January 1999 (Revised March 2001)
Case
HBS Case Collection

MindSpring

Format:Print
| Pages:29

Abstract

In a business environment where Internet Service Providers (ISP) has become increasingly commodity-like, Charles Brewer, founder and CEO of MindSpring, the nation's sixth largest ISP and the recognized leader in customer satisfaction, ponders a proposed merger with Earthlink Network, Inc., the nation's fifth largest ISP. Competitors are offering a rich variety of products and services (AOL), ease-of-use and ease-of-access (MSN), and even free access (NetZero). MindSpring's annual revenues grew over 600% from 1996 to 1999, and Brewer knows it is important to maintain momentum. The issue of growth raises a number of strategic and tactical questions: How should MindSpring achieve growth and with what trade-offs? How should MindSpring and Earthlink merge its two cultures in the newly proposed merger? Was MindSpring's retaining of customers through superior service still the best strategy? Brewer would need to find ways to grow the number of subscribers but also new ways to differentiate the products of the newly combined MindSpring and Earthlink from other ISPs.