AOL, Amazon, Dell-how did these tech giants fare in the 90's and what future for startups in this era of mega-corporations

Index

• AOL
• Dell
• Amazon
• The Wireless Internet
• The Pressure of Mega Corporations on Startup Businesses
• Ways in Which a Startup Business Can Be Successful
• References

AOL

AOL is a major corporation and was originally founded in 1985 under the name Quantum Computor Services and did'nt offically become America Online until 1989. America Online not only kept people connected across great distances and provided internet accsess, it offered its own information services tailored specifically for the average AOL user. In 1993 AOL only had 500,000 member which then grew to over 9 million in just four years later in 1997. AOL now boasts over 34 million members worldwide and is considered by many as the best Internet consumer service. AOL has grown steadily since it was founded and is continuing to do so by constantly comming out with new technology and software.




Dell

Dell has become a major corporation in the computor sales business as well as other things. It has become well-known for producing computors from desktops to notebooks to handheld devices made to order for their customers. Dell went through some finacial difficulty in 1993 after a company expansion proved to be over-aggressive and they had a lot of problems with a new lap-top. After that the company was reorganized by Micheal Dell and new, more experienced executives were brought in. In the year 1999 Dell Corporation stated that they were

“The second largest manufacturer and marketer of personal computors in the United States and No. 2 worldwide.”⁵

At the end of the fiscal year in Feburary of 1999 Dell's sales were 18.2 billion dollars and the had more than 24,000 employees.

 

Amazon

Amazon was launched in 1995 and has become the biggest online retailer with over ten million customers worldwide. Amazon has branched off to sell more than just books. It now offers CD's,electronic equipment, toys, videos and even has it's own online auction site. Despite its amazing sucsess, Amazon has suffered some major losses throught the years through by investing in distribution systems and by buying other internet sites such as Pets.com. According to the head of the Internet bookseller, Mr. Bezos, Amazon may still be a short term company if it does not get more investments. Amazon may have to forgo short-term profit in order to ensure longetivity and stability.⁶

The Wireless Internet

Technology seems to be headed into the wireless Internet world and mega corporations want to get there first. Technology is advancing very quickly and companies such as Amazon, Dell, and AOL are moving with it. Millions of people spend hours a day on their computer surfing the web. The internet has an endless list of uses, it allows people to check up on news, and sports, to check the stock market, find out about the weather, play games, research, shop, entertain themselves, check their email and learn. The wireless Internet will enable people with digital mobile telephones, and Personal Communication Services (PCS) to surf the web, check email and communicate over the Internet without a modem, cable modem or DSL connection. In short it will allow people to use the Internet anywhere and anytime they want. There will no longer be any boundaries to the Internet. Staying connected is very important to people and the wireless Internet will prove to be a good investment because it gives people something they want and need.

 

The Pressure of Mega Corporations on Startup Businesses

If a mega-corporation does not have the know-how to keep up with the ever-changing technology it might buy a smaller company that does. The mega corporations of the old economy are seemingly going to dominate the “new economy.” It is proving difficult for any start-up companies to push their way to the top. Start-up businesses with a focus on wireless technology are having problems competing against the large number of users, brand name and high stock values of mega-corporations in this field. Large, well-established corporations are using their buying power to get the technology they want from smaller businesses that have the knowledge and capability to use and implement the technology. Internet companies need phone carriers with digital technology in order to provide the wireless internet to people. Phone carriers such as Sprint, Verizon Wireless, and AT&T don’t want to team up with a startup business because they don’t have the number of users that larger corporations do. Companies such as Yahoo, bring large numbers of users with them, which make it almost impossible for a startup company to make a deal with a large digital phone carrier.

Even though the future of start-up businesses does not look good, one should not give up all hope. Some smaller companies have made it to the top. Phone.com is a company with a specific wireless focus, which created the infrastructure, including the “micro browser,” used to surf the web from a mobile phone, used by most of the world’s wireless Internet providers. Phone.com developed the Handheld Device Markup Language which is used with the Wireless Markup Language which allows a person not only to use predefined tags but make up their own tags as well all while on a cel-phone or a PSC.The connections Phone.com made with many wireless carriers, mega corporations, have given the company the business and stability it needs to survive.



Regular Amazon Internet Page



Amazon Page as Seen on a Wireless Phone

Ways a Startup Business Can Be Successful:

Startup businesses directed at helping old-guard Internet companies may have a chance. If a business focuses on helping an existing company move their existing content or commerce they can build on to what already exists. As long as old businesses needs new technology (they constantly do) and the start-up business can provide them with a service they cannot provide themselves as effectively and/or as cheap then the startup business has a chance.

Technology is changing everyday and there is no way to say which companies will become successful and which ones will stay successful. If a startup company has the right software or comes up with the best technology first then they could become a major player in the “new era”. The best way for a startup business to make it in an era of mega corporations is to team up with existing corporations and use them to make it to the top. Jane Zweig, an analyst with research firm Herschel Shosteck Association sums up the problem of startup businesses in the era of mega corporations by saying,

“The jury is still out, but the big guys are putting a lot of money and muscle into this.” ⁷




References

1. http://electronics.howstuffworks.com
2. http://www.dell.com
3. http://www.aol.com
4. http://www.amazon.com
5. http://collection.nlc-bnc.ca/100/200/300/allan_publishing/history_personal_computer/eBook16.pdf
6. http://news.bbc.co.uk/1/hi/business/the_company_file/471639.stm
7. http://news.com.com/2100-1033-238937.html?legacy=cnet
8. http://www.smallbiztechtalk.com/news/archives/tips111901-bn1.htm
9. http://www.aol.com/nethelp/misc/history.html
   
   

 

 

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