Strategic Analysis
-------------------------------------------------
Yahoo! Inc.
Executive Summary 3 Introduction 3 Company Overview 4 Mandate 5 Stakeholders 6 External Analysis 6 Competitive Forces 6 Macro Environment 7 Internal Analysis 8 Appendix 10
Executive Summary
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 Google, AOL, and MSN. Google has dominated the search market, which is a large portion of the revenue for an Internet provider. Yahoo! has diversified its services to offset the losses in the market for search engines and the accompanying advertising revenue. Yahoo!'s greatest challenges are to expand its market share and continue delivering returns to its shareholders.
Yahoo is being challenged on four fronts, all tied closely to search. These include lower revenues in the advertising networks due to competitors, Google’s dominance in the search and advertising space, inefficient search results, and the changing face of portals.
The company needs to come to the realization that search is their future, with advertising intertwined. Now that Yahoo! Inc.’s core competencies have shifted successfully from a portal strategy to a company relying on its search algorithm, they can begin to implement the advertising strategies that have proven useful and in the end, needs to deliver a more value added product.
Introduction
Yahoo! Inc. has become one of the world's largest global online networks of integrated services with more than 500 million users worldwide. However, intensity of rivalry in its industry is increasing, with