Professional Documents
Culture Documents
Assumptions
1. General Environment Stability
Markets:
At least 1.575 billion visitors yearly by 2008.
global network of Yahoo! websites receives an average of 3.4 billion page views per day as
of October 2007
Competitors:
Google
American Online (AOL).
Segments:
It operates the web portal which provides content including the latest news,
entertainment, sports, and it also gives users a quick access to other Yahoo! services
like the Yahoo! Mail, Yahoo! Maps, Yahoo! Finance, Yahoo! Groups and the Yahoo!
Messenger.
services are available globally in more than 20 languages.
Communication
Yahoo! provides internet communication services such as Yahoo! Messenger and
Yahoo! Mail which has become the largest e-mail service in the world.
On March 2007, Yahoo! announced that this service would offer unlimited storage
space. It also offers social networking services and user-generated content such as
Yahoo! Personals, Flick, Yahoo! Buzz and the like.
Content
Yahoo! partners with hundreds of leading content providers on sports, finance
music, movies, news, answers and games to provide media content, news and
information
It also provides personalized services which enables users to collect their own
favorite Yahoo! features, content feeds and information into a single page.
Mobile
Yahoo!Mobile includes services for on-the-go messaging such as email, instant
messaging, and mobile blogging.
It also offers mobile applications like games, ringtones, search and alerts, etc.
OneSearch
OneSearch is an internet search system introduced by Yahoo! that was developed
for mobile phones on March 20, 2007.
The results, based on the calculations that Yahoo! computers make on the
information that the user is seeking, are listed on single page and are prioritized into
categories.
Commerce
Yahoo! offers commerce services like Yahoo! Shopping, Yahoo! Autos, Yahoo! Real
Estate and Yahoo! Travel.
It enables users to gather relevant information, make business transactions, and
purchases online.
In addition, it offers an e-commerce platform called Yahoo! Merchant Solutions (or
Yahoo! Store).
It hosts Top 500 internet retailers that any other e-commerce platforms.
Small Business
Yahoo! provides services for small business owners and professionals to allow them
to build their own online stores using Yahoo!s tools
It also offers HotJobs to help recruiters find the talent they seek.
Advertising
Yahoo! Search Marketing provides services that let different businesses advertise
their products and services on the Yahoo! network.
Yahoo! Publisher Network is an advertising tool for online publishers to place
advertisements relevant to their content
In addition, a new internet advertisement sales system was launched on 2007 called
Panama which allows advertisers to bid for search terms based on their popularity
to display their ads on search results pages.
Yahoo! BOSS
This is a new service that allows developers to build search applications based on
Yahoos search technology.
Yahoo!Meme
This is a beta social service which is similar to the popular networking site, Twitter.
Yahoo! Next
This is currently in its beta testing phase. It contains forums for Yahoo! users to give
feedback for the development of the future Yahoo! technologies and platforms.
III. PROBLEM STATEMENT
Declining revenue
1. Time Context : Year 2009
2. View point:
CEO
Weaknesses
1. Increase in revenue
from 2007 to 2008 by
2.
3.
4.
5.
6.
7.
Opportunities
S-O Strategies
1. Implement a vertical or
horizontal integration
(forward or backward) of a
company that has global
presence (S2, S6, S7, O1,
O2, O3, O4, O5)
2. Increase advertising
spending by additional
10% on fee based
segments (S7, O4)
3. Cutback prices on
advertising and fee based
W-O Strategies
1. Acquire innovative
technology / Internet
related businesses using
a combination of cash and
debt (W3, W5, O2, O4,
O5)
2. Sell off low profit
segments and pay down
the long term debt (W4,
O1)
New business
strategies such as
bundling Internet
access with voice and
video services are
increasing
5. Innovativeness in
technology is the driving
force in Internet-based
businesses
6. Many businesses
overseas are finding
advertising on Internet
less expensive and
more responsive
7. Countries such as
China and India have
stronger economic
status and accordingly,
the companies are able
to spend more
advertising dollars via
Internet
4.
Threats
W-T Strategies
S-T Strategies
1. Offer new marketing data 1. Improve innovation to
collection for advertisers
protect the companys
(S2, S6, T2)
technology, patent rights
2. Create additional bundling
and information security
partnership for sound or
(W3, W4, T4)
video streaming (S3, T3,
T5)
FS
Conservative
Aggressive
7
6
5
4
3
2
1
CS
IS
-7
-6
-5
-4
-3
-2
-1
-1
-2
-3
-4
-5
-6
-7
Defensive
Competitive
ES
Financial Stability (FS)
Return on Investment
Leverage
Liquidity
Working Capital
6
5
6
6
-5
-3
-3
-2
Cash Flow
Financial Stability (FS) Average
5.8
-1
-1
-2
-2
-2
-1.6
Barriers to Entry
-6
-3.8
6
5
2
5
6
4.8
Quadrant II
Strong
Competitive
Position
Quadrant III
1. Market Development
2. Market Penetration
3. Product Development
Quadrant IV
4.
5.
6.
7.
Forward Integration
Backward Integration
Horizontal Integration
Related Diversification
Strong
3.0 to 4.0
I
Average
2.0 to 2.99
II
Weak
1.0 to 1.99
III
IV
IV
VI
High
3.0 to
3.99
The EFE
Total
Weighte
d Score
Yahoo! Stores,
Inc.
Medium
2.0 to
2.99
VII
VIII
IX
Low
1.0 to
1.99
3. EFE Matrix
Weight
Rating
Weighted
Score
Total
0.1
0.4
0.08
0.24
0.08
0.24
0.09
0.18
0.07
0.14
0.09
0.27
0.07
0.14
0.09
0.27
0.07
0.14
0.06
0.12
0.07
0.21
0.08
0.16
0.05
0.1
1.00
2.61
Weight
Rating
Weighted
Score
0.07
0.14
0.1
0.4
0.07
0.28
0.09
0.27
0.06
0.24
0.08
0.32
0.1
0.4
0.08
0.16
0.1
0.2
0.08
0.16
0.08
0.16
0.09
0.18
Total
1.00
Strengths
2.91