This analysis of America Online (AOL) will detail some of the strengths and weaknesses of that company, and consider some of the strategies that its management has undertaken. The analysis will also consider some of the problems that the company faces, and suggest possible solutions for those problems. AOL is a complex company, and it is essential to describe some parts of the business in detail.
AOL is a division of AOL Time-Warner, which is a media conglomerate. AOL is headquartered in Dulles Virginia, and as its primary business is an Internet Service Provider with more than 30 million online customers, who pay a monthly fee of $24 for the service.
America Online engages in interactive services, Web brands, Internet technologies and electronic commerce services and its primary operations include two worldwide Internet services (AOL and Compuserve); "AOL Anywhere" services; Netscape; AOL local brands such as Digital City, AOL Moviefone and MapQuest; AOL messaging services such as ICQ and AOL Instant Messenger; and AOL music properties such as Spinner.com, Winamp and SHOUTcast. Utilizing its "AOL Anywhere" strategy, key services, features and content of the AOL service are available through multiple platforms and devices ("AOL Launches" 2000, 12).
Through iPlanet E-Commerce Solutions, its strategic alliance with Sun Microsystems, Inc., America Online also develops and offers easy-to-deploy, end-to-end electronic commerce and enterprise solutions for companies operating in, and doing business on the Internet (Annual Report, 2000, pp. 17-19).
Internal Environment -- Strengths and Weaknesses
A. Corporate Office -- The company has a chairman and CEO (Barry M. Schuler) and two Vice Chairmen report directly to him. The vice-chairmen are: Janice Brandt (also chief marketing officer) and Ted Leonsis (also new products officer). Reporting to the Vice Chairmen and the CEO is the President, Raymond J. Oglethorpe, who h...