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Words: | Submitted: Tue Jun 20 2006
... us to analyze AOL's business risks and opportunities, and evaluate its aggressive growth strategy through the study of business models. Issue Analysis Labeled as an aggressive growth business in IT industry, AOL's up-dated unveiling is not out of our expectation. However, its business strategy should be carefully analyzed through the following two dimensions. The first one is operation risk, which includes two perspectives in AOL's case. AOL provides value-added search to benefit its members as well as non-members without raising its service fee. Its capability is firstly taken into question. The purpose of investing in technological development is doubtless to generate multiple revenue streams. AOL has experienced unwise competition strategy of providing free service, which caused failures because of its inability to handle growing demand that resulted in heavy lawsuits. Once again, AOL extends its new search efforts by keeping the charge of previous costs. Moreover, in order to retain old customers and ...
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