Sweet Spot Case Study

Rahul Gupta 9/11/03 CS453 E-commerce Technologies

Background
‡ Two founders from Stanford: David Filo and Jerry Yang [4] ‡ Started in February 1994 in a campus trailer [7] ‡ Incorporated in March 1995 [6] ‡ In April 1995 funded by Sequoia Capital with an initial investment of about $2 million [7] ‡ Went public in April 1996 [6] ‡ Corporate Headquarters in Sunnyvale, CA [6] ‡ Director and former-CEO of Yahoo, Timothy Koogle, is a Wahoo! [6]

unsophisticated.Why was it started? ‡ Started as a way to keep track of their personal interests on the Internet [7] ‡ Evolved into a complete online navigational guide [7] ‡ Initially called ³Jerry's Guide to the World Wide Web´ [7] ‡ Yahoo! acronym for ³Yet Another Hierarchical Officious Oracle´ [7] ‡ Definition of Yahoo accepted by creators: rude. uncouth [7] .

[6] ‡ Provides commerce services such as shopping. auctions. and classifieds. Greetings. Messenger. games. finance. sports. and weather. [6] . travel. [6] ‡ Provides communications services such as Mail. two-way pagers and PDAs.What¶re the consumer functions? ‡ Provides internet content from over 2000 top-ofthe-industry providers in areas such as news. and Clubs. [6] ‡ Yahoo! Everywhere provides consumers with mobile access to information via devices including wireless phones. Photos.

Yahoo! Auctions. [6] . [6] ‡ Business and Enterprise Services: Integration of commerce. and extra mail storage.What¶re the enterprise functions? ‡ Marketing: Enables agencies and clients to find and connect to audiences through Fusion Marketing. Yahoo! Bill Pay. Yahoo! Yellow Pages. Yahoo! Small Business. [6] ‡ Premium Services: Yahoo! Store. communications and media into web portal and similar services via Corporate Yahoo!. Yahoo! Broadcast Services. Business Express.

5 billion page views a day [5] .Who are the customers? ‡ More than 237 million unique worldwide users in 25 countries and 13 languages (December 2001). [4] ‡ 93 million active registered users [5] ‡ More than 1.

How does Yahoo! compare? Taken from reference [9] .

How it compares cont¶d Taken from reference [9] .

Awards Taken from reference [9] .

Why is Yahoo special? Taken from reference [9] .

Front-end of main portal Taken from reference [1] .

Front-end of Yahoo! Search Taken from reference [2] .

Front-end of Yahoo! Auctions Taken from reference [3] .

Korea . China. Washington DC. Singapore. Central America. San Diego. India. Dallas ± Intl: England. South America. Taiwan. Hong Kong. Santa Clara. Australia. Japan.Back-end ‡ Yahoo at first used a proprietary server-side page language written in C/C++ [5] ‡ Transitioned to PHP in 2002 [5] ‡ 4500+ servers in 16 co-locations [5] ± USA: Sunnyvale.

[6] Taken from reference [6] .Acquisitions Yahoo! has acquired twenty companies since its start.

00 per share and the closing price on that day was $33.Financial information ‡ The opening price of Yahoo!'s stock on the day of the IPO was $13. [6] Taken from reference [10] .00 per share.

07 ± Free Cash Flow: $221.1 million ± Net income (loss): $42.40 ± Net Revenues Total: $953.How¶s Yahoo! doing now? ‡ For Fiscal Year 2002 [8]: ± Revenue per average Unique User per month: $0.8 million ± Net income (loss) per share: Diluted: $0.0 million .

Yahoo! is the World¶s most trafficked Internet destination. [5] ‡ First all-encompassing portal/guide to the Internet [4] ‡ Takes number 1 spot on corporate desktops. workplace[4] .Spectacular successes ‡ According Nielsen/NetRatings 8/2002.S. with a 70%+ reach in the U.

Spectacular successes cont¶d Taken from reference [9] .

auctions. and email. I personally use Google as my main search engine because it gets me what I want quickly and accurately. directories. I predict that it will continue this same trend in the coming years. . It turned a healthy profit early in its history and each year that profit has increased.My Thoughts on Yahoo! ‡ I believe that Yahoo! is going to continue to be very successful due to it¶s extremely wide breadth. sports coverage. but it might not be enough to recapture the customer-base that Google has earned. ‡ Even with so many formidable competitors I believe that overall Yahoo! is still unique due to the fact that it seems to have everything that most people use on a day to day basis such as search. news. movie reviews. ‡ Yahoo! Search is a great feature designed to rival the simplicity of Google. music.

yahoo.yahoo.html Making the Case for PHP at Yahoo!: http://public.yahoo. 2. 3. 5. 6.com/info/pr/faq.htm FAQ: http://docs. Yahoo!: http://www.shopping.com/ Company Overview: http://docs.com/info/misc/overview.yahoo.yahoo.References 1.com/~radwin/talks/yahoo-phpcon2002. 4.html .com Yahoo! Search: http://search.yahoo.com/ Yahoo! Auctions: http://auctions.

The History of Yahoo! .com/wire/story/TWB19990401S0016 .yahoo.html Yahoo! Investor Information: http://yhoo. : http://docs.com/ TechWeb: Yahoo Turns Reputation Into Acquisitions: http://www. 11..yahoo. 9. 8.client.yahoo..References Cont¶d 7.com/info/investor/metrics.html Yahoo! Facts & Figures: http://solutions.com/advertiser_center/research/factsandfigure s.html Supplementary Financial Information: http://docs.com/info/misc/history.techweb.shareholder.How It All Started. 10.

com/docs/pr/release709.com/docs/pr/release990.html . 13. 14.yahoo. 1 Search Destination in the U.S.yahoo. 1 Online Music Destination in the U. 2 Online Shopping Destination by Nielsen/Netratings: http://docs.html Press Release: New Yahoo! Shopping Network Ranked the No.References Cont¶d 12.html Press Release: Yahoo! No. 15. 16.com/docs/pr/release983. Yahoo! Introduces New Yahoo! Search: http://yhoo. According to Nielsen/Netratings' March Marketview Report : http://docs.shareholder.com/docs/pr/release904.html Press Release: Yahoo! No.yahoo.S.cfm?&ReleaseID= 105839 Yahoo! Auctions Introduces Offline Seller's Management Tool: http://docs.com/ReleaseDetail. According to Nielsen/Netratings' Marketview Report: http://docs.yahoo.client.