Yahoo is a global internet brand that was incorporated in 1995 and founded in 1994 by former Stanford PHD students. The company operates several online properties and services such as Yahoo. Advertisers and publishers access yahoo's a broad range of marketing solutions and tools that assist businesses to reach users who visit yahoo sites. This paper seeks to analyze the financial times article by Hannah Kuchler and the USA TODAY article by Alister Barr (2014) and how they show the structure and strategy problems facing Yahoo.
According to Barr (2014) article, Yahoo has been facing a structural problem in carrying out an effective relationship between its employees and other levels of management. Barr (2014) show the extent of the problem such that the new Chief executive and to make a decision to ban employees working from home. This was to fix a problem where Yahoo has been grappling with of low productivity among employees. One of the main problems that Yahoo has been facing has been the failure of an effective relationship between its levels of planning and strategy. Barr (2014) says that some of Yahoo's customers prefer to bid ads online through real-time bidding platforms, which are able to automate the process. Yahoo has been missing on such revenue opportunities because it is still using the e traditional methods of focusing on selling premium ad inventory.
[...] Additionally, Yahoo has missed other opportunities as shown by Kuchler(2014) where there has been a lot of missed targets in earnings. As Brian Wieser of pivotal Research notes, that Alibaba's gross profit of $ 1.3 bn was worse than expected (Kuchler, 2014). Yahoo's external forces have been mainly new upcoming internet giants such as Google and Facebook. They managed to diversify their products coupled with innovations. This has led to Yahoo failing to retain its customers hence the fall of market share (Oreskovic, 2014). Some of threats facing Yahoo have been brought about by failure of Yahoo to implement change. [...]
[...] This shows that Yahoo has potential and the opportunity. In spite of Marisa's forecast, the company's investors were unimpressed, sending the shares downwards as much as 6 percent (Kuchler, 2014). In addition, Yahoo reported a 6 percent drop in GAAP revenue in the period of last year and an additional 2 percent fall in traffic (Kuchler, 2014). Yahoo's structural problems and lack of a coherent strategy has made Yahoo to miss on many opportunities in the past. For instance, Yahoo failed to acquire Facebook in its early stages when it was a startup. [...]
[...] This issue made Yahoo's share of U.S digital ad revenue fall from to last year (Barr, 2013). In the case of Yahoo, it is crucial for the firm's executive to identify weaknesses such as lack of adapting an online ad bidding platform preferred by many advertising agencies, but instead sticking to traditional methods of maintaining large sales people (Waddell, Jones, and George, 2013) . This has made them lose business since many advertisers shun Yahoo to other competitors with online bidding platforms. [...]
[...] This is because Yahoo has not been developing its own applications that are installed on smart phones and tablets. This is a strategy problem of not correctly planning for the future. Another problem has been the issue of making operational decisions as Barr (2014) puts it's that Yahoo has very many employees and managers working in sales and it would be highly disruptive for the company to switch to an automated approach. This indicates a structural problem in its levels of planning about changes in operations of the company. [...]
[...] Yahoo also needs to work on integration of it cross functions and operational boundaries. It would solve the problem of organization structure in alignment with the overall goal of achieving new target revenues this year. IMPLICATIONS FOR YAHOO AND ITS STRATEGY Yahoo's strategy in terms of managing external environment, Industry competitors aligning the organizational structure to their goals has its implications. One of the implications is that Yahoo will be able to stabilize itself given the huge fall in its ad revenue market share. [...]
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