Case Report on Yahoo (1) (1)
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Transcript of Case Report on Yahoo (1) (1)
OUTLINE FOR A WRITTEN CASE REPORT
Case Report on Yahoo! Inc. - 2009Prepared by: Ancheta, Abigail M.Rueco, Reia Doreen M.Title PageTable of ContentsIntroductionEnvironmental AnalysisProblem DefinitionAlternative Courses of ActionChosen Alternative and implementationSummary of AnalysisReferencesTechnical AppendicesIntroduction
Y A H O O-"Yet Another Hierarchically Organized Oracle
Yahoos Vision & Mission Statement
General Worksheet for Analyzing Current SituationEnvironmentRelevant IssuesCase ImpactCase importanceGeneral EnvironmentSocial
Consumers spend more and more of their time online
Consumers negative attitude towards online advertising
Changing preferences of users
Positive
Negative
NegativeYahoo! Inc. needs to take advantage of this growing market
Potential decrease in revenues from Advertising
Yahoo needs to provide continuous innovations and upgraded features that could maintain and attract users for their website.
General Worksheet for Analyzing Current SituationEnvironmentRelevant IssuesCase ImpactCase importanceGeneral EnvironmentSocial
Consumers spend more and more of their time online
Consumers negative attitude towards online advertising
Changing preferences of users
Positive
Negative
NegativeYahoo! Inc. needs to take advantage of this growing market
Potential decrease in revenues from Advertising
Yahoo needs to provide continuous innovations and upgraded features that could maintain and attract users for their website.
General Worksheet for Analyzing Current SituationEnvironmentRelevant IssuesCase ImpactCase importanceGeneral EnvironmentEconomic
Cyclical Expenditures of Yahoos advertisers
Increase in Consumer Price
Increase in Interest RatesPositive and Negative
Negative
NegativeThe success of Yahoo is dependent on how much consumers are willing to spend on the internet
Content Providers may not offer their content to Yahoo on terms agreeable to them
It will affect Yahoos much needed expansion into the world of cyberspace
General Worksheet for Analyzing Current SituationEnvironmentRelevant IssuesCase ImpactCase importanceGeneral EnvironmentPolitical & Legal
Privacy Regulation legislated by the congress
Flexible Access Rules for users.
Negative
Positive
NegativeThe ability to reach/attract a large market/audience with low barriers to entry would be difficult.There would be an increase of percentage in the users patronizing the website.
Because of the easy access of users, Yahoo could no longer monitor legal actions regarding the advertisements that pop-ups in their website.General Worksheet for Analyzing Current SituationEnvironmentRelevant IssuesCase ImpactCase importanceGeneral EnvironmentTechnological
Advancement in technology
Specialized marketingPositive and Negative
Positive
It can affect the competitive position and market share of Yahoo depending on how well it adapts to the development of the internet
Segmenting distinctive market into individual group enables Yahoo to target the segment with customized marketing service to the specific market.General Worksheet for Analyzing Current SituationEnvironmentRelevant IssuesCase ImpactCase importanceOperating EnvironmentInternational
International Culture (China and India have developed their own search engines)
Changing Country requirementsNegative
NegativeThere needs to be a series of substantial competitive advantages for Yahoo to remain as International brand.
Requirements concerning technological sharing, copyrights, etc varies upon the country or area. Therefore expenditures and profitability are harder to predict.General Worksheet for Analyzing Current SituationEnvironmentRelevant IssuesCase ImpactCase importanceOperating EnvironmentSuppliers & LaborStrong and talented labor force
Wide array of servicesPositive
NegativeCould be able to establish a good relationship among their users because of the positive feedback.
Too many areas covered by Yahoo would it hard for them to take a look to every detail their users are into.General Worksheet for Analyzing Current SituationEnvironmentRelevant IssuesCase ImpactCase importanceOperating EnvironmentCompetition
Google search engine is more preferred by the majority of users
Social Networking Websites are now breaking into Advertising Market
Websites are increasing in quality and ease for all users
NegativeAdvertising revenues are failing and customer loyalty decreases
General Worksheet for Analyzing Current SituationEnvironmentRelevant IssuesCase ImpactCase importanceOperating EnvironmentCustomers
Specific Products offered by yahoo to specific target markets
Expanded customer base by offering services up to 45 languagesPositive
PositiveYahoo! Finance are preferred by people involved in corporate activities, investors, company stakeholders, etc. Another is Yahoo! Answers appeals more for students engaged in academic activities
Most consumers prefer to use internet by their native languages; hence the service is more attractive for themGeneral Worksheet for Analyzing Current SituationEnvironmentRelevant IssuesCase ImpactCase importanceInternal EnvironmentOrganizational
Partnerships with telecommunication providers
Partnerships with MLB, VISA,NFL and Microsoft
Purchasing of FlickrPositive and Negative
Positive
PositiveA fee-based yahoo package is included but if the telephone company is changed/removed, income stream is affected
Larger market and strategic revenue earning resources and opportunities along with image branding
New means of advertisingGeneral Worksheet for Analyzing Current SituationEnvironmentRelevant IssuesCase ImpactCase importanceInternal EnvironmentMarketing
Broadband expansion
Strong brand recognition
Mobile Market Domination
Positive
More hours spent in the internet = potential growth in sales
Increased consumer confidence over Yahoo!s services
Promotion of searches and services
Additional Source of Revenue/Income
General Worksheet for Analyzing Current SituationEnvironmentRelevant IssuesCase ImpactCase importanceInternal EnvironmentMarketing
Differentiation is difficult for Yahoo
Yahoo felt contented on their search engine product and expanded into other areas
Adoption of Contextual Advertising
NegativeUse of alternatives(customers tend to shift from using services offered by Yahoo!)
Users are dissatisfied which causes them to look for a better search engine that would yield them relevant results
The program is still in beta and has not made any headway at attracting new publishers/advertisers.
General Worksheet for Analyzing Current SituationEnvironmentRelevant IssuesCase ImpactCase importanceInternal EnvironmentFinancial
Increase in R and D expenses
Decreasing Net income
Increased LiabilitiesPositive
Negative
NegativeMore innovations put Yahoo at a competitive advantage
these issues left stockholders at a disadvantageGeneral Worksheet For Defining Problems and their Core ElementsMAJOR PROBLEM OR ISSUEDescription of problem or issue:
Yahoo's search engine was considered as their minor concern and expanded into other areasEvidence that this is a major problem or issue:
Facts a. Yahoo focused supreme effort in the realm of content (Yahoo sees their core business as being Yahoo News, Finance and Mail. ) b. Yahoo focused on direct revenue generating streams like private advertising deals and partnerships. (They have made acquisitions such as MyBloglog and Flickr) c. Yahoo failed to update their search product which resulted to a flawed engine. The primary disconnect in the yahoo model of search engine has been the lack of precision (cluttered, irrelevant and wrong search results)
General Worksheet For Defining Problems and their Core ElementsMAJOR PROBLEM OR ISSUEEvidence that this is a major problem or issue:
2. Symptoms or other effects of the problem
Diminishing User base - Users tend to shift to other search engines device for reliable and relevant reports
Advertising Rates are falling - Through contextual advertising, advertisements which are displayed on yahoo's search result sites are not cohesive with the content provided so advertisers and web publishers are discouraged to put up their advertisements via yahoo.General Worksheet For Defining Problems and their Core ElementsMAJOR PROBLEM OR ISSUEEvidence that this is a major problem or issue:
Opinions
Focused on delivering more portal pages and additional sections to their websites resulted to high percentage of uninterested users in visiting Yahoos website. Too feature laden website makes users annoyed and irritated hence leaving Yahoo.General Worksheet For Defining Problems and their Core ElementsMAJOR PROBLEM OR ISSUEEvidence that this is a major problem or issue:
Assumptions
Due to the expansion of Yahoo to other areas, direction and focus was no longer obtained because of the broader scope which is harder to monitor and control.
General Worksheet for Evaluating Alternative Courses of ActionAlternative 1Description of Alternative:
By implementing the functional strategy, Yahoo will move forward with one core competency, which is searchStrengths of Alternative:
Regaining Users Confidence over Yahoos products/ServicesRefocusing the business in the most profitable way possibleEnsuring that the achievement of stronger and lasting position in the market is not compromised by its short-term survival means
Weaknesses of Alternative:
The relaunch of better search engine is a difficult and painstaking processRestructuring the foundation of yahoos core mission would cause a lot of sacrifices for some of its segments that generate direct revenue
General Worksheet for Evaluating Alternative Courses of ActionAlternative 1Overall evaluation of Alternative:Giving focus to a one-core competency gives Yahoo an edge in establishing user's satisfactions therefore bringing back itself to the limelight, while this strategy may seem very difficult to pull off, having a good base (which is the refined search engine) to establish an advertising network is necessary for Yahoo to go forward for growth.
General Worksheet for Implementing the Chosen AlternativeWhat should be done to implement the chosen alternative effectively?Specific recommendation:-Conduction of research & developmentJustification: -This is to keep track on the developing techniques on how to improve and achieve the refinement needed for the search engine.2. Who should be responsible in implementing the chosen alternative?Specific recommendation: -The responsibility will always be from top to bottom specially for large companies like Yahoo! Inc.Justification:-To facilitate better control over the implementation of the alternative.
General Worksheet for Implementing the Chosen Alternative3. When and where should the chosen alternative be implemented?
Specific recommendation: ASAP4. How should the chosen alternative be implemented?Specific recommendation:Refocus investments on Research and Development.
SUMMARY OF ANALYSISYahoo must've considered their search engine device as their primary concern in order to develop a good relation with that of their users which could be their potential clients.Yahoo needs to refocus on what their users are there for-search. It isn't Yahoo Finance, autos or groups, it is search. Plain and simple. Clean up the search results and the rest can be harnessed from that.Yahoo's main revenue source is advertising. If Yahoo couldn't do anything about it's search engine, user base will continue to diminish, advertisers will shift to other competitors so the revenue will keep on a downward trend. Stockholders would be dissatisfied, and in the near future, Yahoo might not be able to operate on its own and would possibly end up to divestment.Yahoo operates in the Internet products, services and content markets, which are characterized by rapid change, converging technologies and increasing competition. Operating different areas is not the main problem of Yahoo for it also serve as its competitive advantage over the others, but what matters is to have focus and control over those area in order to be in pace with the fast-moving demand in the internet world.