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Yahoo! Failure

In: Business and Management

Submitted By atiwari87
Words 1067
Pages 5
The Failure of Yahoo!

LACK OF PRODUCT LEADERSHIP

→ Introduction

‘From Yahoo!'s founding, the company has had its fingers in a lot of pies. Through Bubble 1.0 and Bubble 2.0, the Yahoo! machine was always humming to suck up venture-backed firms at healthy valuations. Integrating them cohesively was a different story and left a string of disparate businesses under the Yahoo! roof. Yahoo! has seen a deep corrosion of its core business over the past few years. To make matters worse, the boon in market share that Google has enjoyed seems to have been cut directly from Yahoo's market share. As compared with MSN/Live, Ask, and AOL, these companies have seen small gains or remained fixed for the most part.

→ Main Issue (Lack of product leadership) & Analysis

Yahoo has seen numerous problems with its products and the management of its products. Instead of focusing on the search engine aspect, Yahoo! has been dipping its toes into other not as profitable side businesses.

Some failed business ventures include Yahoo! 360°, Yahoo! Tech, Yahoo! Mash, Yahoo! Photos, Yahoo! Geocities, and Yahoo! Auctions. These services have, thus far, offered little value to Yahoo!. The company has spent its time and resources maintaining services with a huge, financially unjustified overhead; all the while, its search market share continues to dwindle. In contrast, Google, realizing its product line was stretched too thin, has spent the past 2 years aggressively vertically integrating its various product offerings as features ported across its services. While Google has certainly expanded its horizon, advertising and search technology remain its unwavering focus.

Yahoo! 360° was a social networking and personal communication portal operated by Yahoo! made available in 2005. It enabled users to create personal web sites, share photos from Yahoo! Photos, maintain blogs and...

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