Professional Documents
Culture Documents
Yahoo Case Sample
Yahoo Case Sample
CASE ANALYSIS
I. BACKGROUND OF THE CASE
1.1. HISTORY
January 1994,David Filo and Jerry Yang created a website named
‘’Jerry’s guide to the World Wide Web’’.
March 1994, it was renamed Yahoo! selected the name because they
liked the words general definition, ‘’rude, unsophisticated, and
uncouth’’.
January 18, 1995, The ‘’yahoo.com’’ domain was created
1996, Yahoo! is only working as a search engine
March 8, 1997, Yahoo! acquired online communication company
Four11 and their webmail, Rocketmail which is known as Yahoo! Mail.
January 28, 1999 ,Yahoo! acquired webhosting provider GeoCities
June 28, 2000, Yahoo! also acquired eGroups which become Yahoo!
Groups.
1.2. CASE BACKGROUND
2000-2001 open up to the agreement called ‘’dotcom bubble’’
mid-year of 2001, the ‘’post dotcom bubble’’ contract was called off and Yahoo!
started to use its own search engine technology. To capture the WEB 2.0
market space, Yahoo! released their Yahoo! music service and acquired Flickr
March 2005, the company launched its blogging and social networking service
called Yahoo! 360°.
Received Criticism for funding spy and advertisement technologies and pop-
ups.
Regarded as the most visited websites on the Internet by Web traffic analysis
companies such as ComScore, Alexa, and Netcraft, with more than 130 million
unique users all over the world. The global network of Yahoo! websites received
3.4 billion page per views per day on average as of October 2007, making it as
one of the most visited U.S. websites. In November 2013 Yahoo! website in
China, cn.yahoo.com, has ceased the operation in China.
October 2010-2013, Yahoo’s investment to R&D is reportedly to continuous
flunk down which result to the massive switch of users to Google.
II. POINT OF VIEW
April 2016 Microsoft, Facebook and Verizon reportedly wanted to acquire Yahoo.
MAJOR PROBLEM
Ineffective & Inefficient Leadership styles &
decreasing investment to research and
development to continuous innovation.
SUB-PROBLEMS
Starboard investors wanted to change the board of
directors without resolving first the recent problem.
Continuously losing customers, sales and
investors.
V. STATEMENT OF OBJECTIVES
OPPORTUNITIES THREATS
Development of Yahoo Directory Yahoo’s search engine and other
Mobile Technologies and Social services is declining very rapidly
Media because of competitors’ strong
Diversification of Related Business presence.
Segments Cultural Issues and Global Service
Provider
TOWS ANALYSIS
External Opportunities External Threats
1. Development of Yahoo Directory 1. Yahoo’s search engine and other
2. Mobile Technologies and Social services is declining very rapidly
Media because of competitors’ strong
3. Diversification of Related presence.
Business Segments 2. Cultural Issues and Global Service
Provider
Internal Strengths SO ST
1. Affiliate Advertising. Opportunity #1 + Strengths Strengths #2, #3 + Threats
2. Powerful Marketing Company #3 #1
3. Yahoo’s known Product Portfolio. Opportunity #2 + Strengths Strengths #1 + Threats #2
#2
Opportunity #3 + Strengths
#1
Internal Weaknesses WO WT
1. Decreasing Market Share Weakness #1 + Opportunity (Opportunity #2 + Strengths
2. Product Portfolio Differentiation #2 #2 ) + (Weakness #1+
3. Financial Health Weakness #2 + Opportunity Threats #1)
#1 (Opportunity #1+ Strengths #3
Weakness #2 + Opportunity ) + (Weakness #2+ Threats
#3 #1)
(Opportunity #3 + Strengths
#1) + (Weakness #3+ Threats
#2)
TOWS ANALYSIS
Strengths and Opportunities (SO) – How can you use your strengths to take advantage
of the opportunities?
Opportunity #1 Development of Yahoo Directory + Strengths #3 Yahoo’s known Product
Portfolio.
Opportunity #2 Mobile Technologies and Social Media + Strengths #2 Powerful Marketing
Company
Opportunity #3 Diversification of Related Business Segments + Strengths #1 Affiliate
Advertising
Strengths and Threats (ST) – How can you take advantage of your strengths to avoid
real and potential threats?
Strengths #2 Powerful Marketing Company, #3 Yahoo’s known Product Portfolio. +
Threats #1 Yahoo’s search engine and other services is declining very rapidly because of
competitors’ strong presence.
Strengths #1 Affiliate Advertising. + Threats #2 Cultural Issues and Global Service
Provider.
Weaknesses and Opportunities (WO) – How can you use your opportunities to overcome the
weaknesses you are experiencing?
Weakness #1 Decreasing Market Share + Opportunity #2 Mobile Technologies and Social
Media
Weakness #2 Product Portfolio Differentiation + Opportunity #1 Development of Yahoo
Directory
Weakness #3 Financial Health + Opportunity #3 Diversification of Related Business Segments
Weaknesses and Threats (WT) – How can you minimize your weaknesses and avoid threats?
Through certain strategies using the opportunity and strengths of Yahoo Company we could
come up to how to avoid, not necessarily avoid but reduce threats in the company.
(Opportunity #2 Mobile Technologies and Social Media + Strengths #2 Powerful Marketing
Company ) + (Weakness #1 Decreasing Market Share+ Threats #1 Yahoo’s search engine and
other services is declining very rapidly because of competitors’ strong presence.)
(Opportunity #1 Development of Yahoo Directory + Strengths #3 Yahoo’s known Product
Portfolio) + (Weakness #2 Product Portfolio Differentiation + Threats #1 Yahoo’s search engine
and other services is declining very rapidly because of competitors’ strong presence.)
(Opportunity #3. Diversification of Related Business Segments + Strengths #1. Affiliate
Advertising.) + (Weakness #3 Financial Health + Threats #2 Cultural Issues and Global
Service Provider)
VII. ALTERNATIVE COURSES OF
ACTION (STRATEGIES)
ACA 1. Yahoo’s CEO should convince the board of
directors and investors that they should sell or Yahoo will be
acquired by three the biggest market Share Company the
Microsoft, Facebook and Verizon.
ACA 2. Invest more on Research and Development through
revenues gain to the affiliates advertising partners.
ACA 3. Yahoo could change its webpage design and make
their advertisement through sending of e-mails to their
Yahoo Messenger.
LEGEND 3 VERY GOOD
2 GOOD
1 POOR
ACA MATRIX
ACA 1 ACA 2 ACA 3
EASE OF
IMPLEMENTATION 3 2 2
TIMELINESS 3 2 1
EFFICIENCY 1 2 1
TOTAL 7 6 4
VIII. RECOMMENDATION