In the following report, we will demonstrate the key benefits and potential problems that have developed as a result of the merger. In an effort to recognize and implement potential strategies, we have offered suggestions as to how the local AOL Time Warner can utilize its resources most efficiently. .
The primary benefit of the AOL Time Warner merger is the accessibility of AOL's customers to Time Warner and vice versa. This mutually beneficial relationship encourages each company to market its extensive product and service mixes to the other's customers. AOL Time Warner will also be able to bundle the products and services together to entice customers into purchasing AOL Time Warner's version of ones they might already have. Once the customers switch to AOL Time Warner's products and services, it hopes that the customers will have a sense of brand loyalty for its products. .
Other important benefits both internationally, nationally and locally include the following: .
• Revenues are projected to rise .
• Facilitate creative thinking by combining the conservative nature of Time Warner with AOL's innovation. .
• One stop shopping .
• International business will account for over one third of revenues .
• Improved management and corporate culture .
• Technological advances .
Although AOL Time Warner benefits from the merger, there are also a number of potential problems. It must be aware of these problems in order to anticipate what it could do to prevent the problems from occurring. AOL Time Warner will be able to develop strategies and solutions that will ensure future success and avoid potential problems.
AOL Time Warner's principal activities consist of six businesses: AOL, Cable, Filmed Entertainment, Music, Publishing and Networks. The AOL business consists of worldwide Internet services, music properties and high-speed broadband services.