Warren Sports
Running Head: REORGANIZING YAHOO
Strategic Management Plan
Introduction
The current market position of Yahoo in search engine industry exhibits that it is far behind than its competitor Google as Google is generating about double revenue on each search advertisement (ad). The organization structure complexities, slow decision making process, lack of focus are some of the main issues that Yahoo is facing currently. The issues in Yahoo has compounded due to failure of the business to adopt the rapid changes in business environment. It caused a sharp decline in its ad revenues (Indu & Gupta). The financial information exhibits an increase in total revenue but a sharp decline in its net income. This paper discusses about some issues and their recommendations for Yahoo.
Issues for Yahoo
Currently, Yahoo is facing several issues related to its share in search marketing, customer revenues, search engine etc. The first issue for Yahoo is related to its structure of home page. The company adopted one-stop portal model as it offers all the services on its website. It also exhibits that Yahoo had become victim of its own success due to its different services that made its home page highly cluttered. The home page of Yahoo has several links to host of several products and services while the home page of Google, its main competitor, is quite simple and user friendly (Indu & Gupta). It also exhibits that Yahoo is quite unclear about its identity as it is providing services of portal, search engine and media company to its customers that affects its focus for a particular product or service. On the other hand, Google and other competitors have a particular specialized area that shifted the presence of consumers to these sites.
The second issue is related to the revenue generation ability of Yahoo as it has larger number of visitors than Google but has failed to generate significant revenue from them. It is causing a decline in its market position in
Strategic Management Plan
Introduction
The current market position of Yahoo in search engine industry exhibits that it is far behind than its competitor Google as Google is generating about double revenue on each search advertisement (ad). The organization structure complexities, slow decision making process, lack of focus are some of the main issues that Yahoo is facing currently. The issues in Yahoo has compounded due to failure of the business to adopt the rapid changes in business environment. It caused a sharp decline in its ad revenues (Indu & Gupta). The financial information exhibits an increase in total revenue but a sharp decline in its net income. This paper discusses about some issues and their recommendations for Yahoo.
Issues for Yahoo
Currently, Yahoo is facing several issues related to its share in search marketing, customer revenues, search engine etc. The first issue for Yahoo is related to its structure of home page. The company adopted one-stop portal model as it offers all the services on its website. It also exhibits that Yahoo had become victim of its own success due to its different services that made its home page highly cluttered. The home page of Yahoo has several links to host of several products and services while the home page of Google, its main competitor, is quite simple and user friendly (Indu & Gupta). It also exhibits that Yahoo is quite unclear about its identity as it is providing services of portal, search engine and media company to its customers that affects its focus for a particular product or service. On the other hand, Google and other competitors have a particular specialized area that shifted the presence of consumers to these sites.
The second issue is related to the revenue generation ability of Yahoo as it has larger number of visitors than Google but has failed to generate significant revenue from them. It is causing a decline in its market position in
References: Brown, B.C. (2007). The Ultimate Guide to Search Engine Marketing: Pay Per Click Advertising Secrets Revealed. Atlantic Publishing Company. Clarkson, J. & Eckert, C. (2005). Design Process Improvement: A Review of Current Practice. Springer. Indu, P. & Gupta, V. (n.d.). Reorganizing Yahoo. Case 12. Rognerud, J. (2008). Ultimate Guide to Search Engine Optimization: Drive Traffic, Boost Conversion Rates and Make Lots of Money. Entrepreneur Press. Sadler, P. & Craig, J.C. (2003). Strategic Management (2nd ed.). Kogan Page Publishers Thurow, S. (2003). Search Engine Visibility, Part 2. New Riders