Yahoo Case Study

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Yahoo Business Model: Yahoo was co-founded in 1994 by two Stanford University graduates, Jerry Yang and David Filo (Yahoo Inc.). The Yahoo business model was to be an information provider and internet search engine, making money from display (banner) and search ads. Was this business model a success? It certainly would appear that this business model has been a success, a company that started out as a hobby for two Stanford students became a recognized global brand, changing the way people communicate with each other, as well as the way they find and access information online. The company was able to experience rapid growth and secured $2 million of funding from Sequoia Capital in 1995. By 2010 Yahoo attracted approximately half a…show more content…
The recession in 2008/09 also lead to an overall reduction in online ad spend (IAB 2010) which naturally impacted Yahoo. The company also continues to be rumored to a merger with AOL in the press and the long term future for the company certainly appears to be uncertain. What if I had been Yahoo CEO? One of the things I would have tried to achieve as Yahoo CEO was to find a public face for the organization. Companies within the computer industry that have had success appear to have benefitted significantly by having a strong public face of the company. Examples include Bill Gates at Microsoft, Mark Zukerberg at Facebook and Steve Jobs at Apple. The other thing that I would have tried to address is the ongoing issue of whether Yahoo is actually a consumer or advertising business. If I were Yahoo CEO I would have developed the packages and the services that Yahoo offers. They are also offered by other services providers such as MSN and Google. I think the Mail Box is so important to attract new potential users and it has to be developed with advertising and new services. Technology plays a vital role; Yahoo should adapt

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