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Technology Stocks : America On-Line: will it survive ...?
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To: James F. Hopkins who wrote (1121)1/23/1997 9:34:00 PM
From: Stratajema   of 13594
 
James, your suggestion for AOL to reinvent itself into decentralized franchises shows creativity and cleverness. (From your thought patterns I suspect you might be a management consultant or have many years of "real" business experience.) As we know, franchise buyers are essentially providing working capital to the franchisor, and this would desperately give AOL the cash it needs. It would also give it decentralized system access that would be isolated against total system shutdowns and slow access/connection problems. AOL content could still be kept centralized for storage/access economies of scale. The trick is to find a balance regarding the max. or min. size of each franchise.

If I were running AOL I would give this idea considerable thought as a remedy since the current strategy will sooner or later end in failure. Unfortunately, behemoth companies like AOL don't think creatively and are trying to compete on price rather than by innovation.

Regards,
David
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