August 23 2014
Raj
Abstract
Yahoo! business model is to perform value creation activities to maximum its long run profitability in the internet advertising industry. Yahoo! first started as a simple directory. And today, it’s a global internet communication, commerce, and media company that serve 237 million individual users monthly. Because of the huge number of users now are using Yahoo! as a first look up website, its advertising revenue become a lot. To have a competitive advantage and get maximum profitability, Yahoo! decided to pursue vertical integration strategy. The benefit of vertical integration is to increase the quality of their products.
Yahoo Business Model
Introduction
Yahoo! Inc. is an American multinational Internet corporation headquartered in Sunnyvale, California. It is globally known for its Web portal, search engine Yahoo Search, and related services, including Yahoo Directory, Yahoo Mail, Yahoo News, Yahoo Finance, Yahoo Groups, Yahoo Answers, advertising, online mapping, video sharing, fantasy sports and its social media website. It is one of the most popular sites in the United States.
According to news sources, roughly 700 million people visit Yahoo websites every month. Yahoo was founded by Jerry Yang and David Filo in January 1994 and was incorporated on March 1, 1995. On July 16, 2012, former Google executive Marissa Mayer was named as Yahoo CEO and President, effective July 17, 2012.
According to comScore, Yahoo during July 2013 surpassed Google on the number of United States visitors to its Web sites for the first time since May 2011, set at 196 million United States visitors, having increased by 21 percent in a year. Yahoo grew rapidly throughout the 1990s. Like engines and Web directories, Yahoo added a web portal. By 1998, Yahoo! was the most popular starting point for web users. It also made many high-profile acquisitions. Its stock price skyrocketed during the dot-com bubble, Yahoo stocks
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