Yahoo! Case Study

Topics: Yahoo!, Internet, Marketing Pages: 6 (1300 words) Published: September 4, 2013
Case Study –Yahoo! Inc.

1. Case Title
Yahoo! Inc.
2. Brief History/Background of the Case
Yahoo! Inc is an internet service provider that services both users and business globally. The company was found in 1944 by David Filo and Jerry Yang who were attending Stanford University(PHD Program). In 1995,Yahoo!Inc was incorporated in Delaware and launched a highly successful initial public offering IPO in April 1996 with a total of 49 employees. Its stock rose to the high of $120 in 2000 but for most of 2009 has been trading under $14. In January 2009, Carol Bartz replaced Jerry Yang as Yahoo!’s new CEO. 3. Vision and Mission

Yahoo!’s vision and mission is : “Yahoo! Power and delights our communities of users, advertiser and publishers- all of us united in creating indispensable experiences and fueled by trust” 4. Viewpoint

Carol Bartz-Yahoo!’s new CEO
5. Time Context
2010
6. Statement of the Problem
How can Yahoo! Inc expand its marketing share?

7. Objectives
★ Short range
-To increase the profit by 1.5% within half year
-To increase the marketing share by 1% within 1year
-To create 1 new product or service within half year
★ Long range
-To increase the profit by 8% within 3 years
- To increase the marketing share by 5% within 3 years
- To create 5 new products or services within 3 years

8. SWOT Analysis
★Strength
Marketing:
-2nd leading global internet brand
-1 of the most trafficked internet destinations worldwide
-provide its advertising offerings and access to internet users beyond Yahoo! -provide must-buy marketing solutions for the world’s largest advertiser -deliver industry –leading open platforms that attract developers and publishers -provide to users are free

Human Resources:
-Yahoo! has offices in more than 25 countries, provinces and territories Operation:
-owned and operated online properties and services
Finance:
-its stock rose to the high of $120 in 2000
-trading under $14 for most of 2009
-revenues form 2007-2008 increased by 34% to $7.2 billion

★Weakness
Marketing:
-online advertising is deteriorating rapidly
Human Resources:
-laid off 700 employees
-eliminating another 675 jobs or 5% of its workforce on top of 2500 jobs out in 2008 Operation:
-closed its third video property, maven network in Cambridge, Massachusetts -plan to close 20 video services
Finance:
-net income decreased by 35.7% to $424 million
-posted a 78% profit decline in the 1st quarter 2009 Revenues fell 13% in the 2nd quarter 2009 -aggressive cost cutting

★Opportunity
Economical:
-1.1 billion internet users around the world(end of 2006)
-211 million internet users in USA(as the end of 2006),Internet advertising revenues in USA remain strong -internet advertising continues to grow
Social/culture:
-Yahoo!’s code of ethic is embedded in its 6 values: Excellence, Innovation, Customer, Fixation, teamwork, Community and Fun -consumers spend more and more of their times online
Technology:
-internet-related business was better than non digital counterparts -provide a wide range of communication services to users
Educational:
-David Filo and Jerry Yang were PHD candidates in electrical engineering at Stanford University Competition:
-only have 2 major competitors

★Threats
Economical:
-economical growth in USA and around the world has slowed amid crisis -difficult economic backdrop
-rising unemployment
Political:
-problematic geopolitics
-change in legislative requirements concerning technology sharing, patent rights and information security Technology:
-limited internet products
Competition:
-lost 1% in rich media revenue, 1% in sponsorship and 2% in classified ads in 2008 as compared to 2007

9. Alternative courses of action
ACA1: To grow its customer base and create new products and services for expansion Advantage:
-increase profit
-meet the needs of customers
-improve competition capability...
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