An Introduction to the Various Business Strategies in the United States Essay

A. Business Strategies1. Strategic Objectives Brand Name Recognition Alliances with Suppliers to provide Customers with "one-stop shopping" Develop massive customer base Create an easy internetemail service Create non-financial costs to customers to dissuade them from moving to competitors2. Cost Strategy Profits mater more than growth Make cost to switch not financially practically Make it financially difficult for competitors to contend with AOL3. Differentiation Strategy Provide on-line features with special offers to AOL subscribers Attract suppliers by intangible benefit of association with AOL's brand name Offer premium services Provide user-friendly access4. Innovation Strategy AOL Direct New AOL software AOL TVB. Successes Forty percent of online traffic is from AOL Users are watching less TV therefore advertisers are spending more on internet advertising Reduced costs by eliminating inefficient units Reduced costs by lowering AOL's cost of connect time Reduced costs to acquire new subscribers Leverage AOL's massive subscriber base for all it is worth Generated guaranteed future revenuesC. Uses of Technology New AOL software could save up to 40 million in customer service costs Creating a personalized digital newspaper Creating competition for WebTVD. Problems to Overcome Not customer service friendly Internet service occasionally has outages and email glitches The telcos and cable companies are targeting AOL's customers Analysts predict AOL will lose market share Lead companies would rather invest in their own websites than AOL advertisingE. RecommendationsThe key strategy is leveraging the brand name of AOL. AOL adds more than 10,000 users a day . Once consumers associate Internet service with AOL, then competitors will not be able to enter the market. AOL needs to form more alliances with suppliers to ensure guaranteed financial revenues for many years. AOL needs to strategize with the cash surplus and focus on new technology to eliminate system outages and email glitches. If AOL users experience to many difficulties, then they will surrender the financial and nonfinancial costs to mover to a more sophisticated Internet provider.F. Time Warner Merger20 million families...

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