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
Strategic Analysis of Yahoo Inc!
5948 WordsApr 18th, 200924 Pages
1) Yahoo! Inc. The Internet Giant
Following the success of Netscape and its web browser, Internet became a resource and communication platform idolized by many IT students in the universities. What started off as a hobby-cum-research work by Jerry Yang (now Chief of Yahoo!) and David Filo (Co-founder of Yahoo!) for their Ph.D. dissertations; has evolved and became an Internet sensation over time. What they did was to compile all their favourite web links to form an online directory for easy navigation in the World Wide Web. The duo’s work immediately garnered a lot of attention from many surfers in the Internet world and before they realized it, Yahoo! became one of the most highly visited websites of all time. The duo saw the…show more content…
Messenger to stay in touch with the world loved ones, friends and colleagues. This level of services does not provide any direct revenue source to the company except to build up the membership base and attract more unique visitors (number of eyeballs attraction) to enhance the visibility of the portal which can help to build up the brand and reputation.
- Advertisers and publishers form the main source of revenue for the company. They consist of both pure-clicks and bricks-and-clicks merchants and retailers wishing to capitalize on the Internet as a form of marketing tool to push their line of products and services to the consumers. Online publishers may include small time business operators that attempt to sell their products or services to the customers as well. The revenue source includes advertising fees, transaction fees and referral fees to affiliates.
- Small-Medium Enterprises (SMEs) wishing to build an online presence at Yahoo! website by subscribing to the Yahoo! Merchant Solutions program which help SMEs to create and run a virtual store front in under an hour! The package comes with a domain name parking service, a business application suite such as business web mail service as well as all the hosting needs all rolled into one simple solution. The revenue source will include the monthly subscription fees of the SMEs for the running, maintenance and 24/7 support extended to the merchants. This greatly reduced the transaction costs involved in