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Yahoo Business Overview and SWOT Analysis

Yahoo was founded in 1994 by Jerry Yang and David Filo to keep track of their personal interests on the internet. It incorporated in 1995 and went public in 1996. Yahoo's main sources of income in the late 1990s were online advertisements and promotions. By 2001, Yahoo had 3,500 employees across 44 business units. A SWOT analysis identified strengths in being an early search engine provider and economic growth during the dot-com boom, but also weaknesses in unclear identity, slow decision making, and inability to generate sufficient revenue from visitors. Opportunities existed in loyal users and online advertising growth, but threats included competition from Google and changes in market tastes. Yahoo reorganized in the 2000s to focus on audiences, advertising,

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5 views3 pages

Yahoo Business Overview and SWOT Analysis

Yahoo was founded in 1994 by Jerry Yang and David Filo to keep track of their personal interests on the internet. It incorporated in 1995 and went public in 1996. Yahoo's main sources of income in the late 1990s were online advertisements and promotions. By 2001, Yahoo had 3,500 employees across 44 business units. A SWOT analysis identified strengths in being an early search engine provider and economic growth during the dot-com boom, but also weaknesses in unclear identity, slow decision making, and inability to generate sufficient revenue from visitors. Opportunities existed in loyal users and online advertising growth, but threats included competition from Google and changes in market tastes. Yahoo reorganized in the 2000s to focus on audiences, advertising,

Uploaded by

Alexandra Chan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd

MSC Management – Business Policy Group Presentation on “Yahoo”

Introduction
(Slide#1)
• Found in April 1994
• By: Jerry Yang and David Filo
• Purpose - created a directory to keep track of their personal interests on the Internet
• Incorporated in March 1995 / IPO in April 1996

(can incorporate photos of Jerry & David)

(Slide#2)
• Source of income
o online advertisements, primarily banner ads and ad placement fees
o promotions, sponsorships
o direct marketing and merchandising
(can insert photos of “banner ads” from Yahoo website)

(Slide#3)

Composition in 1997 - 2000


Yahoo! Revenues

15%

Sal es of Banner &


Sponsorshi p Advest i si ng
Busi ness Servi ce & e-
Commerce Transacti ons

85%

• CEO - Timothy K Koogle (2001)

• Company Structure
- Matrix structure: 3500 employees / 44 business units (2001)
MSC Management – Business Policy Group Presentation on “Yahoo”

SWOT Analysis
(Slide#4)
Strength

1) First internet search engine provider


• Innovative web services - locate, identity, and edit materials on the Internet

2) Economic and social factors - experience “dotcom” blooming


• 2004 to 2005: internet advertising growth 30%

3) Single portal that offers a array of services in 1996 (should elaborate what sort of
“services”)

4) Able to access to global markets (should elaborate HOW)

(Slide#5 - #6)
Weakness

1) Unclear identity “Portal / Search Engine / Media Company”


2) Company structure => slow decision making.
3) Unable to integrate after acquisition
4) Failure to generate enough revenues from the web visitors.
(can insert simple graph showing the comparison of Google Vs Yahoo fr. Data on P.590 3rd para)

5) “Top – Down” approach: Hinders creativity and little cooperation between teams
6) Internal rivalry between president and CEO in 2000
7) Unable to adept the rapidly changing economic environment

(Slide#7)
Opportunities

1) Abundant “loyal” clients (For script: able to further manipulate revenues)


2) Emergence of “Gen-Y” users
3) Target into market uncover by competitors.
4) Enter into agreement of 9 News Company and obtain a win-win situation.
5) Booming of online advertising in 2000 - 2005 (“due to the spread of broadband connections
and the diminishing popularity of traditional advertising P.589 – 1st paragraph)
(may show the photos of “Mixd” features)

(Slide#8)
Threats
1) Overture completion from Google in 2004
2) Google shows increasing dominance in the market
MSC Management – Business Policy Group Presentation on “Yahoo”

3) Google ables to generate more revenues with fewer visitors


4) Change in market taste - “dotcom is declining, “media web is rising.”
5) Yahoo!’s services kept facing different challenge from various competitors.

Conclusion
(short “YouTube” of Panama – introduction of the reorganization program)

(O) Expand customer segments “Different culture and age group


(T) Create social media “Too many Competitors”
(S/O) Create a large scale of advertising choosing for? large corporation to small business
(S) Recruit high values talented business????
(W) 44 business units downsize to 5
(O/T) Customer centric focus in 3 aspects:
- Audience / Advertising
- Publishing
- Technology
(T/W) Panama “No need to be as good as Google, just have the right thing.”

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