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Horizontal and Vertical Relations

Question 32

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Horizontal and Vertical Relations. America Online, Inc., is a provider of online services to consumers in the United States. AOL offers subscribers a wide variety of services, including electronic mail, conferencing, news, sports, weather, stock quotes, software, computing support and online classes. These services can be accessed from a range of personal computers using AOL's proprietary software. Microsoft Corp. develops, manufactures, licenses, sells, and supports a wide range of software products, including operating systems for personal computers and servers; server applications for client/server environments, business and consumer productivity applications; interactive media programs; and Internet platform and development tools. Microsoft also offers online services, sells personal computer books and input devices, and researches and develops advanced technology software products.
A. Describe how AOL and Microsoft share important elements of a vertical relationship.
B. Describe how AOL and Microsoft have important elements of a horizontal relationship.

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