Interestingly, with the rise of the Internet, a difference between old and new economy companies is even more blurry. .
Dr. Porter suggests that competitive forces should be fought by increasing switching costs, differentiation, networking and versioning. .
"Dial-Up Losses Are Steeper Than Expected, AOL Says".
Since 1985, AOL has come a long way. Its first strategy was to provide Internet service to the US through PCs. The company's next strategy was to branch out and provide service to people throughout the world. It did so by operating in different countries in different languages, yet AOL had always done this through one medium, the PC. The company aimed at building a global medium that changed the way people lived their lives. "AOL rocketed in the 1990s by providing simple dial-up connections, connecting millions of people in ways that spelled instant obsolescence for dating services, overseas airmail and out-of-town newspapers stands." (WSJ 5/19/03).
Now, customers are demanding more accessibility to the Internet, in fact, they want access anywhere in the world. At the CS First Boston Global Telecommunications CEO Conference, Steve Case, Chairman and CEO of AOL said, "People are starting to expect their televisions, telephones, CD players and all kinds of handheld devices to provide them with the same interactivity, and same range of choices, and the same convenience and control they can get on the PC's. What people want is simplicity and convenience.".
AOL has one crucial advantage over their competitors - a revenue stream comprising 35 million customers paying monthly subscription fees. These revenues allow "AOL Anywhere" to experiment with providing wireless applications to this immense user community without financial risk. AOL's "Anywhere Strategy" allows it to combine service, ease of use, and universal availability and to create a compelling wireless experience for users in all mobile and stationary venues.
