Case Study On yahoo!

Yahoo is being challenged on four fronts, all tied closely to search.

These include lower revenues in the advertising networks due to
competitors, Google’s dominance in the search and advertising
space, inefficient search results, and the changing face of portals.
The company needs to come to the realization that search is their
future, with advertising intertwined. Once their core competencies
have shifted successfully from a portal strategy to a company
relying on its search algorithm, they can begin to implement the
advertising strategies that have proven useful in banner ad
integration, for the contextual advertising market.

The first step is refining their search algorithm, though. Yahoo

may even combine their intense focus on portals to deliver more
focused results in their queries. For instance, they can leverage
the power of social networks and blogs, quantifying the links and
keywords in a format that Google has yet to recognize. In short,
Yahoo can be the dominant search engine by applying a new age
search algorithm to its rankings. Coupled with this algorithm, they
can deliver smarter text advertising. Yahoo is the only search
engine that not only quantifies the linking text, or anchor words
which transport you to another site, but also the surrounding
keywords. For example, if a user is reading an article about
spyware removal, and the link is placed in the word spyware, then
Yahoo would be able to distinguish that three words before
‘spyware removal’ was the brand name of a piece of software.
Then, if a user clicked on the link, they would instantaneously be
served an ad for that spyware solution. This new advertising
structure will need to be expanded to meet the demands of the
independent webmasters in charge of various, niche sites.
Payouts should be slightly higher because they are breaking into
Google’s area. By Yahoo focusing on improving its search
algorithm, they will be directly addressing their diminishing user
base. People are leaving because the search results aren’t as
relevant as Google’s. So change the algorithm to account for
more factors than Google’s does.
Advertisers are advertising with Yahoo because their
implementation is faulty; their search engine is flawed. Clean up
the search results, and that problem will disappear.

In the end, Yahoo needs to deliver a more value added product.

Not in the form of more portal pages or more section to their
website, but a more flawless search engine. The rest can be
harnessed from that.
 Solution
In my view Yahoo should move forward with one core
competency, which is search. They should focus their resources
on developing the algorithm necessary to key in on social
networks and portals because of their background in the history.
They should design and implement a better solution. Their ad
network will be integrated into the search algorithm to pick up
related keywords in linking text and content. This will be coupled
with webmaster utilization so that outside publishers may benefit
from Yahoo’s resources and advertising network. All in all, the
outside influence will increase Yahoo’s revenue. The strategic
implementation will follow this path:

11. Redirect Employees

2
32. Refine the Algorithm

43. Implement the Algorithm

54. Refocus the Advertising Network

65. Expand the Ad Network

76. Implement Outside Publishers

Redirect Employees

The strategic implementation will be such that no employees will

be laid off. They will simply be redirected. The core mission of
Yahoo for over a decade has been to focus as a portal. They were
told to expand the network, not make it better. Their new
initiative will be to forget about expansion, and refine the search
capabilities of the site. Hence, forming the foundation of the new
company strategy. The first thing that needs to be done is alert
everyone of the change. This will take place in a top-down
manner. First the upper level managers will be met with, then
down from there. The first day, each of the 10,000 employees will
need to be notified in one form or another. Depending on the shift
patterns, or whether the managers believe it is necessary to alert
them individually, they will all be contacted. In charge of the
project will also be two individuals, one task oriented and one
more inclined to deal with the emotional side. The next step will
be redirecting employees work habits. For those who will be
switching groups (going from the portal philosophy to the search
initiative), they will be moved to different offices. Their desks,
computers, etc. will be switched. They will have a new cubicle or
office with the search team. Once there, it will be possible to start
separating the individuals into team so that the search strategy
can be attacked. Some will work through code while others will
research.

Refine the Algorithm

This team will then come together under the two project
managers or under their supervision to some extent. They will
apply the research and programming knowledge to plan out and
refine a new algorithm for Yahoo. This will entail the variables of a
group who have been tasked with research. They are the ones
who will provide the ideas and thoughts on the setup. The
programmers will begin to put their thoughts into something a
computer can interpret, otherwise known as coding. After the
algorithm has been coded, it will be tested thoroughly. Those
same researchers will be responsible for trying to break it. They
will test for the validity of the page ranking techniques and make
sure that everything is on par. If there are discrepancies, they will
alert the managers and the programmers and come up with a
solution as soon as possible. In traditional coding projects, up to
90% of the time is put into the planning stage. Therefore, the
emotionally oriented leader will be the one coaching this session.
The task oriented will issue objectives, but will play a sub-crucial
role in the projects development. He will instead focus on the
design aspects and how they relate to the coding. He will not be
pushing the researchers to extraordinary limits. After the search is
sufficiently refined, it goes to the implementation phase.

Implement the Algorithm

This phase is simply the rollout of the new search algorithm. The
algorithm should be soft launched without any real marketing
behind it initially. In order to successfully work, the mass of users
need to test out the algorithm before it is marketed thoroughly.
This stage will call for ‘all hands on deck’ to combat issues taking
place in the algorithm itself. Emergency coding may be necessary
as well. Once the launch has been successfully pulled off, it is
necessary to market it efficiently. This can be done through online
ads placed at high traffic sites, such as was done when Yahoo got
their facelift six months ago.

Refocus the Advertising Network

With the successful product launch, it is now necessary to

integrate the advertising software into the search engine. This
can be done using the techniques used before the new algorithm,
but using better keyword data which the new search algorithm is
providing. The people who researched the algorithm will be
tasked with promoting the new features on the website. They will
be the soft touch of the advertisement relaunch, and led by the
emotionally oriented leader. The task oriented manager will be at
the helm of the advertising network relaunch.

Expand the Ad Network

The expansion of the ad network will include accepting new

advertisers and publishers into the advertisement process.
Infrastructure needs will be handled by the programmers. The
researchers will be encouraging new publishers to sign up and
handling the emails, while approving the new publishers.
The Implementation of Outside Publishers
As the final step in the relaunch, the coders will continue to refine
the advertisement algorithms so that it ensures absolute
targeting. The other employees will continue to handle the soft
side of the business; getting new publishers, providing for the
existing ones, and handling feedback.

Conclusion

This search engine relaunch is a difficult and painstaking process,

but it will refocus the business in the most profitable way
possible. Having a good base to establish an advertising network
is the best way to go forward for growth. If the search algorithm is
failing, then an advertising network built on top of it will be
leaking dollars. This strategy will help Yahoo maintain the brand
while allowing it to refocus the core of its business.