Caso Yahoo

Yahoo! Inc. - 2009

Case Notes Prepared by: Dr. Mernoush Banton

Case Authors: Hamid Kazeroony

A. Case Abstract

Yahoo! Inc. (www.yahoo.com) is a comprehensive strategic management case that includes the company’s Calendar year-end December 31, 2008 financial statements, competitor information and more. The case time setting is the year 2009. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Headquartered in Sunnyvale, California, Yahoo! Inc. is traded on the New York Stock Exchange under ticker symbol YHOO.

B. Vision Statement (Actual)

Yahoo! powers and delights our communities of users, advertisers, and publishers — all of us united in creating indispensable experiences, and fueled by trust.

C. Mission Statement (Actual)

To connect people to their passions, their communities, and the world's knowledge. To ensure this, Yahoo offers a broad and deep array of products and services to create unique and differentiated user experiences and consumer insights by leveraging connections, data, and user participation

Mission Statement

Company’s Values, as stated in their web site, states:

Excellence:

We are committed to winning with integrity. We know leadership is hard won and should never be taken for granted. We aspire to flawless execution and don't take shortcuts on quality. We seek the best talent and promote its development. We are flexible and learn from our mistakes. (2, 5, 6, 9)

Innovation:

We thrive on creativity and ingenuity. We seek the innovations and ideas that can change the world. We anticipate market trends and move quickly to embrace them. We are not afraid to take informed, responsible risk. (4)

Customer Fixation:

We respect our customers above all else and never forget that they come to us by choice. We share a personal responsibility to maintain our customers' loyalty and trust. We listen and respond to our customers and seek to exceed their expectations. (1, 3)

Teamwork:

We treat one another with respect and communicate openly. We foster collaboration while maintaining individual accountability. We encourage the best ideas to surface from anywhere within the organization. We appreciate the value of multiple perspectives and diverse expertise. (8)

Community:

We share an infectious sense of mission to make an impact on society and empower consumers in ways never before possible. We are committed to serving both the Internet community and our own communities. (7)

Fun:

We believe humor is essential to success. We applaud irreverence and don't take ourselves too seriously. We celebrate achievement. We yodel.

1. Customer

2. Products or services

3. Markets

4. Technology

5. Concern for survival, profitability, growth

6. Philosophy

7. Self-concept

8. Concern for public image

9. Concern for employees

D. External Audit

CPM – Competitive Profile Matrix

Yahoo Google Microsoft

Critical Success Factors Weight Rating Weighted Score Rating Weighted Score Rating Weighted Score

Advertising 0.10 3 0.30 4 0.40 1 0.10

Service / Product Quality 0.10 3 0.30 4 0.40 2 0.20

Price Competitiveness 0.07 3 0.21 2 0.14 1 0.07

Management 0.06 2 0.12 4 0.24 3 0.18

Financial Position 0.09 2 0.18 3 0.27 4 0.36

Customer Loyalty 0.10 3 0.30 4 0.40 2 0.20

Product Lines 0.08 3 0.24 4 0.32 2 0.16

Market Share 0.10 3 0.30 4 0.40 2 0.20

Customer Service 0.07 3 0.21 4 0.28 2 0.14

Technology 0.10 3 0.30 4 0.40 2 0.20

Employees 0.05 3 0.15 2 0.10 1 0.05

Global Expansion 0.08 3 0.24 4 0.32 2 0.16

Total 1.00 2.85 3.67 2.02

Opportunities

1. 1.1 billion Internet users around the world as of 2006 and it is still growing

2. Internet advertising revenues in the U.S. remains strong, topping $23 billion in 2008

3. Consumers are spending more of their time online

4. 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

Threats

1. Due to weak economic conditions, Internet related businesses also have suffered

2. In 2009, a number of Internet content and advertising companies reported disappointing financial results and lowered their forward financial outlooks

3. Low entry barrier makes the viability of existing Internet based businesses difficult

4. Changes in legislative requirements concerning technology sharing, patent rights and information security could increase future expenses and lower profitability

5. Constant technology changes causes difficulty to be up-to-date all the time

6. Consolidations among Internet-based providers could make the competition to be strong

External Factor Evaluation (EFE) Matrix

Key External Factors Weight Rating Weighted Score

Opportunities

1. 1.1 billion Internet users around the world as of 2006 and it is still growing 0.1 4 0.4

2. Internet advertising revenues in the U.S. remains strong, topping $23 billion in 2008 0.08 3 0.24

3. Consumers are spending more of their time online 0.08 3 0.24

4. New business strategies such as bundling Internet access with voice and video services are increasing 0.09 2 0.18

5. Innovativeness in technology is the driving force in Internet-based businesses 0.07 2 0.14

6. Many businesses overseas are finding advertising on Internet less expensive and more responsive 0.09 3 0.27

7. Countries such as China and India have stronger economic status and accordingly, the companies are able to spend more advertising dollars via Internet 0.07 2 0.14

Threats

1. Due to weak economic conditions, Internet related businesses also have suffered 0.09 3 0.27

2. In 2009, a number of Internet content and advertising companies reported disappointing financial results and lowered their forward financial

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