Time Warner and AOL Merger Essay

On the other hand, the company’s products would be more seen by consumers, which means the demand for their products probably increase.

Promoting this product will boost sales and garner more customers for both Allround and the drugstore

Any change in the factors that make up the macro-environment can have a direct impact on the Comcast Corporation. These factors can affect the Porter Five Forces that shape their strategy and their competitive advantage over other firms.

In return, these companies must give preferential treatment in promotion and the like to Microsoft. One example is AOL's new 4.0 browser is specially designed to work best with the Microsoft Internet Explorer 4.0 browser. Much of the increase in AOL's clientele base can be attributed to the combined efforts of Microsoft and AOL. Microsoft is not only working with ISP's, but also with companies that build and maintain web pages and servers.

The combined companies believe that working together will give more value to the brand then Wendy’s would of generated independently.

While the distribution of the product fits the target market, it also harmonizes well with the marketing mix. The place where the product is distributed is highly important (Perner, n.d.; Place, n.d., Ramsey, 2012). Products gain a

The spillover effects that hit the consumer market eventually accelerate the process of positioning the product image in their minds.

“A joint venture is a legal organization that takes the form of a short term partnership in which the persons jointly undertake a transaction for mutual profit. Generally each person contributes assets and share risks. Joint ventures are also widely used by companies to gain entrance into foreign markets.” (Cornell University Law School) In way to engage ones customers with new stuff, joint venture has become paramount in satisfying customers with variety and also infuse modernization and advance technology. An example is the introduction of the popular video streaming website “HULU” created by a joint venture in the year 2008 by NBC Universal Television Group, Fox Broadcasting Company and the Disney –ABC Television Group. This venture

Time Warner INC is considered one of the biggest conglomerate. Starting out as a publishing company that now own networks like HBO, AOL, Cartoon Network, CNN, TBS, etc. This company also owns magazines such as Sports Illustrated, TIME, and PEOPLE. According to Lutz (2012), “178 million unique users read Time Warner News every month” (Lutz, 2012). Media conglomerates have both advantages and drawbacks. One of the advantages is that they have a huge power base to push their agenda with minimal government control but must be ethical in their approach. One of the drawbacks is most of these conglomerates are more concern with sponsors than their

As a mass media corporation, AOL is always focused on providing the customers with network services which are convenient and easy to use, and this is exactly what Stephen Case looking for, who was the founder of AOL. In 1990s, AOL has already took steps in online market and gained huge profits, they put lots of advertisement online while not so many companies noticed the great potency of internet, they cooperated with Amazon and Barnes

It gives the consumer an alternative to buy products that have still not saturated the market.

In order to strengthen its position within the industry, the managers at Time Warner had to complement some of its usual generic strategy with a new strategy by using product differentiating. They need to provide customers with a service or product that will attract them to TW and away from the competition. There was a strategy within the strategy which, is why Time Warner took an only a minute stake in the Hulu company. This was because Hulu’s governance structure is unsteady and TW did not want to add to it by becoming an equal partner with the three other major

• One caveat is that people who say that they intend to purchase a product do not always follow through, so the numbers resulting from this activity are almost always optimistic. Still, the numbers provide you with a preliminary indication of how your most likely customers will respond to your potential product or service offering.

Further, Guido et al., suggested consumers could be influence to purchase the product being advertised as a result of the endorsers’ perceive credibility.

• The company should find effective way to communicate about the product in public to boost up the sale of existing product but this plan does not work every time and it can be tricky also.