Yahoo Case

1377 words 6 pages
Tomasz Olfans
Professor Rothman
Strategic Management
03/24/2015

Yahoo!
Executive Summary:
Yahoo! Inc., is among the biggest web companies around the globe and exists in over 50 countries across the world. Furthermore it is available in over 40 languages. The external environment, which is competitors like Google and Facebook, is extremely aggressive. The internal situation, which is financials and management of the company, is extremely weak. Furthermore, the company is in decline when it comes specifically to their products distribution (not including Alibaba association with the company). There are two big issues within the firm. Firstly, Yahoo’s main source of revenue is desktop advertising. That is why the company is in big troubles
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That is the main revenue source and primary business that brings money to Yahoo (10K). As of this situation, Yahoo’s revenue hurts because basing the business nowadays on desktop advertisement is old and brings little stream of money into the company.
2. Management within the Yahoo, Marissa Mayer, is struggling with doing what is best for the company. According to Carlson in Marissa Mayer and the Fight to Save Yahoo, “She hasn’t scrapped products, hasn’t controlled costs, hasn’t improved morale long-term and hasn’t done drastic cuts that are needed long-term.” The issue with the management struggling with core decisions, like cutting costs, affects the company in a negative way. Furthermore, it makes the company spend money on departments, employees, or operations that can definitely be avoided. Therefore, the expenses are way too high in Yahoo.

Solutions:
1. Yahoo’s answer to declining revenue from depending too much on desktop advertising is focusing more on mobile advertising. According to ibtimes, around 180 people access mobile devices every minute. Therefore, Yahoo should center its effort to develop best mobile advertising ever.
2. The best solution for this issue is to hire consultant that would deal with problems that Marissa Mayer can’t handle.

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