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Yahoo Case Study Essay

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Almost twenty years ago in 1994, talk show hosts of the Today show were filmed stumbling over their words attempting to define a new technology called “the internet” (Pegoraro, 2011). At the same time, Jerry Yang and David Filo, two Stanford University graduates who had embraced this new technology, were working to develop a framework to organize the plethora of websites they had discovered on the internet (“The history,” 2005). This exceptionally organized list of websites formed the concept behind Yahoo, which soon became one of the most highly visited sites on the internet (Indu & Gupta, 2007). Yahoo did very well in the first four years, but before long it was clear that the company was in desperate need of a focused strategy. The …show more content…

Therefore, the customer experience was not seamless with the new services that the acquisitions brought to the table. For example, Yahoo customers had to separately log into each service (Indu & Gupta, 2007). Furthermore, Yahoo’s complex organizational structure added confusion to their operating procedures and delayed the company’s ability to make vital business decisions. Yahoo lost out on lucrative opportunities, such as the purchase of YouTube, because they could not make timely decisions (Indu & Gupta, 2007). Employees felt that the management style of the organization stifled their creative talents (Indu & Gupta, 2007). These factors severely affected Yahoo’s performance. Reorganization was crucial for Yahoo to prepare the company to face fierce competitors like Google. The company took action to address the factors that were detracting from their performance. To enhance their revenues Yahoo developed new relationships, took advantage of existing website features, and implemented a new search marketing program. Yahoo partnered with nationwide newspapers to magnify their exposure through local advertisements (Welbes, 2006). Additionally, Yahoo launched Panama – a search technology that was to “deliver better targeted advertising with greater impact on Yahoo's bottom line” (Holahan, 2006, para. 2). The company began

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