This paper stresses that Amazon.com and AOL may belong to different industries, they similarly thrive via online business which has its own rules of determining which would likely succeed in business. The expansion and diversification strategy adopted by Amazon.com coupled with strong customer relation management has kept the company growing while that of the AOL joining Time Warner might have confused its name with another industry, that of Time Warner. In a deeper sense however, downfall of AOL appeared to have been caused by not responding to need of customers very quickly as that what had been done by its competitors. AOL decision only decided to make free-email account lately while its competitors, Google and Yahoo have already done much earlier. This means that the online business is a game of innovation and if you don’t innovate, you will be left behind.
This report makes a conclusion that CRM has allowed Amazon.com to gather information about their customers, allowing it to design advertisements and promotions to appeal to said customers individually thereby cutting on advertising cost and thereby increasing profits. AOL committed a grave mistake in not responding to cancellation requested by customers. In trying to retain customers, it did the wrong way by even delaying or denying request for cancellation and said company practice was brought to public by CNBC to their disappointment and defeat because as the company believed, it will really lose a lot of its customers because of said errors. ...Show more