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This work offers a summary of the book "IT'S A WIRED, WIRED WORLD: Business the AOL Way" by David Stauffer.
David Stauffer is a business writer, with articles published in the Wall Street Journal, Harvard Management Update, Across the Board and other business periodicals. Mr. Stauffer, who heads his own firm Stauffer Bury, Inc., is also the author of Nothing But Net: Business the Cisco Way.
AOL is the world's most successful Internet company and the most valuable brand name of the digital business era.
In It's A Wired, Wired World, Stauffer argues that the fact the company has been able to achieve preeminence in such a highly competitive marketplace is impressive, considering it didn't even exist until 1985. The company's longevity and ability to move forward in the face of intense competition is unmatched.
Clearly, something about the AOL business model works. Exactly what the "secret sauce" is may be subject to speculation and further analysis, but Stauffer identifies 6 elements of the AOL business model.
In short, AOL is a great template for how to succeed. Anyone who develops a similar business model, and who follows the same principles of success AOL uses, stands a betterthaneven chance of enjoying comparable success.
The AOL Fact Sheet
AOL began in 1985 as Quantum Computer Services, an online service offering games to Commodore computer users. Steve Case (the current CEO of America Online) had joined Control Video Corp., the predecessor of Quantum, as marketing manager in 1983 just as the
Control Video was restructured and refinanced as Quantum in 1985, and then renamed America Online Inc. in 1991.
Interactive services and media
Internet brand development
Internet technologies
e-Commerce services
AOL currently has over 22 million subscribers – around 10-times
the number of subscribers of the next largest online service provider, Microsoft’s MSN.
AOL offers its service in 15 countries and seven languages.
AOL’s corporate headquarters is located near Washington Dulles Airport, Washington D.C.
12,100 as of January 2000.
For fiscal 1999, AOL had revenues of $4.8 billion – more than
20-times the revenues of the next 20 Internet companies combined.
For fiscal 1999, AOL achieved a profit of $762 million.
AOL’s market value on January 1, 2000 was approx. $165 billion – a larger market capitalization than any other media company in the
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