A CASE ANALYSIS
MS. WINNIE DIMAANO
ANN ABEGAIL ROSALES
(MMT – Batch 25)
I. CASE OVERVIEW
Terry Semel headed Yahoo! as CEO from 2001 until 2007. His goal was to build Yahoo! Site into a self-contained world of irresistible offerings that would grab and keep surfers glued to it for hours at a time. Semel made some progress in getting Yahoo grow again from Timothy Koogle’s chairmanship. Under his leadership, he changed Yahoo!’s old strategies which catered some advantages and disadvantages. Yahoo had significant project acquisitions but on the other hand, there are also more significant projects that were not accomplished that even become frustration of the whole organization and its shareholders.
Yahoo sees their core business as being Yahoo News, Finance and Mail. Yahoo’s search product has suffered considerably, because of expansion into other areas. Yahoo also had falling revenue and decreasing cash flows. Consequently, the shareholders expressed dissatisfaction with Semel’s performance leading him to resign. Yahoo was also compared to its greatest and unbeatable competitor, Google – in terms of capital, manpower, income and more.
The following are the main Strengths and Weaknesses of YAHOO! :
Yahoo!’s overture is a tremendously profitable Internet advertising business. It focuses on affiliate advertising for large advertising accounts, in the same way as Google’s programme. This is an important income factor of Yahoo! As the Internet expands and it is adopted by more nations the opportunities for Internet brands begin to emerge. It is well placed to take advantage of these opportunities with its strategic business units all over the world.
Yahoo! Directory is an original source of structured information. It has built in over the last decade, and unlike...