Problems that yahoo is facing up to:
+Jerry Yang, the co-founder of
Yahoo!, has resigned from its board.
+They’ve
changed the fourth CEO-Scott Thompson (former CEO of eBay ) in the last five
years.
+Total
revenue fell 13% during the last quarter of 2011, while net revenue was $1.17bn
- $20m below analysts' projections. This is the 13th straight quarter that
Yahoo's net revenue has fallen.
+Yahoo's
share price has stagnated at about $15 ever since late 2008, refusing to go
above $20.
+Yahoo
has struggled to keep up with rivals such as Google but it seems they’re left
behind.
+Yahoo
has failed to make serious inroads in the new frontiers of social networking
and mobile
+The organization
is shaking up.
Yahoo’s SWOT analysis:
Strengths:
• Renowned Brand in the world of the
internet.
• It has above 350 million users
regarding its services.
• It is known as a powerful
marketing company as well.
• Ranked in the top 5 of ‘Most
Popular Websites on the Internet’.
• Flickr, a side business of Yahoo,
stands at no. 2 in Photography subcategory, which has over one million unique
users.
• Yahoo Answers also maintains at
no. 2.
• Strong employee base.
• Strong value attached to the name
Yahoo regarding the environment of the office.
Weaknesses:
• Differentiating services are lacked as the website business holds no firm barriers for new entrants.- (i) Search facilities are available on MSN and Google.
- (ii) Free E-mail accounts are available from Hotmail (MSN) or G-Mail (Google), and many, many others.
- (iii) New is available from CNN or the BBC.
- (iv) Shopping is available everywhere on the Internet. Google has Froogle.
• The packages and the services that Yahoo offers are also offered by other services providing sites such as MSN & Google.
• Yahoo, MSN, Google; all three use online advertisements as their income stream generators which makes the competition tough.
• The partners hold a temporary weakness that will affect Yahoo if they were to leave the firm
Opportunities:
• The expansion to newer markets is yet to be tapped (India, China).• Technology plays a vital role; Yahoo should adapt to the changes and innovate considering the trend of the new generation that is going mobile. (mobile softwares and directories etc).
• Yahoo can place its services and solutions at mobile length in the future.
Threats:
• Competition is intense and low cost along with huge profitable ventures attracts investors.• Social networking sites are working as advertisement markets which is stealing the share of other traditional online advertisers like Yahoo.
Yahoo’s future strategic plan:
·
Engage in potential investors to obtain more funds.
·
Maintain and develop its advantages such as
Yahoo’s Messenger or Flickr.
·
Being more innovative, invest in R&D to come
up with new products
·
Provide better customer’s service and
information counter.
·
Making alliance relationships with other
companies (such as facebook, Myspace and so on).
·
To build an explicit Mission objective and
vision.
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