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AOL TIME WARNER * This case study was prepared based on the material contained in “AOL Time Warner” by Arthur A. Thompson and John E. Gamble, which was published in Strategic Management:Concepts and Cases/ Arthur A. Thompson, Jr., A.J. Strickland, III. – 12th ed. INTRODUCTION America Online is the world’s most popular online service. Why do more than 12 million people subscribe to AOL? The many reasons include availability, simplicity, and content. It provides subscribers a variety of interactive features – electronic mail, Internet access, entertainment, news, sports, weather, financial information, electronic shopping, and more. It greatly increased competition for market share, because almost everything AOL has to offer can be found in some form on the Internet. The increased demand yields opportunities for dramatic growth, but it also causes many difficult, technical, financial, and managerial challenges. The pace of change in fiscal year 1997 had AOL scrambling. AOL’s primary market is the home computer user, and that market is still growing. Their new fundamental purpose and passion has been to create a new medium that is easy to use and as accessible as the