AOL's success as a leading internet company, despite its late start in 1985, is remarkable. Its resilience in a competitive market is attributed to a strong business model. Key elements include a visionary leader in Steve Case, a clear and compelling vision, a passionate team, a willingness to innovate, a user-friendly product, and a customer-centric approach. AOL's growth, with a 4000% increase in subscribers from 1993 to 1999, serves as a blueprint for success in a volatile business environment. Emulating AOL's model could potentially lead to similar success.
America Online, which began as Quantum Computer Services in 1985, has been a pioneer in the online service industry. Initially, it provided games to users of Commodore computers. Steve Case, who joined the company's predecessor, Control Video Corp., as a marketing manager in 1983, witnessed the company's financial struggles firsthand. After a restructuring and refinancing, Quantum was renamed America Online Inc. in 1991. The company's business encompasses interactive services and media, internet brand development, internet technologies, and e-commerce services. With over 22 million subscribers, AOL boasts a user base nearly ten times larger than that of its closest competitor, Microsoft's MSN. AOL's international presence spans 15 countries and is available in seven languages. The corporate headquarters is strategically located near Washington Dulles Airport in Washington D.C. As of January 2000, the company employed 12,100 people. The fiscal year 1999 was particularly successful for AOL, with revenues reaching $4.8 billion, which was more than twenty times the combined revenues of the next 20 internet companies. The company also reported a profit of $762 million for the same period. AOL's market capitalization as of January 1, 2000, was approximately $165 billion, surpassing any other media company globally. Since its initial public offering on March 19, 1992, AOL's stock has appreciated almost 69,000%, a record performance for any publicly listed stock in the U.S. during the 1990s. The company's portfolio includes internet service providers America Online and CompuServe, portals Netcenter and AOL.com, services like ICQ, Instant Messenger, Digital City, and MovieFone, as well as browsers Navigator and Communicator, and music services Spinner Networks and NullSoft. AOL's achievements are noteworthy; its market capitalization exceeds that of the entire U.S. newspaper industry combined, and it has more subscribers than the combined readership of Time, Newsweek, and US News & World Report. Most AOL users log on for more than an hour each day, and around 40 percent of American consumers connect to the Internet using AOL. In the weeknight prime time slot, AOL has more users logged on than the viewership of CNN or MTV. Steve Case's vision of a wired world has been a driving force behind AOL's success, earning it the nickname 'the cockroach of cyberspace' for its ability to survive and thrive amidst larger corporate competitors. Case emphasizes that technology is merely a tool to enhance information access and communication. He envisions AOL as a service company focused on providing content, commerce, and online communities, with aggressive marketing strategies. The future of the Internet, according to Case, is a new life form altogether, and he believes that the interactive medium will become an essential part of everyday life for millions worldwide. In 1995, Case speculated on AOL's future, suggesting that the company could become as influential as Wal-Mart, Home Depot, or Microsoft, despite the looming competition. He also predicted that AOL would play a significant role in connecting most Americans to the Internet, offering a 'virtual broadband service' to those with slower modems.
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