Yahoo! Case Study

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Yahoo! Inc – 2009
Case Study

Fernanda Cugola

Southern States University
BU-524 Strategic Management
FALL 2010
Introduction
Headquartered in Sunnyvale, California, Yahoo! provides services through via the internet and has offices in more than 25 countries, provinces, or territories. Yahoo! was founded by Jerry Yang and David Filo in 1994, when they created a website intended to keep track of their personal interests on the internet. Yahoo! grew tremendously during the 90’s, and like many search engines and web directories, Yahoo! turned into a Web Portal. It also made many high-profile acquisitions. In 2000, Yahoo! began utilizing Google for search results. By 2004, they had developed their own searching technologies and they’ve also revised their mail service to compete with Google’s Gmail. Yahoo! is the second leading global Internet brand and one of the most trafficked Internet destinations worldwide. Together with its owned and operated online properties and services, it also provides advertising offerings and access to Internet users beyond Yahoo!. The company generates revenues by providing marketing services to advertisers across hundreds of websites. Yahoo! in 2008 had rejected Microsoft’s unsolicited $44.6 billion offer, claiming that it “substantially undervalues” Yahoo! and was not in the interest of its shareholders. But in January 2009, Carol Bartz replaced Jerry Yang as Yahoo!’s CEO and discussions with Microsoft were resumed.

Firm’s existing vision, mission, objectives and strategies The core of Yahoo!’s strategy and operations is to become the starting point for Internet users; to provide must-buy marketing solutions for the world’s largest advertisers; and to deliver industry-leading open platforms that attract developers and publishers. Yahoo!’s vision or/mission statement is “Yahoo! powers and delights our communities of users, advertisers and publishers – all of us united in creating indispensable experiences, and fueled by trust”. Yahoo!’s code of ethics is embedded in its six values: Excellence, Innovation, Costumer Fixation, Teamwork, Community and Fun.

Mission Statement
Yahoo!’s mission is to deliver to every user all the tools necessary to implement their everyday life with value and accessibility

Vision Statement
Yahoo!’s vision is to become the biggest internet tool for users and businesses, providing the services needed for their success

Identify the organization’s external opportunities and threats Opportunities
1. Increasing number of internet users
2. Advertisement with videos is expected to grow
3. Customized marketing
4. Value of brand
5. Partnership with Microsoft

Threats
1. Google has a better search engine
2. Competition with YouTube, owned by Google
3. Market share
4. Negative image with too many advertisings

Construct a Competitive Profile Matrix (CPM)
Yahoo! Google Critical Success Factors| Weight| Rating| Score| Rating| Score| Advertising| 0.15| 3| 0.45| 4| 0.60|

Market Share| 0.10| 3| 0.30| 4| 0.40|
Brand Recognition| 0.20| 4| 0.80| 4| 0.80|
Innovation| 0.10| 2| 0.20| 4| 0.40|
International Market| 0.20| 4| 0.80| 2| 0.40|
Customer Loyalty| 0.15| 4| 0.60| 4| 0.60|
Product Value| 0.10| 3| 0.30| 3| 0.30|
TOTAL 1.00 3.45 3.5

Construct an External Factor Evaluation (EFE) Matrix

Opportunities| Weight| Rating| Weighted Score|
Increasing number of Internet users| 0.15| 4| 0.60|
Advertisement with videos is expected to grow| 0.05| 2| 0.10| Customized marketing| 0.05| 3| 0.15|
Value of brand| 0.15| 4| 0.60|
Partnership with Microsoft...
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