The Yahoo Case

Topics: Yahoo!, Google, Web search engine Pages: 17 (4849 words) Published: February 21, 2013
Yahoo Case

Executive Summary

Yahoo is a global internet services company with an established reputation and strong brand recognition, which operates the Yahoo interactive Internet portal. The company provides varied products/services and diversified content such as search engine, email service, media streaming, downloads and ecommerce.

Originally established as a simple student research support hobby which major services included a free search engine and a free internet email service, yahoo will soon evolve into a global brand and then got an exponential success worldwide. The demands and opportunities that arouse from this planetary success lead to a profound transformation of the yahoo economic model in the mid 1990s, and the company will ultimately turn into an economic giant, professionally managed by qualified people and financially profitable by the end of 1998.

Faced with the constant changes in the internet industry and the gradual rise of competition, it became imperative to remain profitable and competitive. The company therefore engaged in several projects, such as the diversification of its services offer, acquisition of smaller competitors, innovations in IT infrastructure and improvement in Software research and development. Unfortunately, not all strategic decisions taken were judicious and Yahoo will soon have to deal with its first challenges translated by a stock price drop, inappropriate investments and a subsequent loss of revenues.

To break this deadlock, it is urgent an essential for Yahoo to take a number of initiatives as to stimulate its revenues. These actions include: * Reformulating its range of services, and content.

* Reconsidering its pricing structure, integrating the Google’s competitive advantage. * Improving its technology (search engine optimization, Video-advertising capabilities). * Responding to the customers’ needs.

Introduction and company overview

Yahoo Inc is a “Global internet communications, commerce and media company that that offers a comprehensive branded network of services (…) worldwide”. Although the company is headquartered in Sunnyvale, California, US, its activities have been replicated in 18 portals and 12 languages around the world. At the end of the 1990s, the company was globally known as the most popular Internet portal in terms of monthly traffic, with activities extended to a wide array of sectors such as: *

* Advertising
* Communication
* Information storage and tracking
* Search engine
* Content management
* Mobiles services
* Internet services
* Web portal
* E-Commerce
* Yahoo directory
* Online mapping
* Small business & finance
* Social media
* Fantasy sport

Yahoo! (Yahoo) is an internet and media communications company, offering internet services such as search and email. The company provides a range of services to individuals, including search, shopping, information, entertainment and communication. Its major websites include Yahoo! Mail, Yahoo! Search, Yahoo! Answers and Flickr, among others. The company provides services in more than 25 languages and in more than 50 countries, regions and territories. It primarily operates in the US, where it is headquartered in Sunnyvale, California and employs 13,900 people. The company recorded revenues of $6,460.3 million during the financial year ended December 2009 (FY2009), a decrease of 10.4% over 2008. The operating profit of the company was $386.7 million in FY2009, compared to an operating profit of $13 million in 2008. Its net profit was $598 million in FY2009, an increase of 42.7% over 2008. After having stressed the history of this firm and the challenges it is confronted, this paper will primarily discuss the internal and external economic environments respectively. Then it will study the question of possible options to solve the central problem of Yahoo. Ultimately, a recommendation of...
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