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Jason Drohn Bradley Bierer Carol Woods Michelle Victory Paul Rapela
The strategy of implementation of an established dot com company, struggling to leverage current advertising methods with business objectives.
Table of Contents
Forward ......................................................................................................................................3 Executive Summary .....................................................................................................................5 History: .......................................................................................................................................7 Problem ......................................................................................................................................9 Competitive Analysis .................................................................................................................11 Yahoo Financials........................................................................................................................14 Economics .................................................................................................................................21 Demographics ...........................................................................................................................25 Market Analysis.........................................................................................................................32 CPM ..........................................................................................................................................36 SWOT MATRIX:..........................................................................................................................38 QSPM ........................................................................................................................................40 Space Matrix .............................................................................................................................41 Strategic Issues .........................................................................................................................44 Strategy Implementation ..........................................................................................................49 Works Cited ..............................................................................................................................54 Consumer Price Index Summary ...........................................................................................54
This document was written for a Business Policy Class that I took in 2007. The reason I chose Yahoo for the project was because they were in turmoil (and still are) with Google’s spectacular rise in search based on their ad platform, Adwords. At the time, I was getting into Internet marketing and was intimately familiar with how search engine optimization and pay per click marketing worked – so it was an easy correlation for me. You will see some of that come through in the following pages. Google is intimately linked to their search advertising platform, making almost 99% of their total revenue. Something that Yahoo! had the capability to duplicate but didn’t. Since this report, I have helped small businesses and million dollar organizations implement Internet marketing into their day to day operations so that they could beat their competition in this ‘new world’ of web based commerce. If you are interested in learning about Internet marketing – I’ve set up a training course / free report on one of my sites. Just click the link below: http://marketinghackz.com/free-report/ In it, I discuss things like: Search engine optimization Media Buys Pay per click Traditional marketing
Basically, how you can implement all those things into your existing marketing mix for reduced ad spend and maximum ROI. I hope you enjoy this report! It was a lot of fun to write and I hope you learn something from it! Sincerely, Jason Drohn firstname.lastname@example.org @jasondrohn
**All the data contained in this report was taken from Yahoo! Stock analysis, research and best practice implementation. We tried to compare what Google did right with what Yahoo! should be doing. **Understandably, the info is a little outdated but this document gets read by hundreds of people every day, still. I just wanted to take a minute and explain the reasons for which the report was created. **None of us (the authors) work for Yahoo!, have any interest in Yahoo!, or were paid by Yahoo! to create this report. It was merely an assignment we chose to work on and publish online.
Yahoo has grown up as a portal company. They learned early on that by being sticky, by having a web presence that forced users to stay on their site, they could find ways to profit from the page views. This has led Yahoo astray though. Not only has Yahoo given up overall profits in search of ever expanding user acquisition, they have allowed their search product to fall behind. Google, Yahoo’s chief competitor, has mastered the art of monetization, namely through contextual advertising. Contextual advertising is when a small piece of programming code is inserted into web pages which actually interprets the text and serves advertising based on keywords. Google’s offering, Adsense and Adwords, produces 99% of the company’s profits. This advertising network is built into both their search and branded sites. Web publishers are also growing to adopt Google’s version of website advertising to gain monetization for their own traffic. Yahoo has adopted this model of contextual advertising that has been so profitable for Google, but have yet to refine it enough to make a serious impact on the market. The program is still in beta (the internet’s way of saying under-construction) and has not made any headway at attracting new publishers or advertisers. The primary disconnect in the Yahoo model has been the lack of precision, because their search algorithm needs to be updated. The ad network fails to interpret that an article is written about cars, and serves ads about entrepreneurs. Money is only made if a user clicks on the advertisements. This is an interesting dilemma. 5
etc. Google.On the positive side. Each of those sites has products or services that provide value to the user. Email. They should focus on improving their ad network’s efficiency and allowing all publishers admittance. Yahoo needs adopt a like philosophy to remain competitive in their market. is simple and built around search. Yahoo has a brilliant banner serving system. 6 . Cars. In our estimation. Since Yahoo still sees itself as a portal. A user shopping for cars is later targeted with banner ads reflecting the cars that they were viewing online. it still leverages Yahoo Money. They should leverage their banner serving software with the contextual market and provide growth that way. the market leader. Yahoo needs to focus on core content by improving exactly what it is that makes them money.
has become the world’s largest global online network of integrated services (The History of Yahoo!). At the close of its first day of the IPO. is currently headquartered in Sunnyvale. Canada and the United States (Yahoo! Inc). was able to create Yahoo! Japan.00 per share (Yahoo! Inc). was incorporated in California in March of 1995 (Yahoo! Inc). first went public on NASDAQ in April of 1996. Yahoo! Inc. According to the Yahoo! Inc. The company was then reincorporated in Delaware in May of 1999 (Yahoo! Inc). the Asia Pacific. At this time Yahoo!’s stock opened for $13. In December of 1999 Yahoo! Stock was added to the S&P 500 (Yahoo! Inc). California (Yahoo Inc).). In 1996. Yahoo! Inc. Yahoo! Inc. At this time the company only had 49 employees (Yahoo! Inc). Yahoo! Inc. Through this initial joint venture. Yahoo! Inc. Yahoo! Inc. website. Yahoo! Inc.History: Yahoo! Incorporated is an Internet service provider that serves both users and business globally. began entering into joint ventures with SOFTBANK (Joint Ventures).00 per share (Yahoo! Inc. began as a hobby for Filo and Yang and has now evolved into a multifaceted brand that serves internet users worldwide (The History of Yahoo!). Yahoo! is provided to users in more than twenty different languages (Yahoo! Inc). The company also has office locations in Europe. Subsequently 7 . Yahoo! Currently has 500 million users worldwide that visit the site each month. The company was founded in 1994 by David Filo and Jerry Yang who were attending Stanford University’s PhD program (The History of Yahoo!). Latin America. Yahoo! stock had reached a closing price of $33. they have become one of the leading search engines on the World Wide Web (The History of Yahoo!).
Yahoo! Inc. SEVEN. signed an agreement with Yahoo! Inc (Joint Ventures). Yahoo! Australia and New Zealand. has also teamed in a joint venture with VISA to establish Yahoo! Marketplace (Joint Ventures). Yahoo! Inc (Joint Ventures). In this agreement. have teamed in a joint venture as well (Joint Ventures). a photo sharing and storing website (Yahoo! Inc profile). also operates Flickr. and SOFTBANK have also created GeoCities Japan Corporation to create and manage a Japanese version of the GeoCities website (Joint Ventures). and Korea (Joint Ventures). music. and much more (Yahoo! Inc profile). Most recently. Yahoo! Inc. France. This joint venture alone created a new market for Yahoo! Inc (Joint Ventures). an Australian media firm. in January 2006. and SEVEN contributed its online assets. also known as SEVEN. United Kingdom. video. 8 . instant messaging. personals. Yahoo! Inc. This joint venture occurred in August of 1996 and has since then created a navigational service focused on information and resources for the purchase of consumer products and services over the internet (Joint Ventures). The company also provides its users with web mail. contributed its Australian internet business. has teamed with SOFTBANK to create markets in Germany. Yahoo! Inc. and Seven Network Limited . has a fifty percent equity ownership in the joint venture which will operate under the name Yahoo7 (Joint Ventures). Yahoo! Inc. Yahoo! Inc. television and magazine content (Joint Ventures).
might put a banner ad on 9 . For example. The partnering service typically sees a boost in traffic. Finance and Mail. This portal terminology has run so deep that it is engrained in the Yahoo culture. The all inclusive Yahoo is counting on the traffic to be monetized through private advertising deals and partnerships. Yahoo sees their core business as being Yahoo News. the private sponsors are limited to the banner placements that are bought. a well known computer retailer. These joint partnerships are encouraged because it not only brings Yahoo recurring revenue. Newegg. Private advertising is such that a company may put their banner in a prominent location of the Yahoo network. They have made acquisitions such as MyBlogLog and Flickr. There was no clear attempt to either target those users with advertising or extend any real value added services. Private advertising comprises the other side of the revenue deal. For what though? To extend functionality or to increase revenue. Partners usually pay to have their service included in the Yahoo Directory in one form or another. Similar to partnerships. but allows the partner a strategic place in the Yahoo network. Search is a product of users making their way through the Internet. thanks to being networked with such a big web presence. rather than the core of their business. but they have let their search product suffer.com. They have long built out their offering in such a way to add value to their users through functionality while they hoped that revenue would be made in the process.Problem Yahoo is a master of portals.
Why is it that they are trailing Google in revenue then? Because Google allows other publisher’s to maximize the ad network. 82% of Google’s revenue is achieved not on their site.000 a month. Yahoo promotions are concentrated to being served on Yahoo’s pages. but on other web publishers. through the contextual ad system. 10 . This banner ad is then targeted to each and every user who enters the Yahoo home page. those that own their own websites are not able to capitalize on this revenue model. The problem is that web publishers. Yahoo is the most trafficked website on the planet.the Yahoo home page for $50. Publisher’s do not have a chance to leverage Yahoo’s size and revenue potential the way that Google has empowered their users. More pageviews are served from Yahoo servers than any other company in the world.
their communities.Competitive Analysis As taken from the Yahoo 10K. AOL.” However. Yahoo sees itself as a portal “to connect people to their passions. data is not readily available for either section. and the world’s knowledge (Yahoo 10K). because AOL is held as a limited liability corporation and MSN is a division of Microsoft. All of which compete in the industry of “Internet Information Providers. and MSN.” Yahoo’s primary competitors are Google. We expect the market to become increasingly competitive if online marketing continues to grow and gain acceptance on a global basis. “We primarily compete with companies to attract users to our website and advertisers to our marketing services. This critique will have elements from both companies. The first key difference to note is the fact that each company differs in its primary company beliefs. including information taken from Microsoft’s 10K report and AOL’s few public records. most 11 .” Google’s maintains the largest.
Adsense is the destination for web publishers and site owners who have space on their website for ads. Google lives by its advertiser network. also known as the Google Network. Being the most trafficked website on the planet. The webmasters make money every time a Google ad is clicked. Yahoo sells ads for its own network of sites. they define their services differently. “provides personal communications services. and the MSN portals and channels around the world (Microsoft 10K). Yahoo sees itself as a gathering place for people to connect with their passions. and makes this information freely available to anyone with an internet connection. The combination of the two services provides Google with 99% of their revenue. MSN. Yahoo takes a different alternative to the system. The revenue may be further divided between 18% on site advertisement and 81% off site advertisement.” Microsoft’s offering. Although each of these competitors has aligned themselves in the same sector investment wise and serve the same relative target markets. But as the 10K notes. Their automated search technology helps people obtain nearly instant access to relevant information from our vast online index (Google 10K). and online information offerings such as MSN Search. Google is essentially the middleman. Yahoo’s specialty ‘pre-Google’ has been monetizing its own web pages. MapPoint. such as email and instant messaging. comprised of Adwords and Adsense. this demonstrates how they align their business model as well.comprehensive index of web sites and other content. In some sense. Adwords is an online application that allows businesses to publish their ads to the many websites that participate in the Google Network.” AOL is simply an internet service provider who combines the leverage of the Internet with its own branded services. 12 .
The company has yet to solidify its stance in the market concerning the advertising software. you will see a car advertisement.Yahoo’s ad network has proven effective on the front of intelligent ad serving. In the case of attracting advertisers. and further improve our users’ experience. Google has recognized that search is their primary objective. This data is stored for an indefinite amount of time.” They also add. the principal competitive factors are the reach. Yahoo Publisher Network allows the same functionality that the Google Network does.” From this. build onto our existing online properties and services. but is currently in beta. and the usefulness. so in three months a random car ad may show up again. As Yahoo states in their 10K. Yahoo’s service is named Yahoo Publisher Network. 13 . effectiveness and efficiency of our marketing services as well as the creativity of the marketing solutions that we offer. accessibility. The algorithm is built in such a way that it can see where a visitor is going online. one may conclude that Yahoo services play a key role in attracting and retaining users. For instance. if you are looking at a car in Yahoo Autos and travel to Yahoo Money. “The principal competitive factors relating to attracting and retaining users include the quality and relevance of our search results. integration and personalization of the online services that we offer as well as the overall user experience on our website. Whereas. “We believe that we are effectively competing in the Internet services market as we continue to refine our search technology. and serves ads based on those tendencies. Yahoo has only just recently launched an Adwords and Adsense competitor though. within the Yahoo network.
With a 52 week range of 22. revenue has been strong as well since 2002.425.18. we are going to compare several key statistics with Google’s results. which has a P/E of 48.” For slight comparisons.256. Here is a snapshot of the top level financials for Yahoo at the time of writing: Across the top level. 2006 revenues come in at 6.65 to 28. “YHOO. especially when compared to the much more profitable Google.7 (in millions).Yahoo Financials Yahoo trades on the NasdaqGS under the symbol. the stock itself is well traded. Looking at the company snapshot: 14 .57 seems high.86 and a volume of 21. to show where Yahoo needs to be. The current P/E of 55.102.
Yahoo’s chief competitor. in terms of Google.604. Google grew revenues to 10. the key ratios include: 15 .9 (in millions) since the time of IPO offering in 2003. there is a discrepancy.However. There revenue is as follows: Key Ratios: Profitability – Upon further examination of Yahoo.
In 2000 it was 72.7%.73% in 2006.1% .95% in 2005 to 6. Research and development is sitting at 13% in 2006. However. This is a cause for concern. which is higher than Google’s (which comes in at 11. as dropped to 17. This is not the highest it’s been. 16 . This is largely due to the increase of server space and supplemental acquisitions the company has made. Yahoo’s tax rate is 41. This is a positive mark for Yahoo.9 to 37.from 48.41%. up from 30.8 for the last two years. In dropping to the profitability section. though. Google remains strong at 21. These acquisitions include services like Flickr and MyBlogLog. You can see this reflected in Yahoo’s falling numbers. Yahoo Growth rates are the most alarming section in this analysis though.7%. throughout the ten year span of public trading. The EBT.6%). Growth RatesYahoo’s growth rates are as follows: As pictured above. Google’s stands at 34. Google sits at 23.3%. or earnings before tax.Cost of goods sold has increased as one might expect.2%. Perhaps the biggest discrepancy I can see is that Yahoo’s return on assets dropped from 18. Yahoo had amazing growth in the late 90’s and in 2003 and 2004. Google was has stormed on the scene.4%. taking the search and advertising market that previously served with banner ads.
17 .4% increase. Since then Yahoo has fallen to 47.9%. Google posted a 67% increase. and the first year Yahoo had a true competitor.1% growth and 22. -19. Even in the last quarter.Google introduced pay per click services which are the bread and butter of the new search giant. and their free cash flow growth year over year was down -47. 2004 was a big year for internet adoption.6%. respectively. Google’s growth: Google. while Yahoo sank to a 13. having their initial IPO in 2004 has grown exponentially. This could be because of several high priced acquisitions.2% growth in 2005 and 2006. Cash FlowYahoo’s Cash Flow: Yahoo’s operating cash flow was down last year.
because their cash and short-term investments have been decreasing year after year. but 9. landing at 32. Yahoo’s liabilities total is 20. allowing the other 92. The following two pages offer printouts of the full financial statistics.3% though. as compared with Google.6%.8& Short Term Liabilities.5% which they just picked up in the last 4 years.2% to be owned by the stockholders. the current ratio is 2.63. In regards to total current assets the company has noticed a drop year over year in Total Current Assets. leaving the stockholder’s equity at 79. Their Long Term debt is at 6.8% liabilities. and their current assets has been around 2% for the last five years.4. Financial HealthYahoo’s financial health is a point of concern. The company isn’t going bankrupt. Intangibles and Long Term Assets are at 29. They have a Current ratio of 10 and a quick ration of 9.4%. I would imagine these stem largely from their offices and datacenters spread around the world.6% This might seem like an advantage to some. Altogether. Accounts receivable inventory has remained constant. but they still remained in the positive. Google on the other hand demonstrates only 7.Google’s Cash Flow: Google didn’t have a stellar year. That number may have been reduced because of the YouTube acquisition. Yahoo has . because they are leveraging debt to magnify earnings.54 and the quick ratio is 2. The largest concerning factor in this financial analysis is the debt of Yahoo. but if you continue further down. sitting at 45.6% in 2006. but has been trending down badly in the last four years. 18 .9% Accounts Payable.1% of Accrued Liabilities and 2. in regards to cash flow and in comparison to their last couple.
Yahoo’s Financial Health: 19 .
Google Financial Health: 20 .
“the social science that deals with the production. and to devote much greater resources strictly towards advertising. relies heavily on accurate information pertaining to all these factors associated within our economy. Not just what the consumer is spending.” There are many factors and indexes that are tracked to gauge the health of the economy. is an important aspect of their efforts to attract and expand their user and advertiser base. reflecting overall economic conditions and budgeting and buying patterns. Since Yahoo derives most of their revenues from advertising. Yahoo. Yahoo relies on the value of their brand and a failure to maintain or enhance the company brands in a cost-effective manner could harm their operating results. Inc. interest rates. consumer price index. and consumption of goods and services and with the theory and management of economies or economic systems. specifically those that contain the Yahoo name as well as those that do nothing. and strength of the dollar. (10K) Yahoo believes that maintaining and enhancing their brand. any decreases in or delays in advertising spending due to economic conditions could reduce their revenues or negatively impact their ability to grow their revenues. These include gross domestic product. Yahoo has spent considerable money and resources to date on the establishment and maintenance of their brands in which they anticipate spending increasing amounts of money on. more importantly how the economy is doing as a whole. and disposable income.Economics Economics is defined as. distribution. marketing and other brand-building efforts to preserve and most importantly enhance the consumer awareness of 21 . Yahoo’s expenditures by advertisers tend to be cyclical.
The CPI is divided into several different sections.(American heritage dictionary) The CPI includes all goods and services purchased by urban households. transportation.4. This figure means that consumer prices for February 2007 were 103.their brands. The most current CPI statistics from the Bureau of Labor Statistics (BLS) are for February 2007.5 percent to a level of 203. The success of Yahoo is depended upon us. food and beverage. This was an increase of 2. The CPI is most commonly used to measure inflation. Any number above 100 indicates that prices for that year are higher than in the base year. which equals 100 percent. The CPI is computed as a percentage of the cost of certain products as compared to a base year.9 during the same time period.499. 22 .499 percent higher than in the base year. it is with all other Internet Service Providers. The consumer price index (CPI) is a tool used to gauge the economy. the CPI rose by . The prices that are used to calculate the CPI are taken from 87 urban areas throughout the country. (The American Heritage® Dictionary) The current base year is 1982-84. During February 2007. housing . and energy.1.8. The fear is the increase of CPI indexes and the possibility of inflation. Sections include housing. the consumers and much money we are willing to spend on the Internet. and energy . Spending and the availability of monies is not just a major concern with Yahoo. The index for food and beverage increased . and businesses use it as a guide in making economic decisions The CPI is an index of prices used to measure the change in the cost of basic goods and services in comparison with a fixed base period.4 percent since February 2006. transportation .
The FED sets this rate at a level to keep the financial and monetary conditions of the 23 . By manipulating the federal funds rate. the number of users of their services may not grow as anticipated. (10K) Interest rate changes will affect the operating expenses of Yahoo. This increases the importance of their ability to deliver compelling editorial content and personalization of this content for users in order to differentiate Yahoo from Google and MSN. As competition for compelling content increases the prices at which they offer their content to them and potential content providers may not offer their content to Yahoo on terms that can be agreeable to them. Accordingly. or if they do not develop compelling editorial content or personalization services.(FED) The rates established by the FED are used by banks and lending institutions to set the interest rates for loans and credit cards.When consumer prices rise. which will become critical to their success. everything else seems to follow. Further. many of Yahoo’s content licenses with the third parties are non-exclusive. or may decline which could harm their operating and financial results.party affiliates’ and their competitors. their third. or MSN broadcast content that is similar to or the same as that provided by Yahoo. The increases will affect Yahoo’s business relationships with the third-party content providers. the FED tries to control inflation and keep the economy strong while preventing a recession. other webcasters and other media such as radio or television may be able to offer similar or identical content. If Yahoo is unable to license or acquire compelling content at reasonable prices. if Google. Interest rates are controlled by the policy makers of the Federal Reserve Board. An increase in prices charged by the third parties to them could harm their operating and financial condition.
Since June 2006 the federal funds rate has been stable at 5. as noted earlier when the cost of items increases so will others soon to follow. can trigger changes to the short term and long term interest rates.economy in line and adjusts the rate for changing economic conditions. Google and others be concerned? Yes.gov) The FED raises the federal funds rate to slow down economic growth and curb inflation. A change in these rates by the FED. the FED has raised the federal fund rate 17 times. 24 . and stock prices. During the prior two years. They lower the rate to stimulate a sluggish economy and encourage growth.(federalreserve. Should we be concerned? Should Yahoo. The increase in interest rates will affect the anticipation of Yahoo’s much needed expansion into the world of cyberspace. Changes in these rates affect the spending decisions of both households and businesses.25 percent. or the expectation of a change. the foreign exchange value of the dollar.
0 % 35.541 % Usage Population Usage Growth ( % of 2000Penetration World 2007 ) 3.272.574. 10. Yahoo! has a potential global customer base of 1.5 % 0. and Latin America/Caribbean reflect the largest usage growth while North America reflects the lowest growth percentage rate globally in the charted period.7 % 1.627 Oceania / Australia 34.712.7 % 38.538.2 % 33.439. WORLD INTERNET USAGE AND POPULATION STATISTICS Population ( 2007 Est.114.3 % 2.426 16.3% 1.5 % 809.Demographics Internet World Stats (2007) reports as recently as March 10.4% % 248.417 100.009 18.0 % 69.0 % World Regions Africa Asia Europe Middle East North America 933.3 % 53.7 % 20.9 % 10.7 % 433.7 % 638.709.800 398.666.274.1 % 8.727 334.606. Africa. The usage growth period charted is for the years 2000-2007.225 19.792.443 WORLD TOTAL 6.) Population Internet % of Usage.624.9 % 5.018 12.086 96.5 % Latin America/Caribbean 556.8% % 199. World Latest Data 14.9 % 100.426 people who access the Internet.386.424.114. Asia.4 % 142.4 % 115. 2007.700 233. Middle East. Europe.468.452. Of the data presented Asia.7 % % NOTES: (1) Internet Usage and World Population Statistics were updated on Mar.0 208.0 % 1.624 56. (3) 25 .7 % 17.686 193.6 % 10.5 % 491.9% 8.292 3. (2) CLICK on each world region for detailed regional information.065 314. and the Untied States are the three top users of the Internet globally.8 % 28.527.334.448.5 % 3. 2007.188.
Internet World Stats (2007) illustrates that North America had the lowest usage growth rate by world region. (6) Information from this site may be cited. but does reflect the highest Internet global penetration. Miniwatts Marketing Group. Copyright © 2007. see the Site Surfing Guide. All rights reserved worldwide. giving due credit and establishing an active link back to www.Demographic (Population) numbers are based on data contained in the world-gazetteer website. by local NICs. by the International Telecommunications Union. disclaimer. and other other reliable sources. (5) For definitions. 26 .internetworldstats. (4) Internet usage information comes from data published by Nielsen//NetRatings. and navigation help.com .
2007. frequency. The following World Band Group graph was last updated January 11. 1). The United States provides the most information on the use of the Internet in the North American Region. Use the internet Total Adults Women 27 70% 69 .Internet World Stats (2007) presents the following pie chart of the world Internet user. The World Bank Group (2007) charts internet user data. according to our December 2006 survey. and household income. age. 69% of adult women use the internet. Demographics of Internet Users Below is the percentage of each group who use the internet. As an example. The user data can be disaggregated into many forms of information such as: gender. The available information on the use of the Internet globally is inadequate in scope due to the limited number of countries which collect information and communication technology making it difficult to ascertain the market for global Internet industry (pg.
999 $50.000-$74.000 + Educational attainment Less than High School High School Some College College + 71 83% 82 70 33 72% 58 69 49% 75 90 93 36% 59 84 91 The Pew Internet Organization (2007) provides valuable information on the demographics of Internet users in the United States. populace is 28 . The information reveals a large block of the U. populace which actively uses the Internet. Non-Hispanic Black.S.S.999 $75.Men Age 18-29 30-49 50-64 65+ Race/ethnicity White.000-$49.000/yr $30. Non-Hispanic English-speaking Hispanic Household income Less than $30. The largest segment of the U.
326 per year (pg.the 18-29 age groups with an 83% usage rate. the Internet segment for the Hispanic populace is expected to grow as Hispanic’s trail only slightly in the percentage rate of White users.000 plus. According to American demographics (2007) the average family income is $46. 1). Changes in the Hispanic race have increased by 3.3% between 2004 and 2005 (pg. as of January 11. The World Bank group (2007) charts shows Internet usage increases dramatically with the amount of formal education the user possesses. 2007. American demographics (2007) says the Hispanic race is the fastest growing population in the United States. 2). Usage of those with 29 . Combing the American demographics (2007) and the information drawn from the World Bank Group (2007) chart data reveals. use the Internet.000 in household income use the Internet. Combining the American demographics (2007) data and that of the World Bank Group (2007) reflects that the Internet user rate in the United States is at 75%. The income level tops out with a 93% usage rate for household incomes of $75. Following closely behind are the 30-49 age groups with an 82% usage rate and the 50-64 age groups reflecting a 70% usage rate. Race and ethnicity reflect percentage rates of White’s as the largest users of the Internet (pg. 59%. The World Bank Group (2007) chart reflects nearly half of the households with less than $30. 12). More than half of those with a minimum of a high school education. The users with less than a high school education are the lowest Internet users with only a 36% participation rate. The usage rate does rise upward as the household income increases.
The chart tops out with users with a college plus education have an impressive Internet usage rate of 91%. whiles the age group of 50 plus is 75% married. In summary. About 72% of the female and 87% of the male Internet users will access the web everyday. the demographics of the World Bank Group (2007) Internet chart reveals there is very little disparity between the male and female Internet users. The political affiliation of the American Internet user leads towards the Democratic Party. 25%. 21% of those surveyed. The trend in the Internet market continues to change as faster technology is made available to more users. over the Republican Party. 30 . Leslie Taylor (2006) reports. Interestingly. this reflects why the internet usage is 20-30% slower on weekends and the busiest days are Monday-Thursday. The 50 plus group is the highest age group which pays for their Internet access at home. According to the iNetShops (1998-2005) information page over 55% of the users access the Internet from their home computers.some college has an 84% user rate. This information reflects a trend for the gender of the American Internet user is shifting from a largely male percentage to a more equal gender usage percentage when comparing the data from iNetshop (1998-2005) to the World Bank Group (2007) data. Nearly 45% use the web 1-4 times a day. The iNetshops (1998-2005) research also reveals that the martial status of the Internet user is 40% married and 41% unmarried. other users are more likely to gain access to the Internet at work or at school. while 41% claim more frequent use and 15% say they use it less. The age group of 25 and under is about 75% single.
which means 68 percent of active home Internet users now use a broadband connection. The growth in broadband customers will lead to more hours spent using the Internet which by extension should result in a growth in sales for the Internet providers. 31 . home internet users with broadband spent on average 33% more time on line that those using narrow band connections (pg. the trends will be for the gender differential to continue to equalize. the Internet is becoming a central medium in the daily lives of those who have internet access.“broadband penetration grew 13 percent last year to 95. Last year the average user used their computer 30. according to a study released last week by Nielsen//NetRatings. The increase in the number of hours of Internet use corresponds with the American demographic (2007) report.5 hours a month just two years prior.5 million homes.5 hours a month compared to 25. As broadband continues grow in the Internet marketplace. 2).” Taylor’s information also discloses. Internet user habits are changing as the speed of broadband has increased the average person’s usage of the computer at home.
and telemarketing. Yahoo! represents good global corporate citizenship. online. Yahoo!’s commitment to providing specialized marketing services to a diverse global advertising populace is evidenced through their staffing the international offices with indigenous personal. Online sales are directed toward self-service programs which enable advertisers to tailor their websites to specific target markets by attaching links to the websites which directs customers to 32 . Recognizing the different marketing needs of each distinctive market is a fundamental approach for Yahoo!’s marketing strategies. Segmenting each distinctive market into an individual geographic group. This enables Yahoo! to target the segment with customized marketing services unique to the particular geographic market. Yahoo! can offer better customer service by providing for the unique cultural idiosyncrasies of each geographic market segment. The marketing strategy to retain customer loyalty and to continue to build brand recognition is to provide top quality customized marketing services through three primary channels of communication: direct. Yahoo! can manage and measuring each segment geographically. The Yahoo! brand is a highly recognized service on the Internet both in marketing and search services.Market Analysis The Yahoo! 10 K report (2007) states. By utilizing the input of indigenous personal. The direct sales team’s focal point is selling Yahoo!’s marketing services and solutions to large advertisers. The services are offered to advertisers and their customers in over 20 different languages and countries. Yahoo promotes their marketing services in a highly competitive and rapidly changing global Internet market. Yahoo! considers developing world-class marketing is their competitive advantage in the volatile market of cyberspace technology.
The use of all forms of advertising is “to bring the right service to the right people at the right time” (pg. The combining action promotes Yahoo!’s competitive advantage strategy of continuing to provide customized advertising to attract. retain. Combing the management teams under one managerial umbrella facilitates collaboration between the two services. The media consists of: online. and the best method to convey the services to the advertisers and the Internet user. Telemarketing’s focal point is providing marketing services to medium and small advertisers. and engage users while experiencing demographic changes in the geographic market segments. 33 . 12). radio and outdoor advertising. print. Yahoo! recently combined the management of Yahoo!’s marketing services with their search services to better meet the demands of the customers. management to understand our services. Yahoo!’s fundamental marketing approach is the continuance of product development and properly managing each market segment to ensure the Internet user is experiencing the best services Yahoo! can offer.advertisers’ products. television. Yahoo! ascertains their marketing sector is involved in each step of product development. Yahoo!’s marketing program utilizes all forms of media to convey their products to the geographical audiences of existing and potential users. Collaborative communication will synthesize Yahoo!’s internal strengths with new technological advancements to adjoin value-added components to their services.
Yahoo! staffs sales offices in eleven major cities dispersed throughout the 34 . By informing advertisers to the website visiting habits of their customers. A user in the registration process gives their “demographic DNA” away to the information data bank. Yahoo! to aid the advertisers with additional data for their website designs (pg. Allowing. Yahoo!’s information pool is derived from another source Yahoo! has crafted into their marketing strategy. 2). The advertisers are enabled to make critical marketing amendments to adapt quickly to the changes taking place in their particular market share. At present. Yahoo! has to adapt to the changes in demographic trends being experienced in the United States market. The data and service additions coincide with the customized marketing strategy centered on the geographical target markets established by Yahoo!.The customized marketing strategy is consistent with the development under “Yahoo! Fusion Services” according to Joan Raymond (2001). Yahoo! continues to market their services to the Internet users (pg. 1). The “Fusion Service” integrated an additional service in 2001 called “Yahoo! ?Buzz Index. Yahoo! requires their users to register for their search services.” The Buzz Index “gives a snapshot of what’s hot and what’s not” with daily updates on data drawn from the visited websites which Yahoo! informs the advertisers with the derived data (pg. North America has the highest Internet usage penetration by population than any other global market. The marketing strategies which Yahoo! has in place at present will enable them to react quickly to geographic target market shifts. To provide for the customized service for the United States in particular. according to statistics by the Demographics of the Internet User (2007). As Yahoo! strives to provide world-class marketing to the Internet user. 3).
monthly user time increases by 30% after the installation of broadband connections are made available to users.states (Yahoo! 10K 2007. Leslie Taylor (2006) states. Yahoo!’s customized geographic market segment approach will be able to handle the emerging market trends and integrate the pooled data for advertisers to implement advertising tactics to increase market penetration. Yahoo! should experience an increase in the user population as broadband technology reaches a larger high-speed Internet audience. pg. 35 . Target marketing the United States as one of their geographical market segments. 12).
60 0.45 0.20 3.20 2 3 4 0.15 0.45 0.55 4 3 2 0.45 0.40 4 3 0.30 0.60 0.10 0.2 36 .40 0.CPM Competitive Profile Matrix Yahoo Google MSN Critical Success Factors Weight Ratin g Scor e Ratin g Scor e Ratin g Scor e Strong Brand Recognition Talented Employee Base Culture of Innovation/Accountability Advertising International Markets Powerful Business Relationships Customer Loyalty Market Share Total 0.00 3 4 3 0.40 3 4 4 0.10 4 3 0.30 4 4 0.10 1.60 0.60 0.30 3.15 0.60 0.40 3.60 0.80 4 4 2 0.20 0.60 0.15 0.20 0.15 0.05 0.40 0.15 0.40 4 3 3 0.
Yahoo! lags behind considerably in comparison to Google and MSN on the culture and innovation and accountability factor.15. .10. Yahoo!’s score on this factor is the highest in comparison to their two chief competitors. yet leads MSN. . Maintaining strong brand recognition to retain market share is rated and scored highly in the industry by all three companies on the matrix. 37 . Market share weight.05. on Yahoo’s CPM does not reflect a high level in ranking the critical success factors. yet remaining ahead of MSN. Yahoo! ranks and scores evenly with Google. rates and scores equal to MSN. the industry leader for this factor. discloses Yahoo’s ranking and score as second to Google.Yahoo!’s competitive profile matrix (CPM) weighs international markets. .10. The customer loyalty factor weight. Weighing the powerful business relationships factor the least. Talented employee base weight.20. yet behind Google. The factor weight. yet lags behind Google.10. . rates Yahoo! and MSN equal. shows Yahoo! is second to Google. assigned which replicates a high level of importance on the CPM. . as the most important item on the list of critical success factors.15. but does release valuable information in comparison to their competitors on the CPM. The advertising factor weight. Google and MSN. . . Yahoo! rates and scores the lowest on this factor. Strong brand recognition has a weight. yet MSN holds the top score and rating on this factor. reflecting a distinctive competitive advantage in the Internet market.015. .
SWOT MATRIX: STRENGTHS: 1) Yahoo! Inc. has many more auxiliary products compared to the competition. SO STRATEGIES: 1) S3 O1 : Revamp the current video site and encourage advertising on the site by using the strong brand strength and recognition of Yahoo!. 3) W2 O2: Increase Flickr’s capabilities in order to reverse the decline in mage search on Yahoo! 38 . 3) Google search results generate twice as much revenue as Yahoo!. 3) Yahoo! Inc. 2) S5 O2: Use Flickr as a new means of advertising for the partnerships with VISA. 3) Broadband expansion. MLB and NFL. falling due to WEAKNESSES: 1) Yahoo! is ranked 5 in visitors among video sites. 2) Yahoo! image search has been declining 3% per year. 5) Partnerships with revenues are MLB. has beaten Google in the mobile market. 3) S4 O5: Use Yahoo!’s current expanded to market to target advertisers in these countries. 5) Yahoo! Has penetrated markets that are still untouched by competitors. 2) Yahoo! Inc. OPPORTUNITIES: 1) Internet video advertising spending expected to increase by 82% to $410 million by 2006. Google and other competitors in the market. VISA and NFL. YouTube which is owned by Google is ranked 1st. has strong brand recognition. 2) Yahoo! Inc has purchased Flickr. 4) Advertising th 2) W1 O2: Use Flickr as a tool to developing a better video site. WO STRATEGIES: 1) W1 O1: Use internet video advertising boom to strengthen Yahoo! video sites. 4) Access is available to anyone with internet access. 4) Yahoo! has a strong and talented employee base.
Yahoo!’s most predominant strength is their brand recognition. the company should use their strong brand recognition to entice more advertisers for their site. WT STRATEGIES: 1) W4 T1: Increase advertising for Yahoo! search engines to increase users. In developing a strategy for Yahoo!.THREATS: 1) Google commands about 50% of all online searches and Yahoo! has only 24% according to Neilson/NetRating. 39 . 2) S3 T4: Use Yahoo! brand recognition to build a social website through Yahoo! Inc. 5) Google is surpassing Yahoo! in revenues. 3) Increasing strength of competitors. They also must concentrate their efforts on upgrading and advancing their target advertising capabilities. 2) Consumer attitudes towards online advertising may become more negative. NFL and VISA to promote searches on Yahoo!. 4) Social websites such as MySpace and Facebook are now breaking into the online advertising market. ST STRATEGIES: 1) S3 S5 T1: Use Yahoo!’s brand recognition and its partnerships with MLB. After developing the SWOT matrix it seems to be in the company’s best interest to pursue a strategy that focuses on increasing their advertising revenues.
1 0.1 0.1 0.05 0.8 0. NFL and VISA 0.4 6.1 n/a 1 1 1 1 n/a 0.8 Strategy 2 AS 3 4 4 TAS 0. YouTube owned by Google is 1st Image search has been declining 3% per year Google search results generate twice as much revenue than Yahoo! Advertising revenues are falling due to competition 0.1 0.2 0. should consider implementing a strategy that increases the desirability of their video site.2 0.4 7.05 0.05 0. Yahoo! Inc.4 0. 40 .1 0.2 THREATS: Google command about 50% of all online searches and Yahoo! has only 24% Consumer attitudes towards online advertising may become more negative Increasing strength of competitors Social websites are no breaking into the advertising market (MySpace) Google is surpassing Yahoo! in revenues 0.1 0.5 2 4 4 4 4 0.6 0.05 0. However.1 1 n/a 2 2 2 1 n/a 0.2 0.4 0.55 Strategy 1: Google search results generate twice as much revenue per year than Yahoo! Strategy 2: Google Commands 50% of all online searches and Yahoo has only 24% Conclusion: Both strategies are desirable for the company.1 0.4 0.2 0.4 0.2 0.1 STRENGTHS: Yahoo! Inc has beaten Google in the mobile market Yahoo! Inc has many auxiliary operations Strong brand recognition Access available to anyone with internet access Partnerships with MLB. Strategy 1 is slightly higher in desirability at this time.1 0.8 0.2 1 1 2 2 2 0.1 1 2 1 2 0.05 0.1 0.1 0.QSPM KEY FACTORS OPPORTUNITIES: Internet video advertising expected to increase by 82%.1 0.4 0.1 0.05 0.4 0. Yahoo! Inc has purchased Flickr Broadband expansion WEIGH T Strategy 1 AS 4 4 4 TAS 0.1 0.2 0.1 0.8 2 WEAKNESSES: Ranked 5th in visitors among video sites.2 0.8 2 1 4 4 4 4 0.
Space Matrix Conservative 3 2 1 0 CA -2 -1 0 1 2 3 Defensive ES Competitve 1 2 3 IS FS Aggressive INTERNAL STRATEGIC POSITION FINANCIAL STRENGTH Market Capital Return on Equity Current Ratio Gross Profit Margin COMPETITVE ADVANATAGE Market share Customer loyalty Website quality Technological know how 41 EXTERNAL STRATEGIC POSITION ENVIRONMENTAL STABILITY Technological Changes Rates of Inflation Demand variability Competitive pressure INDUSTRY STRENGTH Growth potential Profit potential Financial stability Ease of entry into the market .
38 billion. Google is 150. The industry is stable due to the increasing use of the internet.7 million. The current ratio for Yahoo! is 2.FINANCIAL STRENGTH The market capital for Yahoo! is 37. Customer loyalty is very low. -1 -5 -1 -3 -5 -1 -4 5 5 5 5 42 .26% and the industry is 12. Demand is relatively stable for advertising on the internet. Inflation will hinder profit in overseas ventures. New internet companies are not as lucrative as Yahoo! and Google so therefore the ease of entry into the market is relatively low. There is an increase in competitive pressure between Yahoo!.75 billion and Google is 6.54. -13 COMPETETIVE ADVANTAGE The market share is increasing globally. MSN and other well known companies. The return on equity for Yahoo! is 8. Google is 10. Google is 23.5%. 20 ENVIRONEMENTAL STABILITY Technological changes are occurring rapidly.1%.03 billion and the industry is 296. Websites are increasing in quality and ease for all users. There is an increase in the amount of advertiser spending on the internet which will create high profit potential.25 billion. The gross profit margin for Yahoo! is 3. Google. RATING 2 1 3 3 9 INDUSTRY STRENGTH There is unlimited growth potential in the industry due to the increasing use of the internet.
.25 + (+2. 43 . This along with the SWOT matrix shows that Yahoo! should pursue a strategy that increases their advertising revenue by upgrading their target advertising capabilities. The SPACE matrix has shown that Yahoo! Inc.5. CA Average is -10/4 = -2.Technological changes are increasing the demand for technological experts.25. FS Average is 9/4 = 2.75 Y-axis: -3. defensive or competitive. -3 -10 CONCLUSION ES Average is -13/4 = -3.5 + (+5) = 2. should pursue a strategy that is conservative rather than aggressive.25 X-axis: -2. Directional Vector Coordinates: IS Average is 20/4 = 5.25) = -1 Yahoo! should pursue conservative strategies.
CPM. As discussed in the previous sections of this report though. A website who’s primary motive is connecting the world with it’s information. They grew up a purveyor of portals. The search feature is straightforward and simple.Strategic Issues As demonstrated in the QSPM. Yahoo’s search product has suffered considerably. Yahoo tried to remain ‘sticky. In addition.’ so that users would have incentive to come back. Instead. because of expansion into other areas. and it is increasing every quarter Increasing strength of competitors in the portal market 44 . the company focused supreme effort in the realm of content. Yahoo sees itself as a portal company. This is a fantastic goal. This precise area was long thought to be Google’s weakness. The lack of a ‘sign in feature’ would permit users to go elsewhere. it has brought more people to the site because Google is easy to use and not feature laden. Google has added the advertising network. There are four basic problems which are the source of Yahoo’s falling revenue and reduced cash flow. Instead. forgetting that it was the reason people visited their site. Those issues are: Google’s Search results generate twice as much revenue as Yahoo’s search results. marketing the ads as a further enabler. but one that Yahoo needs to abandon. Advertising rates are falling due to Google and other competitors Google commands about 50% of all online searches. but began to feel content in their search. and SWOT matrix. Yahoo has significant issues in the category of search.
and only when they are clicked by a user. on the other hand. In 2005.6 billion. Until then. Therefore.1 billion. Google has opened up their advertising network to outside publishers. This has led to very tight connections between keywords and ad placements.3 billion in 2005. namely webmasters with smaller sites. The reason? Search. This ‘beta’ program has been in development for over a year. 45 . Yahoo generated $6. The problem is Yahoo will need to take these publishers away from Google’s products. Google’s figures came in at approximately $6. and it is rumored that Yahoo pays a higher share of those ad dollars than their rival. This total was up from $5. because advertisements which are displayed are not cohesive with the content provided. Google. Yahoo has begun development of a similar ad network which will take advantage of the large base of independent website owners. had revenues of $10. buy who still generate traffic. Google has consistently honed its search algorithm to include the advertising network. Yahoo needs to invest time and money into perfecting the algorithm which serves those ads. The system is still flawed though. the webmaster shares in the profit. When an ad is click on their site. Furthermore.Google’s search results generate twice as much revenue as Yahoo’s results: In 2006. they will remain in second place. Advertisers pay when their ads are displayed next to relevant content.4 billion in revenue.
hence lowering the overall revenue of the larger companies. 46 . it is search. and it is increasing every quarter In order for Yahoo to challenge the quickly growing Google. Google and Yahoo offer a premium service. With the minor competition though. Yahoo needs to clean up their ad serving algorithm before they will recognize a shift in their revenues. they need to refocus on what their users are there for . so they charge more. Autos. The keywords which are the anchor for the advertisement process are starting to decrease in price because of increased competition through the entire sector. or Groups.Advertising rates are falling due to Google and other competitors At the time of this writing. It isn’t Yahoo Finance. When that search is cluttered. irrelevant. Their competitors charge less so that they may capture customers. or wrong. Each of these minor competitors have less identifiable brands and little to no traffic to capitalize on. Plain and simple. Google commands about 50% of all online searches. the average cost of a pay per click advertisement has fallen. but none are as uniquely positioned except for Google. With Google’s prevalence and the minor competitors.search. Yahoo has hundreds of competitors in the PPC and web advertising market. it drives users away.
Once their core competencies have shifted successfully from a portal strategy to a company relying on its search algorithm. The company needs to come to the realization that search is their future. In Summary Yahoo is being challenged on four fronts. Yahoo’s strategy of providing content which users sift through is being challenged.” Yahoo has done a brilliant job conveying this role to its users. etc. These competitors are social networking sites. Google’s dominance in the search and advertising space. They have spent millions of dollars to build out the site and acquire web commodities. for the contextual advertising market. all so their visitors will stay longer. they can begin to implement the advertising strategies that have proven useful in banner ad integration. mailing capabilities. uploaded images. They are wrought with user generated content. and the changing face of portals. These include lower revenues in the advertising networks due to competitors. The major weakness of this strategy is that there are competitors doing better. Social networks are the sites that allow users to connect. all tied closely to search. They allow users to connect. 47 .Increasing strength of competitors in the portal market A portal is defined as “a starting point for Web activities. inefficient search results. with advertising intertwined.
quantifying the links and keywords in a format that Google has yet to recognize. they would instantaneously be served an ad for that spyware solution. and that problem will disappear. if a user clicked on the link. This new advertising structure will need to be expanded to meet the demands of the independent webmasters in charge of various. niche sites.The first step is refining their search algorithm. People are leaving because the search results aren’t as relevant as Google’s. So change the algorithm to account for more factors than Google’s does. their search engine is flawed. though. they can deliver smarter text advertising. 48 . they can leverage the power of social networks and blogs. For example. and the link is placed in the word spyware. By Yahoo focusing on improving its search algorithm. Clean up the search results. or anchor words which transport you to another site. they will be directly addressing their diminishing user base. if a user is reading an article about spyware removal. Advertisers are advertising with Yahoo because their implementation is faulty. but also the surrounding keywords. then Yahoo would be able to distinguish that three words before ‘spyware removal’ was the brand name of a piece of software. Yahoo can be the dominant search engine by applying a new age search algorithm to its rankings. Payouts should be slightly higher because they are breaking into Google’s area. For instance. In short. Coupled with this algorithm. Yahoo may even combine their intense focus on portals to deliver more focused results in their queries. Yahoo is the only search engine that not only quantifies the linking text. Then.
the outside influence will increase Yahoo’s revenue. Refocus the Advertising Network 5. All in all. Implement the Algorithm 4. Refine the Algorithm 3.In the end. Their ad network will be integrated into the search algorithm to pick up related keywords in linking text and content. Strategy Implementation Yahoo will move forward with one core competency. Yahoo needs to deliver a more value added product. Not in the form of more portal pages or more section to their website. This will be coupled with webmaster utilization so that outside publishers may benefit from Yahoo’s resources and advertising network. The strategic implementation will follow this path: 1. The rest can be harnessed from that. They will focus their resources on developing the algorithm necessary to key in on social networks and portals because of their background in the history. which is search. Expand the Ad Network 6. They will design and implement a better solution. Implement Outside Publishers 49 . Redirect Employees 2. but a more flawless search engine.
This will take place in a top-down manner. They will simply be redirected. not make it better. Once there. Their desks. First the upper level managers will be met with.000 employees will need to be notified in one form or another. forming the foundation of the new company strategy. The first day.Redirect Employees The strategic implementation will be such that no employees will be laid off. Their new initiative will be to forget about expansion. The next step will be redirecting employees work habits. it will be possible to start separating the individuals into team so that the search strategy can be attacked. For those who will be switching groups (going from the portal philosophy to the search initiative). and refine the search capabilities of the site. The core mission of Yahoo for over a decade has been to focus as a portal. They will have a new cubicle or office with the search team. will be switched. each of the 10. or whether the managers believe it is necessary to alert them individually. Some will work through code while others will research. 50 . then down from there. The first thing that needs to be done is alert everyone of the change. they will all be contacted. one task oriented and one more inclined to deal with the emotional side. They were told to expand the network. they will be moved to different offices. Depending on the shift patterns. Hence. computers. In charge of the project will also be two individuals. etc.
He will instead focus on the design aspects and how they relate to the coding. Those same researchers will be responsible for trying to break it. After the search is sufficiently refined. They will test for the validity of the page ranking techniques and make sure that everything is on par. This will entail the variables of a groups who have been tasked with research. The programmers will begin to put their thoughts into something a computer can interpret. or under their supervision to some extent. They are the ones who will provide the ideas and thoughts on the setup. The task oriented will issue objectives. In traditional coding projects. up to 90% of the time is put into the planning stage. After the algorithm has been coded. otherwise known as coding. they will alert the managers and the programmers and come up with a solution as soon as possible. He will not be pushing the researchers to extraordinary limits. If there are discrepancies. 51 . it will be tested thoroughly. but will play a sub-crucial role in the projects development. They will apply the research and programming knowledge to plan out and refine a new algorithm for Yahoo. Therefore. it goes to the implementation phase. the emotionally oriented leader will be the one coaching this session.Refine the Algorithm This team will then come together under the two project managers.
Refocus the Advertising Network With the successful product launch. Once the launch has been successfully pulled off. This can be done through online ads placed at high traffic sites. it is necessary to market it efficiently. The algorithm should be soft launched without any real marketing behind it initially.Implement the Algorithm This phase is simply the rollout of the new search algorithm. They will be the soft touch of the advertisement relaunch. the mass of users need to test out the algorithm before it is marketed thoroughly. Emergency coding may be necessary as well. This can be done using the techniques used before the new algorithm. This stage will call for ‘all hands on deck’ to combat issues taking place in the algorithm itself. it is now necessary to integrate the advertising software into the search engine. and led by the emotionally oriented leader. The people who researched the algorithm will be tasked with promoting the new features on the website. such as was done when Yahoo got their facelift six months ago. but using better keyword data which the new search algorithm is providing. The task oriented manager will be at the helm of the advertising network relaunch. In order to successfully work. 52 .
The Implementation of Outside Publishers As the final step in the relaunch. If the search algorithm is failing.Expand the Ad Network The expansion of the ad network will include accepting new advertisers and publishers into the advertisement process. The Summary This search engine relaunch is a difficult and painstaking process. providing for the existing ones. The researchers will be encouraging new publishers to sign up and handling the emails. then an advertising network built on top of it will be leaking dollars. while approving the new publishers. getting new publishers. the coders will continue to refine the advertisement algorithms so that it ensures absolute targeting. and handling feedback. This strategy will help Yahoo maintain the brand while allowing it to refocus the core of its business. The other employees will continue to handle the soft side of the business. 53 . Having a good base to establish a advertising network is the best way to go forward for growth. Infrastructure needs will be handled by the programmers. but it will refocus the business in the most profitable way possible.
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