As one of the leading pioneers of internet Yahoo! was founded in 1994 on board a trailer on Stanford’s University’s campus by Jerry Yang and David Filo. Yahoo’s core came from display and search advertising such as billboards on top of homepages. However the company faced losses due to poor management decisions which in turn angered the shareholders. By 2010 Yahoo’s revenues estimated roughly $6.3 billion which of 84% came from advertisement and the remaining from subscription fees for photo services and real estate. Yahoo’s motivation came from having a unique product and was not a means to a larger business model. As internet grew bigger and more companies entered the market the rivalry stared to worry the decision makers in Yahoo. …show more content…
However analyzers saw this as an aggressive macroeconomic strategy while Google continued its dominance over Yahoo! In 2009 Carol Bartz was appointed as the new CEO for Yahoo! She was known to cut costs and reform the company to create value for shareholders and gaining possibility for customers, partners and employees of the company. However it did not take long before she was criticized for her relations with Alibaba. The Chinese business to business selling forum’s subsidiary Alipay was an online payment site which was sold to a private company making it out of reach for Yahoo! Investors became angry and blamed Bartz for its cold relationship with the Alibaba group. Her ten year agreement with Microsoft led to boost the panama project ranking Yahoo! as the number three search engine. The leadership hoped that her strategy of a $200 million budget cut would help the company to focus more on selling banner ads for its owned media and email pages. However that was not enough as investors blamed the mistakes on the board and their way of handling business, selecting four CEO’s in four years, as the deal with Microsoft should have taken place in 2008. In a letter Daniel Loeb CEO of Third Point LLC with a 5.1% stake wrote his complaint and demanded to fire Carol Bartz and the board in order to restore order in the organization. Porter’s five forces analysis 1. Threat of new competition: * Yahoo’s biggest threat
The largest stakeholder of Netscape’s equity was Jim Clark, who accounted for 24%. The other primary owners were the venture capital firm Kleiner, Perkins, Caufield, & Byers, a group of six media companies led by Adobe Systems, and Netscape’s president and CEO, James Barksdale. They held 11%, 11%, and 10% of Netscape’s equity, respectively. The ownership shares of Netscape did not correspond to the investments made by the primary owners because the owners made their investments at different times. Jim Clark invested in Netscape first and therefore paid the least amount of money for the largest share of the firm. His second investment came at the same time as Kleiner Perkins, and at that point the price to purchase a share of Netscape had obviously increased. Clark’s total investment amounted to $3.5 million for 24% of the firm, whereas Kleiner Perkins paid $5 million for 11% of the firm. The investment made by the media companies came later, when the price of Netscape had risen even further. Therefore, the media firms purchased an aggregate 11% share of Netscape for $18 million. The final primary owner, Barksdale, was not said to have invested any capital in Netscape. However, as president and CEO, it can be assumed that he was offered a 10% share as an incentive to guide and motivate the company to perform well.
Today, Google, Inc. is worth more than General Motors, McDonald's and Disney combined, and the company continues to model the way in the global technology industry in which it competes. In fact, the company's name has become a verb and it is common practice for consumers to "Google" what they want to find online. To determine how Google, Inc. reached this dazzling level of performance in a relatively short period of time, this paper provides an analysis of the three external environments in which Google competes, the general environment, the industry environment and the competitor environment. Next, a discussion of two specific strategic issues as well as opportunities and threats that are facing Google, Inc. is followed by a summary of the research and important findings in the conclusion.
Google Inc. is one of the leading computer search engines in the world and is continuing to grow as the
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.
One of the strengths of yahoo is the number of users. Even though the company has a lot of competitors, there are still many people who are more comfortable in using yahoo. One of its services is yahoo mail. According to Craig Smith’s statistic report, there are 280 million users all around the globe and 81 million of that are users in the US. In addition, in this report, it stated that it has over 200 million unique visitors per month in 2016. To top it all off, there are 1 billion active users of yahoo this year. This is great news for the company because another strength of it is advertisements on yahoo mail. So the more users yahoo has, the more revenue is generated through advertisements on their website. According to EMarketer, yahoo’s worldwide net digital advertisements revenue in 2015 is $3.28 billion. Furthermore, since yahoo has a lot of mail subscribers, it is considered one of the most powerful marketing companies globally. Hitesh Bhasin stated, yahoo’s product portfolio includes yahoo messenger, yahoo personals, yahoo 360, Delicious, Flickr, yahoo Buzz, yahoo Mobile, yahoo shopping, yahoo real state, yahoo next, yahoo boss, yahoo meme. Also, yahoo is known for its web portal, yahoo mail, yahoo answers, yahoo news, yahoo finance, and its search engine. It’s web portal lets users search the web about any information that is available online. On the other hand, yahoo mail is used for communications between users, companies, businesses, professors, or
Due to the increased competition from Yahoo and Microsoft, it has posed a great threat to Google Company. Entry of such like companies in the market has been relatively easy and even offering similar services to the consumers is no longer a problem as unlike a while back, technology has greatly improved. With an improvement in technology, creating sites that help people access information from the internet has been quite cheap and all it calls for is the creativity of a company. Google, however, has been able to remain at the top of the chart. They have been able to come up with a user-friendly search engine for their clients, one that is easy to understand as well as easy to use. Also, Google has been able to cut on cost as they are able to create web pages using UNIX web servers which are relatively cheap. This makes it possible for them to minimize the cost of input and hence maximizing their profit margins. This makes it possible for them to hire qualified personnel, offer quality services, advertise their products, and even offer promotions, helping them overcome the competition in the market structure.
Microsoft's struggles might seem somewhat perplexing, given its stunning success with Windows and the fact that it seems to have pursued a 'related linked' diversification strategy of primarily concentrating on products 'linked' to technology. It has not acquired businesses that are fundamentally anathema to its core product. "Companies' implements related diversification strategies in order to achieve and
Google’s total assets have steadily increased dating back from 2008 to 2012. Some key figures to point out in their assets are the slow growth between the second half of 2008
This essay plans to focus on the corporate strategy of Microsoft, and show how Microsoft has used diversification successfully within their corporate strategy to gain a competitive advantage.
The fourth phase is around year 2005 to 2007 where Alibaba has taken over Yahoo China and creates www.Yahoo.com.cn which allows them to spread their fame and promote their service more effectively. (Yazdanifard, 2014)
Yahoo was an early success due to a combination of factors such as timing, hard work, and a good understanding of Web surfer’s tastes and needs.. In early 1995, Net mania was just flowering. It was a great time to be a young entrepreneur with an Internet idea. Dave Faldo and Jerry Yang saw a consumer need for classifying and differentiating web sights. Resting the urge to automate this process, Yahoo’s founders instead chose to manually perform this search, reviewing and classifying roughly 1000 sights a day. This approach combined with their decision to offer a free service lead to early success.
Yahoo! Inc. is one of the oldest and most well-known Internet content providers. Yahoo! Inc. offers one of the most diverse Internet websites. It is believed that by expanding Yahoo!'s services and expanding broadband access, Yahoo! customers will stay on the website and spend increasing amounts of time and money. Yahoo! Inc's biggest obstacle lies in its competition in the form of
For the past few years, Microsoft Corporation, the software behemoth located in Redmond Washington, has been looking to acquire Yahoo!, Inc. While Microsoft Corp. has numerous reasons to be interested in acquiring Yahoo!, there are few options available for Yahoo! Inc. Like Google’s purchase of Double-Click in 2007, Microsoft sees Yahoo! as a way to extract internet advertising revenue. Further, Microsoft has for years sought to build a winning portal that could dominate the search engine market, currently dominated by Google. MSN was Microsoft’s version of AOL. Even after years of Research &Development in this area, Microsoft still only has 19% of the internet search engine market (and that’s because of ISP bundling and desktop default presets.) Actual search engine use of MSN is much lower than 19%. Google is a money-maker and has a dominating market share. Beyond the search engine market, there also is that “innovation” nirvana for which Microsoft is always searching. It wasn’t Hotmail, it wasn’t MSN maps, it wasn’t SoapBox, and the list of Microsoft Corp. disappointments goes on. Now they decided to go for a big acquisition.
(Joint Ventures). contributed its Australian internet business, Yahoo! Australia and New Zealand, and SEVEN contributed its online assets, television and magazine content (Joint Ventures). Yahoo!
Following the success of Netscape and its web browser, Internet became a resource and communication platform idolized by many IT students in the universities. What started off as a hobby-cum-research[1] work by Jerry Yang (now Chief of Yahoo!) and David Filo (Co-founder of Yahoo!) for their Ph.D. dissertations; has evolved and became an Internet sensation over time. What they did was to compile all their favourite web links to form an online directory for easy navigation in the World Wide Web. The duo’s work immediately garnered a lot of attention from many surfers in the Internet world and before they realized it, Yahoo! became one of the most highly visited websites of all time. The duo saw the