AOL Major oppotunities ThreatsStrengths and Weaknesses?

Answer 1

AOL Strengths

ISP services – AOL offers more than a portal, they offer internet connectivity. AOL has 13 million members and offers ISP services in more than 1500 cities worldwide. This enables AOL to point all members to their portal when they logon to the Internet via AOL.

Niche Market – AOL is going after the household market. A phenomenon the company calls “AOL Households” now exist. Families use AOL to navigate the Internet in a “safe” environment. This environment gives parents lockout options.

Brand recognition – AOL was one of the first “online” companies ever. They started a GUI BBS and added the Internet as an extended service. They have always had an online community and are now offering that on the Internet.

AOL Weaknesses

Past outages – AOL once over-subscribed their ISP services. They are known for having “busy” signals and poor service. It is difficult to rebuild this image. It keeps some from using their portal.

Image – Many experienced Internet users will not use AOLbecause they view it as an online service. AOL software is designed for novice users and was not the first to the Internet. Internet “power” users prefer other portals over AOL.

Innovation – AOL does not create new Internet products, it acquires them. Often acquired technology companies lose their talented software engineers and the product suffers. This could happen to AOL with the acquisition of Netscape and ICQ. This could hurt the AOL portal long-term.