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| Yahoo! |
In early age of internet usage
yahoo was the prime platform for search and email. But over time yahoo slowly lost
its popularity and finally on July 22nd 2016 the mammoth business #yahoo
was taken over by #Verizon for $4.83 billion.
But the point is where they go
wrong.
Yahoo statistics: Financial
drop:
The brand started the journey
in 1994. And its manage to accumulate 200 million unique visitors per month and
it became the second most popular multi – web platform. Headquarter situated
Sunnyvale, California, Yahoo has offices in 25 countries with more than 12000
full time employee.
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| 26.07.2016 Facts |
The company’s operating
expenses of all its facilities and services totaled 4.4 billion
U.S. dollars in the 2014 fiscal year. Also in 2014, Yahoo!'s net income reached
7.5 billion U.S. dollars, having sky-rocketed from previous year’s value of 1.3
billion, while its revenue was
a reported 4.6 billion U.S. dollars, a decrease in comparison to 2008 numbers,
when the company registered an all-time high of 7.2 billion and had just
finished the prior year with $1.9 billion in profits on $5.3 billion in revenue.
Yahoo as well as all web-companies
faced financial trouble due to Google domination of search engine market. But yahoo
considered giving competition. Statistics says only 4% of internet users are
using yahoo’s services and 88% uses the Google. As result revenue
soared from $717 million in 2001 to nearly $7 billion by 2007.
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| Google |
Yahoo made the big mistake to
not recognize the trend which easily acquire by google platform. Google just
made a boom to its users by expanded beyond search to establish successful
smart phone applications.
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| Other Social Media Analysis |
Opportunity with flicker: Flicker announced a photo
sharing platform before instagram or facebook, then also yahoo missed the opportunity
followed by GeoCities, Delicious and, most recently, Tumblr.
Hand with Facebook:
Mark Zuckerberg turned the offer down, from
yahoo in 2006 with an amount of $1 billion.
Rejecting Microsoft:
Yahoo received an offer from Microsoft of $44.6
billion but denied as they found it “too low” for them. But in the following
year they signed with “Microsoft Bing” as they gave up the efforts of creating their
own search engine.
Lack of strong leadership:
Every company must have a strong backbone like Apple
under Steve Jobs, Microsoft under Satya Nadella, and Google under Eric Schmidt
as examples. But yahoo failed to hire such strong chief officer to execute
their strategies. CEO Semel one of the drawback, while the co-founder Yang
stepped away from the company in 2012.
Lacking of clear business:
One of most prominent weakness is the lacking of clear
target. Where google and facebook produce a giant stage for the users yahoo
failed to work together its own search engine, and struggled to capitalise on
the social potential of Flickr and Tumblr.
The larger picture behind all this:
Verizon, bought AOL last year, has announced a $4.8bn
(£3.7bn) takeover of Yahoo on Monday. They are taking the core business
including the web service, mail, home page. Shareholder are leaving to Alibaba and yahoo japan. Yahoo was formed as a company which provide the email service,
photo sharing, and news like sports, entertainments, finance and many others. Later
surpassed by other search engines and social media channels. Current chief Ms Mayer tried hard to grow with
this business but failed to bring back the spark.
