1. Bargaining power of suppliers: Are your firm’s suppliers powerful?

According to Porter, the ability of suppliers to charge higher prices, restrict the quality
of goods and services, and shift costs to other parties can all have an impact on an
industry's ability to compete (Porter, 2008). Internet industry, especially those who
play in the field of content provision, do not know the term suppliers in business
operations, this is because, in the process of providing products (internet content),
they relatively do not need other parties (Muhammad, 2018). Yahoo! is a business-
to-business website that acts as a middleman between some purchasers
(consumers) and sellers (advertisers), on the internet suppliers might set up
procedures to facilitate client seeking and purchasing while discouraging them from
transferring and to keep users searching on the Yahoo! site, Yahoo! primarily relies
on a variety of advertising. Semel transformed Yahoo! into a website that can provide
users with a wide range of services, some of which come with a nominal price.

Menurut Porter, kemampuan supplier untuk membebankan harga yang lebih tinggi,
membatasi kualitas barang dan jasa, dan mengalihkan biaya ke pihak lain semuanya
dapat berdampak pada kemampuan industri untuk bersaing (Porter, 2008). Industri
internet khususnya yang bergerak di bidang penyediaan konten tidak mengenal
istilah supplier dalam operasional bisnisnya, hal ini dikarenakan dalam proses
penyediaan produk (konten internet) relatif tidak membutuhkan pihak lain
(Muhammad, 2018). Yahoo! adalah situs web bisnis-ke-bisnis yang bertindak
sebagai perantara antara beberapa pembeli (konsumen) dan penjual (pengiklan), di
internet supplier dapat mengatur prosedur untuk memfasilitasi pencarian dan
pembelian klien sambil mencegah mereka mentransfer dan membuat para pengguna
tetap menggunakan situs Yahoo! karena Yahoo! terutama bergantung pada berbagai
iklan. Semel (ex CEO Yahoo!) mengubah Yahoo! menjadi situs web yang dapat
menyediakan berbagai layanan kepada pengguna, beberapa di antaranya datang
dengan harga nominal.

Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business
review, 86(1), 25-40

Mohammad, R. (2018). THE DYNAMICS OF INTERNET-BASED MULTINATIONAL

CORPORATIONS IN CHINA: YAHOO! CHINA CASE. Mediasi: Journal of International
Relation, 1(2).

UKEssays. (November 2018). Analysis of Yahoo! Using Porter's Five Forces. Retrieved from
https://www.ukessays.com/essays/management/yahoo-world-wide-web.php?vref=1

2. The threat of substitute products

The potential for replacement goods has increased as a result of widespread Internet use. As
an illustration, consider the multiple business services that Yahoo! has created, such as
expanding its search engine and integrating more and more data. Customers can evaluate
the costs, quality, and customer service offered by other businesses, but so can businesses.
A company can do research on the goods and services that other businesses are offering and
create replacement goods or services. The development of new technologies that
automatically replace the use of industrial items utilizing comparatively older technologies has
a significant impact on the appearance of the substitutes. Google started to pose problems for
Yahoo! at the start of the new millennium. Google is a leading search engine for emerging
technologies. This can replace the web portal approach used by Yahoo! The usage of this
more sophisticated technology caused Yahoo! heyday to fade as people started switching to
replacement goods that are able to provide more complete content. Google's search engine
technology uses more mathematical algorithms when compared to the human-fashioned web
directory developed by Yahoo! previously (Lambert, 2005). A shift in the technology market
that caused their market share to be lost to such technology-based content providers was not
taken seriously by Yahoo!. Although Yahoo! has been working on its own search engine
technology since 2004, this hasn't been able to reverse the company's prior losses in the
battle for market dominance.

Potensi barang pengganti telah meningkat sebagai akibat dari penggunaan Internet yang
meluas. Pelanggan dapat mengevaluasi biaya, kualitas, dan layanan pelanggan yang
ditawarkan oleh bisnis lain. Sebuah perusahaan dapat melakukan penelitian tentang barang
dan jasa yang ditawarkan oleh bisnis lain dan membuat barang atau jasa pengganti.
Perkembangan teknologi baru yang secara otomatis menggantikan penggunaan barang-
barang industri yang memanfaatkan teknologi yang relatif lebih tua memiliki dampak yang
signifikan terhadap munculnya barang-barang pengganti. Google mulai menimbulkan
masalah bagi Yahoo! di awal milenium baru. Penggunaan teknologi yang lebih canggih oleh
Google menyebabkan masa jayanya Yahoo! memudar seiring orang mulai beralih ke barang
pengganti yang mampu memberikan konten yang lebih lengkap. Pergeseran pasar teknologi
yang menyebabkan pangsa pasar mereka kalah dengan penyedia konten berbasis teknologi
tersebut tidak ditanggapi serius oleh Yahoo!. Meskipun Yahoo! telah bekerja pada teknologi
mesin pencari sendiri sejak tahun 2004, ini belum mampu membalikkan kerugian perusahaan
sebelumnya dalam pertempuran untuk dominasi pasar. Sehingga tidak adanya upaya untuk
inovasi produk baru dari Yahoo! membuat mereka tersisih dari pasar search engine.

UKEssays. (November 2018). Yahoo's management strategy. Retrieved from

https://www.ukessays.com/essays/management/yahoo-strategy.php?vref=1

UKEssays. (November 2018). Analysis of Yahoo! Using Porter's Five Forces. Retrieved from
https://www.ukessays.com/essays/management/yahoo-world-wide-web.php?vref=1

Mohammad, R. (2018). THE DYNAMICS OF INTERNET-BASED MULTINATIONAL

CORPORATIONS IN CHINA: YAHOO! CHINA CASE. Mediasi: Journal of International
Relation, 1(2).