Yahoo Incorporation: Capabilities and Strategies

Introduction to Yahoo Incorporation

Yahoo Incorporation is a leading multinational company. The “firm is famous for Yahoo search engine, mail services, news, video sharing, and social networking” (Palepu, Srinivasan, Lane, & Cornell, 2011, p. 3). The company’s products support the needs of many consumers in every part of the globe. The firm is currently identifying new business strategies to become successful. However, Yahoo is facing enormous competition from different companies such as Google. This essay examines the capabilities of Yahoo. The paper also identifies the best strategies that can deal with the above problem.

Yahoo’s Strategic Priorities

Yahoo Incorporation has identified several strategic priorities to emerge successfully. The firm is “also encountering much pressure from its stakeholders to improve its performance” (Palepu et al., 2011, p. 4). Some challenges such as competition are forcing the firm to focus on the best business practices. A proper problem statement will support the company’s future objectives (Kesler & Kates, 2010). A proper understanding of the company’s internal and external environments will result in better strategic practices. The SWOT Analysis below examines the major issues associated with Yahoo’s performance.

Yahoo SWOT Analysis

Strengths

  • Yahoo’s products have been attracting many users.
  • Yahoo has “a large email subscriber base” (Palepu et al., 2011, p. 6).
  • The company boasts of many products.
  • Yahoo is a respected global brand.

Weaknesses

  • Yahoo’s stake in the industry has decreased significantly.
  • The firm’s financial status is no longer appealing.
  • Many internet users no longer recognize the firm’s products.
  • Yahoo is unable to differentiate its products.
  • Many competitors are providing similar services.

Opportunities

  • The global market is presenting new business opportunities for many firms.
  • The company’s directory attracts many advertisers.
  • The current use of mobile apps is a great opportunity for Yahoo Incorporation.
  • The firm offers both services and online platforms.
  • Many people are using the internet.

Threats

  • Many Chinese and Indian companies are providing similar services.
  • Yahoo must address the cultural issues experienced in the global market.
  • Google is growing rapidly.
  • Different social sites such as MySpace have cannibalized the advertising market.

Yahoo provides quality services and products to many global customers. However, the level of competition from firms such as Facebook, Google, and MSN is affecting Yahoo’s business (Carlson, 2015). Many foreign companies have created superior search engines. The above SWOT Analysis explains why Yahoo should identify new strategic priorities. The priority “embraced by the company is to attract more users” (Carlson, 2015, p. 21). The company is also liaising with different partners to achieve its goals (Carlson, 2015). The managers are working hard to increase Yahoo’s adverts. The firm also plans to produce differentiated products. The decision to “leverage data across its advertising platforms will improve the level of product personalization” (Carlson, 2015, p. 27).

Current Gaps at Yahoo

The above SWOT Analysis also identifies several gaps that affect Yahoo’s performance. To begin with, Yahoo is a web-based firm. This situation explains why the level of competition has been high. China and India have also developed their search engines. Many users are also able to get valid news from TV channels such as BBC and Aljazeera. The firm also partners with various telecommunication providers to offer quality services (Carlson, 2015). This problem statement explains why a powerful strategy is needed to support Yahoo’s objectives. The Six Design Drivers (SDDs) presented below can also address the gaps affecting Yahoo.

Table 1: Design Drivers

Management Attention The management team should hire new product developers and leaders.
Leveraged Resources The firm should improve the competitiveness of its products. Yahoo should offer quality products to attract more customers.
Coordination and Integration The firm should also form new teams. New research and development (R&D) techniques will support the above gaps.
Specialization The firm should have specialized roles.
Control and Accountability Every employee and programmer should be accountable. The CEO should monitor every organizational practice.
Learning and Motivation Workers should be motivated to become innovative. Managers should support their employees using effective learning opportunities.

Yahoo’s Capabilities and Recommendations

Yahoo Incorporation has several capabilities. For instance, Yahoo’s global presence makes it a leading brand. The company has many customers in Africa, Asia, Australia, and Europe. The company offers original information to many users. Yahoo is also improving its services to offer the best customer experience. Yahoo has competent leaders who can support every targeted goal. That being the case, Yahoo should hire knowledgeable employees who can produce the best results. The firm should also mentor such workers using quality training programs. Yahoo Inc. should also streamline its products and operations (Kesler & Kates, 2010). The firm should support its projects to succeed.

Conclusion

Yahoo Inc. has provided “quality email services, web content, and advertising opportunities to many customers” (Palepu et al., 2011, p. 4). However, this practice has not addressed Yahoo’s woes. A proper strategy is required to deal with competition. Yahoo should use the above Six Design Drivers (SDDs) to emerge successfully. The managers should hire competent programmers who can streamline Yahoo’s operations. This practice will ensure the company supports its strategic priorities.

Reference List

Carlson, N. (2015). Marissa Mayer and the Fight to Save Yahoo. New York, NY: Twelve Press.

Kesler, G., & Kates, A. (2010). Leading Organization Design: How to Make Organization Design Decisions to Drive the Results You Want. New York, NY: Jossey-Bass.

Palepu, K., Srinivasan, S., Lane, D., & Cornell, I. (2011). Strategy and Governance at Yahoo! Incorporation. Harvard Business School, 1(1), 1-33.