Yahoo!'s Overture is a tremendously profitable Internet advertising business. It focuses on affiliate advertising for large adverting accounts, in the same way as Google's Adsense programme. This is an important income stream for Yahoo!.
Yahoo! has over 350 million users of its services and solutions. This makes it a very powerful marketing company, with a very well known brand. Some reports indicate that is it is the most popular website in the World.
A key long-term strength is Yahoo!'s international business presence. As the Internet expands and it is adopted by more nations the opportunities for Internet brands begin to emerge. Yahoo! is well placed to take advantage of these opportunities with its strategic business units in Asia, Europe and Australia.
The Yahoo! Directory is an original source of structured information. It has built over the last decade, and unlike mainstream search engines, its content is moderated (i.e. sites are vetted before their inclusion).
Differentiation is difficult for Yahoo!. Almost all of its packaged services are available from other sources.
1. (i)Search facilities are available on MSN and Google.
2. (ii)Free E-mail accounts are available from Hotmail (MSN) or G-Mail (Google), and many, many others.
3. (iii)New is available from CNN or the BBC.
4. (iv)Shopping is available everywhere on the Internet. Google has Froogle.
Online advertising is a new income stream for organizations such as MSN, Yahoo! and Goggle. Yes, today they are very, very profitable. However, as technology develops and new unforeseen advertising media emerge, the future is uncertain for these income streams. This is a weakness for Yahoo! and its competitors.
Another income stream that has been key to Yahoo! is derived from its partnerships with telecommunication providers. For example, you buy an Internet connection package from your local telephone company, and it includes a fee-based... [continues]
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