increasing pace. The arrival of the computer age was so rapid that we have not yet managed to cope with all the changes or with many of the consequences. Computers have been made smaller and more powerful until many people have on their desk at home a computer more powerful than the largest mainframe of the 1950s. These advances have been made by a number of new and developing companies, notably those in the so-called Silicon Valley near San Francisco. Different companies develop different advantages, however, in terms of the specific design of their components and other features developed through extensive and costly research and development. Among the services offered for the computer are online services enabling the consumer to access distant databases and to perform a number of tasks from home by use of telephone lines to connect the home and business computer to larger computers offering a variety of services and features. America Online is one such company.

America Online (AOL) is one of several online computer services that have developed in the last decade and that serve a broad customer base with a variety of services accessed by modem. AOL has over one million subscribers at this time. The company started early in this decade and had less than ten percent of the market share, but it hoped to improve that picture by providing

. . .
one year to reach 1.5 million (CompuServe has 2.6 million at this time). The biggest challenge AOL sees in the immediate future is from Microsoft, which intends to launch its own online service later this year, perhaps connected to the new version of the Windows operating system it is introducing at the same time (Kupfer 16). Case has given his own assessment of why his company has been so successful, beginning with reference to the company's strategic alliances with important partners such as Sprint, Tandy/Casio, Apple, and various publishers such as CNN, Chicago Online, the Chicago Tribune, and so on. The initial success of AOL came from an alliance with Commodore, giving Commodore a way to differentiate itself from its rivals. The formula worked for both companies, and similar deals would follow with Tandy and Apple. An estimated 11 million personal computers are in use and are equipped with a modem, but only a third of these use on-line services today. Case sees this potential market as a major opportunity (Eng, Schwartz, and Baig 152). Another reason for growth offered by Case is the determination of which niches to fill by the service, and Case says that the company sees itself as a series of specialized magazines cate
. . .

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Approximate Word count = 1907
Approximate Pages = 8 (250 words per page)

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