Aol Time Warner Merger

Topics: Time Warner, AOL, Dot-com bubble Pages: 4 (1205 words) Published: April 11, 2011
versailleAOL Time Warner Inc. – A Bad Idea from the Start? 1. What are the opportunities and threats facing AOLTW (PESTEL analysis)? Pestel analysis:
POLITICAL|  |  The antitrust law is rising.|  The government wants to have a more powerful control to avoid monopoly.| ECONOMIC|  For AOL it was the top of the internet boom.|  The economy start to be hard and slow, as show the problem that warner is facing.| AOLTW will take the explode of the internet bubble really bad and problem will start | SOCIAL|  With the boom of the internet the new companies are really young and dynamic created a new corporate culture.|  The old media as Warner (television, movie and press) is facing some financial trouble, and it’s an old fashion corporate culture.|  Two different culture are facing and also two different type of consumers the old and the new generation.| TECHNOLOGICAL|  AOL one of the first national dial-up internet service providers (ISPs)|  The broadband revolution start (cable internet).|  the internet technology is growing fast, you can be lost if you don’t follow the train.| ENVIRONMENTAL|  |  |  The word of the media change, internet takes a larger place on the media and communication word.| LEGAL|  AOL tries to enter the broadband market.|  FCC change Broadband regulation.|  |

The greatest opportunity for AOTW is the combination of two types of media which if the work together can bring change to the vision of the both media. The biggest threats are that the technology is moving really fast and the economy was at his best, but it cans also changing really fast.

2. Identify Porter’s industry analysis forces and how each force pertains to AOLTW. Are these dynamics favorable or problematic for AOLTW? The five forces:
* The threat of the entry of new competitors: AOLTW market is really full, there a lot of barriers of entry because of the power of the firm already in. So the threat of...
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