AOL Expansion in the Asia Pacific

 
 
 
 
AN INTERNATIONAL MARKETING PROJECT/BUSINESS PLAN FOR AOL EXPANSION IN THE ASIA PACIFIC REGION

The international marketing opportunity for AOL is the entry into the Internet market in a nation with higher growth potential than is available to the Company in its existing markets. Such markets hold risks for the Company because they are not developed.

International Market Selection and Justification

The nation selected for an AOL international expansion is India. While Internet penetration is low in India and likely will remain comparatively low for some time, the vast size of the Indian population provides ample opportunity for Internet growth.

International Market Entry Recommendation

The recommendation is for AOL to acquire several of the 185 functioning ISP companies in India. The acquisition of several of the small Indian ISPs will allow AOL to develop a national Internet service in India, which is something that does not now exist in the nation.

Key Aspects of Marketing Strategy Recommendation

One key aspect of the marketing strategy for AOL's entry into the Indian Internet market is for the Company to pursue a market share building pricing strategy. A second important aspect of the strategy is for AOL to offer its Internet access and content as a bundle, as opposed to offering the services separately.

America Online (AOL), the Internet division of th


     
 
 
 
    

 

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nicians, and programmers must be present to support Internet growth and the efficient and effective functioning of Internet-based companies: Indonesia and the Philippines do not meet the minimum requirements for relevant human resources development Adequate supply levels of telecommunications equipment at competitive price levels are essential for the development and growth of Internet use: Each of the six Asian nations meet the minimum requirements related to telecommunications equipment supply and pricing Economic growth that translates into rising median household incomes is necessary to support the expansion of the Internet user base, and, in turn, the growth ISP and Web Portal companies: Thailand and Vietnam do not meet the minimum requirements in relation to economic growth The degree of state control that governments attempt to exercise over (a) access to and use of the Internet by individuals and organizations and (b) the operations of ISPs must not be so excessive that Internet growth is stifled: Each of the six Asian nations meet the minimum requirements related to the degree of state control applied to Internet operations The existing level of Internet use must not (a) be so high that growth prospects for new ISP an

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