Yahoo Company Failure Analysis

Yahoo Company Failure Analysis


Strategy in business world is the way a business or an organization plans and takes actions in order to achieve its targeted goals. A company that is strategically organized and placed is crucial to its success. Strategy in terms of how it runs and operates its activities, its employment methods and basically what it does differently from other companies. In our today’s society, there is to much competition due to the increased number of companies offering the same kind of service or manufacturing the same kind of product. Companies have to device new strategies in areas such as advertising, manufacturing to mention but a few.  Different organizations have also poached professionals who are renown in their fields. They have offered them hefty packages to bring their expertise and develop the company. Companies venturing in various sectors such as information technology, service industry such as hotel to mention but a few have to diversify their methods to survive in the harsh business world. Many companies have experienced either success or failure depending on the methods or strategies they employed in running the companies. Good strategies yield good returns whereas poor ones result to poor results in terms of profit and company growth. In my paper l am going to focus on a company that has experienced strategic failure. I am going to be looking at the strategies the company employed, definition of failure and decline and an analysis of the failure and decline of the company. I am also going to suggest preventive measures the company can take in order to prevent failure.

Yahoo company Structure Overview

Today Yahoo! has its headquarters in Sunnyvale in California and is one of the leading internet websites providing clients with a range of services including free e-mail, news, maps, and an advanced search engine. The company concept began not only in a high-tech computer laboratory but also in 1994 by using the campus trailer at Stanford University. David Filo and Jerry Yang, PhD candidates from Stanford, were looking for a way to organize their favorite website via the Internet.  Filo and Yang built a hierarchy of their favorites instead of a searchable database of web pages. As the personal site pair lists grew larger, the categories broke down and subdivided again as the categories became too huge. They then broke down each category. The foundation for Yahoo’s evolution has been this creation of favorite categories and subsections. Initially, Filo and Yang chose “Jerry and David’s World Wide Web Guide” as a descriptive yet bland moniker. But in April 1994 in Yahoo, they changed their names. The names of these two craftsmen claim to have picked the word “Another Yeshua” because they would like to define the Yahoo supplied by Gulliver’s Jonathan Swift. But shortly Filo and Yang found out that many others would like to organize their favorite websites in this way. Yahoo! and his essential software were stored on their personal work stations. Hundreds of people accessed the friends’ internet guide shortly after it was launched. In the fall of 1994, Yahoo! logged its first million-hit day, showing approximately 100,000 unique visitors to the site. On 2 March 1995, Filo and Yang realized that they had hit into a potentially successful and lucrative website and started looking for financial assistance. Sequoia Capital, the same company that put money in Apple Computer, Atari and cisco.

Systems, with an initial investment of $2 million, agreed to finance Yahoo. After presenting on his idea at the already well-known Silicon Valley to a number of risk capitalist. Yahoo! was running and willing to succeed in the future in financial problems. Yahoo! swiftly assembled the management team of key technological experts. Tim Koogle, Stanford Engineering Alum and former employee of Motorola were the Chief Executive Officer. As the chief operating officer of Yahoo!, signed by Jeffrey Mallet, founder of Nov ell’s consumer division, Word Perfect. In autumn 1995, Yahoo! may easily get more money with the new manager of Reuters Ltd. and Soft bank. A few months later on 12 April 1996, Yahoo! began a successful IPO that only employed 49 people and sold 2.6 million share shares at $13 a share (total $33.8 million). Yahoo! joins in 1996 with Soft bank and its affiliates to launch Yahoo! Japan and Yahoo! Europe.

Definition of Failure and Decline 

Failure is when one does not achieve his or her set objectives. In the business world a company that is said to have failed is one that has one either achieved in targeted goals in areas of growth, employee capacity and empowerment and profit generation. Decline on the other hand is when a there is gradual reduction in the strength of something. In the business community, if a company is said to be undergoing decline, it means it has the possibility of falling.

Analysis of the failure and decline of the company

Yahoo, who was created in 1994 by Jerry Yang and David Filo was one of the pioneers of the early 1990’s. Yahoo! is Yahoo!, Yahoo! Directory, Yahoo! Mail, Yahoo! News or Yahoo! Finance to list only a few Yahoo! services. With various services that cover the most people, the company quickly becomes a completed website. Yahoo! was the most popular site in the world in the early 2000s just prior to dot-com booming.  In the 2000s the company piled up false alternatives and eventually lost its full usefulness. In 2017, even Yahoo! activities were split into two halves. Thus, Verizon purchased Yahoo$4.48 billion Internet division, with its yahoo and Ali baba Japan held in Altaba, the firm that was newly established. It’s 2019 and even if Yahoo! is still in the top ten of the world’s most frequented locations, how the corporation could recapture its former grandeur is difficult to see. It appears even condemned now to plant such a vegetation. . This led me to return to the six reasons why, I think, Yahoo! did not prosper while the business had numerous assets and was a member of the GAFAM club.


Lack of Clear Vision

The whole public Internet was still early in 1994, and although there was still a relatively low number of websites, web pages on specific areas of interest were difficult to identify. Therefore,

Yahoo company analysis

The objective is to develop a heretical directory for web pages by Jerry Yang and David Filo. Eventually, in March of 1994 this directory was renamed Yahoo!, previously known as the “Jerry and David Wide Web Guide.” A search engine which indexes web pages to crawlers is therefore contrary to the principle of hierarchical sites within the directory. However, Yahoo! took full advantage of the first mover from the start, which quickly became a requirement and an entire web gateway for other businesses.

After its introduction to the general public in 1996, Yahoo is a direct competition for the industry in Locos, Excite and America Online. The result is that the share price rose 600 percent in the first two years!

All this is okay, but Yahoo! doesn’t really get a vision of the future. However, since 1998 Yahoo is the most popular point of departure for Internet users, this heel of Achilles remains well disguised at that time. Yahoo! Directory is also the most famous 95 million-page viewing engine, which is around three times the size of its primary contender, Excite. Yahoo! is a human directory which is nevertheless a massive portion. Yahoo! Yahoo! also offers a search engine that indexes but does not fund the development of a search engine that, in retrospect, is a major bug. The failure of the Yahoo leaders to purchase Google’s Page Rank technology was much larger at this time when Sergey Brin and Larry Page visited them in 1998.

Finally, in 2000, Yahoo! began to use Google’s search engine services, which enabled Google to gain fame and develop quicker. Yahoo’s failure analysis shows his lack of future vision


expanding purchases in all directions without expenditure on developing purchases. The lack of goals and vision of Yahoo! managers peaked in 2002 when they refused to buy Google for 3 billion dollars, thinking it was overstated… Remember that in 1999 they bought Geo Cities and’s $3.6 billion and $5.7 billion! The possibility that Yahoo will ever be the same, such as the introduction of social networks or the transformation to mobile fiction.

How to prevent failure and Decline

Attracting talent

The competing enterprises, especially Google, have frequently disrupted a sizeable web ecosystem distinct from when It does not necessarily agree with Ken Sena. Innovation was the key for Yahoo, a firm which has been static for decades, while rivals anticipated digital trends such as the advent of social media and mobile networking more Yahoo controlled. “His experience is going to be precious,” stated Sena. “I believe it can be argued that Marissa understands Yahoo pretty well perhaps already. Probably for a while she’s studied it.”

He too recommends that some Yahoo services “shut down and, finally, outsourced or shutdown” should be made available. He says, or as Van Boskir puts it, “the Splinternet plan” must be developed by the corporation to address the development of the mobile web. To properly innovate, Sena added that Mayer will have to bring those who have made Google a superpower. Robert Scoble, popular tech blogger, agrees. Mayer is a bullish as CEO, even though she “confronts Yahoo with enormous challenges,” He claimed she was unusual in doing what any successful leader has to do: surround herself with other talented individuals.



This organization has been exploited and lost so much brilliance by its own management for so long,” he wrote. “That said, who would join a new leader is something I watch. I attended various gatherings and saw the people inspired by Marissa. Probably she will bring her own innovation team, which is quite fast becoming a world class. This will be Yahoo’s innovation jolt, which is certainly necessary.”

Being forefront with products, not necessary content

Yahoo can explore what users might expect by selecting the Mayer Executive Director, Ross Levenson. The background of Levenson is content, such as the Yahoo News and linked content offers (formerly the connected content, which was condemned as the poor “content farm”) like Yahoo’s Yahoo voices. Mayer, however, comes from the product development background. In her 13 years with Google, she worked to build multiple services from G mail to Google Maps.

Marc Andressen, Netscape co-fountain, currently CEO of Andressen, a major company, has said Yahoo is prepared to focus rather than to pull Web content such as Yahoo News on establishing and expanding Yahoo Mail and Yahoo Messenger (which is hugely popular but is largely populated by material gleaned from outside news services). “It is an enormous declaration on the Board’s side that the CNN content partner firm is the product they want.” I say that because if they want to be media-led, they’ve had a wonderful CEO (Levisohn). The output is a gigantic double. Andreessen said that he was not going towards the product, but “I didn’t think anybody could acquire them like Marissa.

Yahoo must figure out how these goods can be made according to Sena. Tools such as Yahoo Mail and the popular website have not become increasingly mobile. Other commentators, though, suggest that Mayer can expand on them.

Although I think that, Yahoo will eventually declare bankruptcy, I think it is very plausible. However, in the case of this, the above-mentioned chances would just become more important. Bankruptcy could make the transfer to virtual or online business techniques easier for Yahoo to instantly wind up its assets, thereby removing the unnecessary and unprofitable physical demands. Technology, consumer focus and general trends are crucial policies if Yahoo is to thrive on the market.