Subject: Yahoo Case Analysis
Case starts with a brief introduction of the evolution of the Internet and in short web. As this new segment grows simultaneously in the market, case shows the emergence of some companies to fill the gap in the market. After 1990s there were increased numbers of PC users around the world, and after discovering the necessary hardware and software developed, it enabled several companies to take an active role in the market. Analysis of the life cycle of Yahoo! Can be categorized as such: Starting from 1994 –the foundation of the company by David Filo and Jerry Yang until early 1997 can be recognized as Entrepreneurial stage. Yahoo! Started to improve the company by adding commerce and community contents to gain a competitive advantage against its’ main competitor Excite, which can be considered as an entrance of collectivity stage. There are also properties of Yahoo! Defined in the text which I don’t feel to need to refer to avoid summarizing, as a proof of this stage since one of the characteristics of Collectivity Stage is Major Service with variations. Company is young and tends to grow; structure is not yet fully and clearly defined. Now the company shows the signs of formalization stage, the reason is mostly related with time; after almost 16 years from collectivity stage we can say that Yahoo! Was able to handle the division of labor and formalized systems; which is also proven by the detailed financial statements provided. Yet, even though the company is in formalization stage, it follows a different approach to formalize compared to other companies as we see in the text. The place they ran their operations from an unassertive building and saying that they are “cheap”. These slogans may help its users to associate themselves with the company, since there is a bad image for major corporations related with their extreme expense for luxurious items, their lustful behavior and such.
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