Alliances with Suppliers to provide Customers with "one-stop shopping"
Develop massive customer base
Create an easy internet/email service
Create non-financial costs to customers to dissuade them from moving to competitors
Profits mater more than growth
Make cost to switch not financially practically
Make it financially difficult for competitors to contend with AOL
Provide on-line features with special offers to AOL subscribers
Attract suppliers by intangible benefit of association with AOL's brand name
Provide user-friendly access
20 million families rely on AOL to be their Internet provider. This is a powerful market of consumers who are influenced by convenience. This merger is an attempt to lock in customers to AOL with the convenience of "one-stop shopping". Customers will be able to watch TV and email their friends about a particular program at the same time. Customers will also be able to surf the Internet during commercials of their favorite TV show. This merger is another step towards AOL's strategic goal of creating non-financial costs to deter customers from switching to another Internet provider and simultaneously, AOL will be able to create new marketing arenas in order to attract suppliers to form alliances with AOL.
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