Professional Documents
Culture Documents
America Online
Brief History
• 1983:Steve Case worked for Control Video, an online gaming services firm
• 1985:Company changed its name to Quantum Computer and launched an online service named Q-Link
• 1989:The company expanded upon Q-Link with a new nationwide service named America Online
• 1991:The company itself has been named America Online
• 1992:The company’s initial public offering
• 1993:Steve Case became CEO
• 1994:Number of subscribers reached 1 million
• 1995:AOL Europe had been created
• 1996:Number of subscribers reached 5 million
Strategic formulation: A brand company, committed to continuously innovating, growing, and investing in brands and experiences that
inform, entertain and connect the world
AOL was a pioneer in creating GUI chat services, interactive online gaming and the chat room concept
Products: Online Portals, Web browsers, Instant Messengers, Online Gaming, Video Streaming
On the Corporate Level, the company follows a diversification strategy, both in related and non related business
On the Business Unit Level, the company follows Broad differentiation strategies
The company implemented its strategies from within by relying on its own knowledge and resources, and from outside by relying on mergers,
acquisitions and mutual agreements
The company was able to achieve the following
• Stock value had grown 50000 percent since the IPO
• The company bought its main competitor CompuServe in 1998
• The company at its peak had 30 million subscribers
• The company became the premier ISP in USA
AOL had been operating in a High Technology market, still in growth phase
Internet Technology had been young, with very fast growth and development ahead
AOL is a high technology driven company, with a culture of risk taking, innovation and flexibility
The company had Adhocracy structure where support staff are the most powerful( e.g :R&D )
Time Inc
Brief History
• 1922:Henry Luce and Britton Hadden created Time Inc, a publishing firm
• 1923:Company published its first magazine, Time
• 1930-36:Launched Life and Fortune magazines
• 1954-74:Launched Sports Illustrated, Money and People
• 1970:Company entered the cable television market
• The company also founded HBO, a premium cable service
WarnerBros
Brief History
• 1923:The Warner brothers founded Warner Brothers Pictures
• 1928:Produced the first full length film with sound
• 1929:Introduced Color films
• The company became one of America’s largest music producers and cable television operators
Time Warner
Brief History
• 1989:Time Inc and Warner Communications merged
• 1996:The company acquired Turner Broadcasting System
• The company became the 2nd biggest cable company in United States
Products: Books, Magazines, Cable TV services, Music, Film Production and Distribution
On the Corporate Level, the company follows a diversification strategy, both in related and non related business
On the Business Unit Level, the company follows Broad best value strategies
Company operated in mature technology market
• 10 Jan 2000: Steve Case and Gerald Levin announced the merger
• AOL would pay $183bn in Stock for Time Warner
• AOL would assume $17bn of Time Warner’s debt
• AOL would own 55% of Time Warner
• Stock combination value was $350bn
• AOL was the 1st internet service provider in the US
• Time Warner was the 2nd Cable company in the US