1. Renowned brand in the world after Google.
2. Major income source is from the online advertisement.
3. Provides variety of online free services to the starters.
4. Second most powerful search engine
5. Strong code of ethics around six values, excellence, innovation, customer fixation, team work, community and fun.
6. Revenue from internet interactive advertising is in creasing
7. Revenues are increasing and beating the previous records.
Weakness
1. Differentiating services are lacked due to low barrier to entry.
2. Services offered by yahoo are similarly to its competitors so product differentiation is difficult.
3. Yahoo faces the problem of low growth in various products which it offered.
4. Offering so many products that cause diversion in attention.
Opportunities
1. Strong internet based platform.
2. Opportunity to increase in market share through merger or partnership with other companies like yahoo.
3. Global expansion especially in Asian countries to reduce its operational expenses.
4. Need to capture high growth market
Threat
1. Flat economics conditions
2. Yahoo should adopt such technologies that it can create innovative products.
3. Google have surpassed yahoo in term of revenues and cash flow
4. Changing market trend and consumer preferences..
Financial analysis.
From 2008 to 2009 revenue increased to 3.4 to 7.2 billion however the net income is decreased by 36%. This is due to the increase in administrative and product development expenses. Furthermore in the opening quarter of 2009 the company shows heavy down fall in profits which lead to eventually downsize of approximately 3300 employees. which also lead yahoo to close its third video property maven networks. it further plan to close its sides like yahoo 360 degree.
Yahoo’s performance reflects low growth. Yahoo revenues come from products that are low growth cash cows. The balance scorecard indicates that there could be troubles