YAHOO
CASE ANALYSIS
I. BACKGROUND OF THE CASE
1.1. HISTORY
January 1994,David Filo and Jerry Yang created a website named
‘’Jerry’s guide to the World Wide Web’’.
March 1994, it was renamed Yahoo! selected the name because they
liked the words general definition, ‘’rude, unsophisticated, and
uncouth’’.
January 18, 1995, The ‘’yahoo.com’’ domain was created
1996, Yahoo! is only working as a search engine
March 8, 1997, Yahoo! acquired online communication company
Four11 and their webmail, Rocketmail which is known as Yahoo! Mail.
January 28, 1999 ,Yahoo! acquired webhosting provider GeoCities
June 28, 2000, Yahoo! also acquired eGroups which become Yahoo!
Groups.
1.2. CASE BACKGROUND
2000-2001 open up to the agreement called ‘’dotcom bubble’’
mid-year of 2001, the ‘’post dotcom bubble’’ contract was called off and Yahoo!
started to use its own search engine technology. To capture the WEB 2.0
market space, Yahoo! released their Yahoo! music service and acquired Flickr
March 2005, the company launched its blogging and social networking service
called Yahoo! 360°.
Received Criticism for funding spy and advertisement technologies and pop-
ups.
Regarded as the most visited websites on the Internet by Web traffic analysis
companies such as ComScore, Alexa, and Netcraft, with more than 130 million
unique users all over the world. The global network of Yahoo! websites received
3.4 billion page per views per day on average as of October 2007, making it as
one of the most visited U.S. websites. In November 2013 Yahoo! website in
China, cn.yahoo.com, has ceased the operation in China.
October 2010-2013, Yahoo’s investment to R&D is reportedly to continuous
flunk down which result to the massive switch of users to Google.
II. POINT OF VIEW
The Yahoo Company CEO.
III. TIME FRAME
The case will start to year 2013 up to
year of 2016.
IV. STATEMENT OF THE PROBLEM
4.1. ROOT-CAUSE ANALYSIS
January 2000 Dotcom Bubble Agreement
Post Dotcom Bubble Agreement. Yahoo started to use its own search
June 2000
engine
Web 2.0. Market Space. Yahoo acquired Music service, Flickr, and
March 29, 2005
Yahoo 360°
Received Criticism for funding spy and advertisement technologies
June 2005- May 2006
and pop-ups.
October 2007 Regarded as the ‘’Most Visited Website’’
Yahoo Website ceased the operation concerned terrorist attack of
November 2013
China Government.
Researchers found out that Yahoo’s investment in R&D is decreasing
Early 2014 – January2016
and it is massively overpowered by Google’s Innovation
Starboard, the activist investor of Yahoo, wants to change the
Board of Directors.
March 2016
CEO Marissa Mayer, reported that Yahoo is continuously losing
customers, sales, and investment.
April 2016 Microsoft, Facebook and Verizon reportedly wanted to acquire Yahoo.
MAJOR PROBLEM
Ineffective & Inefficient Leadership styles &
decreasing investment to research and
development to continuous innovation.
SUB-PROBLEMS
Starboard investors wanted to change the board of
directors without resolving first the recent problem.
Continuously losing customers, sales and
investors.
V. STATEMENT OF OBJECTIVES
To come up to a solution that will suit to the Yahoo’s Company
recent problem in today’s stand in the industry.
To resolve the recent problem using the proposed solutions to
the Yahoo’s Company stand in today’s industry.
To make a sound decision in choosing and applying the solutions
that will be soon implemented in the Yahoo’s Company.
To make Yahoo, stays in the online industry by applying and
implementing wisely the solutions that have been made.
VI. AREAS OF CONSIDERATION (SWOT)
STRENGTHS WEAKNESSES
Affiliate Advertising. Decreasing Market Share
Powerful Marketing Company Product Portfolio Differentiation
Yahoo’s known Product Portfolio. Financial Health
OPPORTUNITIES THREATS
Development of Yahoo Directory Yahoo’s search engine and other
Mobile Technologies and Social services is declining very rapidly
Media because of competitors’ strong
Diversification of Related Business presence.
Segments Cultural Issues and Global Service
Provider
TOWS ANALYSIS
External Opportunities External Threats
1. Development of Yahoo Directory 1. Yahoo’s search engine and other
2. Mobile Technologies and Social services is declining very rapidly
Media because of competitors’ strong
3. Diversification of Related presence.
Business Segments 2. Cultural Issues and Global Service
Provider
Internal Strengths SO ST
1. Affiliate Advertising. Opportunity #1 + Strengths Strengths #2, #3 + Threats
2. Powerful Marketing Company #3 #1
3. Yahoo’s known Product Portfolio. Opportunity #2 + Strengths Strengths #1 + Threats #2
#2
Opportunity #3 + Strengths
#1
Internal Weaknesses WO WT
1. Decreasing Market Share Weakness #1 + Opportunity (Opportunity #2 + Strengths
2. Product Portfolio Differentiation #2 #2 ) + (Weakness #1+
3. Financial Health Weakness #2 + Opportunity Threats #1)
#1 (Opportunity #1+ Strengths #3
Weakness #2 + Opportunity ) + (Weakness #2+ Threats
#3 #1)
(Opportunity #3 + Strengths
#1) + (Weakness #3+ Threats
#2)
TOWS ANALYSIS
Strengths and Opportunities (SO) – How can you use your strengths to take advantage
of the opportunities?
Opportunity #1 Development of Yahoo Directory + Strengths #3 Yahoo’s known Product
Portfolio.
Opportunity #2 Mobile Technologies and Social Media + Strengths #2 Powerful Marketing
Company
Opportunity #3 Diversification of Related Business Segments + Strengths #1 Affiliate
Advertising
Strengths and Threats (ST) – How can you take advantage of your strengths to avoid
real and potential threats?
Strengths #2 Powerful Marketing Company, #3 Yahoo’s known Product Portfolio. +
Threats #1 Yahoo’s search engine and other services is declining very rapidly because of
competitors’ strong presence.
Strengths #1 Affiliate Advertising. + Threats #2 Cultural Issues and Global Service
Provider.
Weaknesses and Opportunities (WO) – How can you use your opportunities to overcome the
weaknesses you are experiencing?
Weakness #1 Decreasing Market Share + Opportunity #2 Mobile Technologies and Social
Media
Weakness #2 Product Portfolio Differentiation + Opportunity #1 Development of Yahoo
Directory
Weakness #3 Financial Health + Opportunity #3 Diversification of Related Business Segments
Weaknesses and Threats (WT) – How can you minimize your weaknesses and avoid threats?
Through certain strategies using the opportunity and strengths of Yahoo Company we could
come up to how to avoid, not necessarily avoid but reduce threats in the company.
(Opportunity #2 Mobile Technologies and Social Media + Strengths #2 Powerful Marketing
Company ) + (Weakness #1 Decreasing Market Share+ Threats #1 Yahoo’s search engine and
other services is declining very rapidly because of competitors’ strong presence.)
(Opportunity #1 Development of Yahoo Directory + Strengths #3 Yahoo’s known Product
Portfolio) + (Weakness #2 Product Portfolio Differentiation + Threats #1 Yahoo’s search engine
and other services is declining very rapidly because of competitors’ strong presence.)
(Opportunity #3. Diversification of Related Business Segments + Strengths #1. Affiliate
Advertising.) + (Weakness #3 Financial Health + Threats #2 Cultural Issues and Global
Service Provider)
VII. ALTERNATIVE COURSES OF
ACTION (STRATEGIES)
ACA 1. Yahoo’s CEO should convince the board of
directors and investors that they should sell or Yahoo will be
acquired by three the biggest market Share Company the
Microsoft, Facebook and Verizon.
ACA 2. Invest more on Research and Development through
revenues gain to the affiliates advertising partners.
ACA 3. Yahoo could change its webpage design and make
their advertisement through sending of e-mails to their
Yahoo Messenger.
LEGEND 3 VERY GOOD
2 GOOD
1 POOR
ACA MATRIX
ACA 1 ACA 2 ACA 3
EASE OF
IMPLEMENTATION 3 2 2
TIMELINESS 3 2 1
EFFICIENCY 1 2 1
TOTAL 7 6 4
VIII. RECOMMENDATION
The researchers come up to two
solutions of the existing problem, so
the researchers use ‘’hybrid method’’
to solve the existing problem. ACA 1
and ACA 2 could be the best solution
to the existing problem.
IX. DETAILED ACTION
PLAN
RESPONSIBLE/
STRATEGIC GOALS STRATEGY OBJECTIVES TIMELINE
PERSONS INVOLVED
Increase market To resolve the
Yahoo’s CEO should
share in the web- existing problem CEO According to research
search engine convince the board of particularly the lack Board of Directors Microsoft, Facebook and
industry and other of investment to Research and Verizon is reportedly
directors and investors
services. Research and Development Team interested in acquiring
Surpassed incoming that they should sell or Development through Yahoo, early in 2016, so
and existing implementing and if it will be implemented
Yahoo will be acquired
competitors in the applying the stated it would start probably.
industry. by three the biggest strategies.
Increase Investment To retain and gain September 2016 – Mid-
market share company
in Research and more customers, year of 2020 / until the
Development. the Microsoft, Facebook sales and investors ongoing innovation,
that could increase development and
and Verizon.
market share. targeting the market is
completed.
Create innovative To meet the Either of the Three
products that could Invest more on strategic goals Giant Company –
attract the today Research and through the use of Microsoft, Facebook, September 2016 – Mid-
and future the stated strategy. and Verizon. year of 2020 / until the
generation. Development through To develop and CEO ongoing innovation,
Develop unknown create more Research and development and
services in the revenues gain to the innovative products Development Team targeting the market is
internet space. affiliates advertising and services through completed.
Provide awareness massive Research and
and information partners. Development.
