Yahoo! Inc. Strategic Analysis Essay
3099 WordsSep 14th, 201213 Pages
Executive Summary 3 Introduction 3 Company Overview 4 Mandate 5 Stakeholders 6 External Analysis 6 Competitive Forces 6 Macro Environment 7 Internal Analysis 8 Appendix 10
Yahoo! Inc. is one of the oldest and most well-known Internet content providers. Yahoo! Inc. offers one of the most diverse Internet websites. It is believed that by expanding Yahoo!'s services and expanding broadband access, Yahoo! customers will stay on the website and spend increasing amounts of time and money. Yahoo! Inc's biggest obstacle lies in its competition in the form of…show more content…
Yahoo! Inc. also acquired Associated Content, an online publisher and distributer of original content that enables users to publish their content on any topic and distributes that content through its Website and content partners. This acquisition extends Yahoo!’s ability to provide high quality, personally relevant content for the benefit of both users of Yahoo! branded sites and advertisers.
2010 also boasted a healthy year for Yahoo! in terms of it’s business evolution and communication initiatives. For one, Yahoo! Mail Beta, a faster and more social communications experience that allows users to navigate easily and organize their inbox, browse photos and videos, more efficiently search for emails and benefit from improved spam protection was launched. Also launched was Yahoo! Messenger Beta, which allows users to play social games from publishers including Zynga Inc., ELEX and OMGPOP, share their status across networks, and view, comment on, and “like” updates from Yahoo! Pulse, Flickr, Facebook Inc. and Twitter Inc. – all from their instant messaging client.
Although 2010 was a very successful year for Yahoo! Inc., 2011 brought on many reviews in Board and Management, testing of business model evolution, trial and error on technological infrastructure choices, and many financial shortcomings overall for the company. These
The company under consideration Yahoo! Inc. (referred to hereinafter as
is one of the world’s
largest online network integrated services provider with a combined user base in excess of 500 million.Yahoo provides a whole host of network based services, however over its existence of past 17 years,many such similar service providers have shored up especially after the dot com boom. Some of thesenew players took the path of specializing in a particular form of service while others brought a wholegamut of new services with the old ones.World Wide Web has grown exponentially over the past years giving rise to the intense rivalry betweencompanies involved. This intense rivalry especially with the likes of Google is one of the biggestchallenges for Yahoo.In this case study, we try to first understand the backdrop in which the company is operating including itsmission and vision for the future, its ultimate goals and philosophy regarding its business, its businessmodel, external
analysis based on Porter’s five forces model
and finally internal analysis based ondistinctive competencies, competitive advantage and profitability.This document is prepared based on the information provided in the
case, “Yahoo” (Jones, 2007) as
as numerous external sources such as Yahoo’s website and its annual reports circa 2011.
Yahoo was incorporated as an Internet service provider that would serve both the users and the businessesglobally. Yahoo was founded by two Stanford PhD candidates in January 1994 named Jerry Yang andDavid Filo. However,
today Yahoo has become one of the world’s largest global online network
integrated services provider. Yahoo today has a user base of 500 million per month. It has a presence inmore than 30 countries worldwide and provides services in more than twenty different languages. Thecompany presently operates out of Sunnyvale, California in the United States.
Yahoo first went public on the NASDAQ (YHOO) in the April of 1996. The stock had opened for $ 13.00
per share of the company and by the very day’s end; it had reached a
closing of $ 33.00 per share (YahooOverview, 2012). In Dec 1999 the company was also added to the S&P 500 index.Recently, in early 2012, Yahoo had appointed Scott Thompson as the new CEO who was then replacedby Marissa Mayer in the month of May (Perez, 2012). Also in June 2012, the company also hired the