Time Warner Analysis

Essay by EssaySwap ContributorUniversity, Master's February 2008

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America Online and Time Warner Steve Case chairman of AOL Time Warner portrayed the company's future business possibilities by stating his strategic vision, to build a global medium as central to people's lives as the telephone or television…and even more valuable. This statement is a refection of the primary objective that Steve Case wanted for AOL. Case's vision explained how important it was to keep the medium of the Internet strong and healthy not only in the market place, but also in the homes across the globe to the company. The well-conceived, well-worded vision statement let you know where AOL and the Internet were going. Cases clear communicating of AOL's strategic vision helped his company gain strong strengths. Which had payoffs that provided a beacon that senior executives and lower-level management could use to set objectives that would be in sync with the company's overall strategy. A strategy that helped set a clear understanding of what AOL was out to do in the future.

At the same time foreshadowing a big merger between a new and old media companies. Which for AOL and Time Warner was a great and logical move to become stronger.

Occasionally a company comes to the point in which it must change or alter its prospects and must make a radical modification of its strategic course. Reaching its strategic inflection point, AOL went through such an instance when it switched from charging its customers hourly rates to a flat-rate pricing format. The move made AOL stronger as a company. Making the Internet more affordable to customers it received over 1.2 million new members in the last quarter of 1996. An increase of usage happened almost overnight having a positive effect on time spent surfing the net. AOL members reached 66 million hours collectively online. The number...