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Yahoo Case Study 12

Case Details:


Case Code:BSTR258For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges


Corporate Restructuring
Case Length:24 Pages
Pub Date:2007
Teaching Note:Not Available
Industry:Internet and E-Commerce
Countries :US


The case examines Yahoo's organizational restructuring plans and the launch of its new search engine Panama. Though Yahoo was one of the few companies that survived the dotcom burst, it could not sustain its lead in the rapidly changing business environment and lost the first mover advantage it had in online advertising business. Yahoo acquired several companies in search technology and search related advertising business but failed to take advantage of those acquisitions and fell behind Google, which emerged as a major player in the Internet search market. Yahoo tried to cater to a wide segment of audience and this effort resulted in a highly cluttered home page.

By late 2006, Yahoo faced several problems which were widely reported in the media. In order to address these problems, Yahoo announced reorganization in December 2006 and within a few months it released 'Panama.'


» Understand the problems in the business model of Yahoo!

» Examine the strategies adopted by Yahoo! to revive its business operations

» Critically analyze the reorganization plan of Yahoo!



Yahoo!, Organizational Restructuring, Reorganization, Peanut Butter Manifesto, Panama, Online Advertising Market in US, Online Advertising Techniques, Internet Search Market, Google, Growth Strategy, Innovation, Click-through Rates, Unique Visitors, Banner Advertisements, Promotional Sponsorships, Overture,, Matrix Organization

Reorganizing Yahoo!- Next Page>>

Yahoo – Case StudyStrategic ManagementBy: Abdullah Ensour/ Orouba Al-AjarmehSubmitted to: Dr. Is’haq Al-Sha’aarA.Case AbstractYahoo! Inc., one of the largest internet companies in the world, is present in 60 countries andavailable in 45 languages.Yahoo oFers a diversi±ed range of internet services and content, from e-mail and search tomedia streaming, downloads and adverTsing. It is a very strong brand, with more than 700million people generaTng tra²c on Yahoo properTes monthly.Yahoo’s core competencies: search capabiliTes and digital (display and search) adverTsing.Yahoo obtains revenues from markeTng services sold to adverTsers. AddiTonally, Yahoo chargesfees for a range of premium services. ³he external environment is highly compeTTve (Google and ´acebook being the leaders), with alow barriers to entry market and high threat of subsTtutes. Consumers bargaining power is high,many consumer changing habits and spending behavior. Yahoo faces a new era – of social networking (Facebook exceeded 1 billion users in 2012) andmobile internet, consumers spending valuable Tme on the former and accessing internet forany purpose (check e-mail, communicate, obtain informaTon, buy products and services,leisure) through smart phones and tablets.In the past years, Yahoo lost its compeTTve advantage - digital adverTsing franchising – drivingworsening ±nancial posiTon. New opportuniTes exist, threats are obvious (Google and ´acebook conTnuously eat-up Yahoo’smarket share), strengths can be capitalized, weakness must be improved and all in all Yahooneeds to rethink its strategic advantages and make the best course of acTon for futurecompeTTveness posiTon improvement.