I am trying to put together an analysis of the company AOL: how it was established and kept on growing. Then, what took place that made it decline. I would like to describe that decline which could have been due to poor management decisisons or just simply the overall market has changed.
Finally I would like to discuss if AOL was able to successfully manage the change and turn around. How did they do it and why? If it did not, I would like to give recommendation as the CEO of what needs to be done. Any help would be greatly appreciated.
How AOL was established and kept on growing?
AOL was marketed for the non-technical users and this led to its establishment. People who were not familiar with computers became its users. The PlayNet system licensed by AOL and became the first online service to need the use of proprietary software, instead of a terminal program. AOL was the first online service to offer graphical interface. This made it stand out as a user friendly company. The Chat Room allowed a large group of people with common interest to hold discussions at the same time. These were divided into auditoriums, conference rooms and private rooms. When AOL added access to USENET its sales surpassed Genie sales and it also passed Prodigy and CompuServe. Even though earlier, AOL charged on a monthly basis. Later, it charged on a flat basis. This gave the thrust that AOL needed and the number of users of the service increased to 10 million people.
This was the time when poor management took place. After 1996, the AOL became unable to service its base and the users became dissatisfied because of always busy ...
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