Yahoo

Questions?

Ethical Standards of Business Conduct

• Long term success of any strategy, requires enforcement of ethical guideline
• Yahoo is committed to their “Code of Ethics” & understands importance of it
• CEO to lower level employees, contractors, suppliers, stockholders, users & partners
• Company wide training mandatory
• Violating Code of Conduct results in warnings, probation or immediate termination
• Yahoo extends Code of Conduct expectations to their users
• Be Courteous
• Good Citizens
• Post or Upload appropriate content consistent with Yahoo’s terms of service
• Violating Code of Conduct results in warning or immediate termination of Yahoo User ID and all other Yahoo services

SWOT Analysis

Strategies under Consideration

Purpose

• Match Strengths & Opportunities, Strengths & Threats, Weaknesses & Opportunities, and Weaknesses and Threats
• Develop and execute strategies implemented

SWOT analysis summary

• Use strategies to excel strength & opportunities
• Use strategies to cope with weaknesses & threats

Strategies

• Develop new phone applications for the high visited sites
• Develop a new search engine algorithm
• Develop a site map to introduce Yahoo services and web sites
• Develop new security measures for mobile app downloads to secure users against fraud and identity theft
• New advertising campaign to target new and returning customers and to expand target market using brand recognition
• Partner with Samsung to advertise Yahoo mobile apps
• Demonstrate value through online services to gain market share and thus attract advertisers

Internal Factor Matrix

Product development

• Increase market share & revenue by creating new mobile applications and search algorithm

Retrenchment

• Eliminate unpopular, minimally used Apps. Yahoo has over 75 apps, not all are popular and are not helping Yahoo to grow revenue

Related diversification strategies

• Align with well-known mobile provider to share knowledge, resources, and innovations. Possibly investing ownership into a mobile company.

Market Penetration

• Develop a marketing reorganization plan lead by a top marketing executive
• Link company’s strategies to revenue growth and increased market share

External Factor Evaluation Recap

External Factor Matrix

External Factor Evaluation Recap (cont.)

Yahoos primary target

• Web surfers
• Mobile app users

Primary opportunities:

• Mobile Applications
• New followers worldwide
• Sports fans Worldwide

Primary threats:

• Losing advertisers and investors
• Advertising generates revenue

Other search engine options

• Google
• Bing (MSN)
• Ask

Internal Factor Evaluation Recap

Introduction and History

Selected Strategies

Yahoo Homepage

Introduction/History

• The beginning
• 1994 – Birth of yahoo
• Market value
• Yahoo’s market value plunged From $100 billion in 2001 to $12 billion in 2013
• Management
• In 2012 Yahoo higher Marissa Mayer, a Vice President at Google
• Mayer replaces Chief Financial Officer and advertising executive

Yahoo’s Primary Strength

• Most popular site visited – weighted 0.11
• Brand recognition with – weighted 0.07
• Growing active mobile users – weighted 0.05

Yahoo’s Primary Weakness

• Total sales increased by only 0.047% – weighted 0.011
• Marketing and lack of innovation – weighted 0.08
• Management – weighted 0.07
• Lacking behind Bing and Google for worldwide search traffic – weighted 0.07

BCKSN Consulting Group

Karen Bishop

Monica Carper

Myron Kirchner

Omarys Soto

Saied Navab

Competitive Profile Matrix

Mission Statement 1

Product Development

Optimal opportunity exist

• 1.2 billion smart phones entering into the market & tablet use increasing

apx 50% by 2015. AS of June 2013, there were 2.1 billion mobile Web users

• Busy, hectic society has led to a need and/or desire for immediate information

Expansion of Popular Services on Website to Mobile

• Primary focus will be on creating News & Sports Apps for real time viewing

Develop new search engine algorithm

• Will provide more accurate search data using less words
• Currently powered by Bing
• Loosing market share to Google - provides a more accurate search

Yahoo vs. Google and MSN

• Yahoo’s weighted score is 2.25
• Google’s weighted score is 3.76
• MSN’s weighted score is 2.69

Yahoo’s Strength and Weaknesses vs. Google and MSN

• Innovation – weighted 0.54 vs. Google at 0.72 and MSN at 0.54
• Advertising – weighted 0.24 vs. Google at 0.48 and MSN at 0.24
• Product offering – weighted 0.33 vs. Google at 0.44 and MSN at 0.22

• Yahoo! is focused on making the world's daily habits inspiring and entertaining. By creating highly personalized experiences for our users, we keep people connected to what matters most to them, across devices and around the world. In turn, we create value for advertisers by connecting them with the audiences that build their businesses (Yahoo, overview, 2013).

Competitive Analysis

Objectives

Market Share

• Competitive review

Boston Consulting Group (BCG) Analysis

• Strategy determination

Product Positioning

• Niche markets

Mission Statement 2

Yahoo! Inc., together with its consolidated subsidiaries (“Yahoo!,” the “Company,” “we,” or “us”), is a global technology company focused on making the world’s daily habits inspiring and entertaining. We provide a variety of products and services, many of them personalized, including search, content, and communications tools—all daily habits for hundreds of millions of users, on the Web and on mobile devices. We create value for advertisers and their brands by connecting them with targeted audiences of users through their daily habits. Advertisers can build their businesses through advertising to these targeted audiences on our online properties and services (“Yahoo! Properties”), or through our distribution network of third party entities (“Affiliates”) who integrate our advertising offerings into their Websites or other offerings (those Websites and other offerings, “Affiliate sites”).

• Introduction/History
• Mission Statement - Recap
• External Factor Evaluation (EFE) - Recap
• Competitive Profile Matrix (CPM) - Recap
• Internal Factor Evaluation (IFE) - Recap
• Strategic implications
• Competitive Analysis
• Market Share
• Boston Consulting Group (BCG)
• Product Positioning
• SWOT Analysis
• Strategies Under Consideration
• Strategies Selected
• Evaluated Methods of Implementation
• Goals of Implementations /Financial Analysis
• Ethical Standards of Business Conduct

Boston Consulting Group (BCG) Analysis

Competitive Analysis (cont.)

Mission Statement (cont.)

• Primary differences
• Customers
• Products or services
• Markets
• Technology
• Concern for survival, growth and profitability

Market Share

• Determines how much of the market a company owns
• Offers qualitative results
• New Innovations

Mobile applications

Opportunities

• Yahoo has 12% of market share
• Plenty of room for growth
• AOL and Ask are losing market share

Threats

• Google and MSN continue to gain market share

Selected Strategies (cont.)

Competitive Analysis (cont.)

Goals of Implementation (cont.)

Projected Market Share 2017

Goals of Implementation (cont.)

Current Market Share

Market Penetration

Advertise New Products

• Advertise on news forums & news magazines, ex: Business Week
• Sports Magazines, ex: Sports Illustrated
• Pop-up advertising on merchants of sporting goods websites:

ex: Sports Authority and Dicks Sporting Goods

• Boost popularity of the sports app by timing launch to coincide with a live event such as the Super Bowl
• Have a monthly drawing for new app users, ex: draw name every month for 1st three months to win a new smart phone or tablet
• Create chatter through tweets
• More people talk about Yahoo’s site & Apps, the more awareness it will bring to the products
• More tweets = better chance of products appearing on review blogs & technical websites

Competitive Analysis(cont.)

Product Positioning Map

• Boston Consulting Group (BCG) Analysis
• Geographic segments of Yahoo
• United States
• EMEA (Europe, Middle East, and Africa)
• Asia Pacific
• Offers quantitative & qualitative results
• Opportunities and Threats
• United States with the largest market share at 74% and revenue at 69%, and the lowest growth rate at 5% - in Stars
• EMEA with the highest growth rate at 25%, lowest market share at 3% and revenue at 9% - in Question Marks
• Asia Pacific with lowest growth rate at 0%, market share at 23% and revenue at 21% - in Question Marks
• Evaluates strategic future of company

Goals of Implementation Financial Analysis

Selected Strategies (cont.)

Goals of Implementation (cont.) Projected Sales & Net Income by 2017

What is expected within five years

• Market share
• Sales & Net Income

Projected Market Share by 2017

• Gain 1.5% market share per year
• Growth from 12% current to 19.5%

Projected Sales & Net Income by 2017

• Gain $6.3 billion in sales in 2017
• Reach $5.1 billion in net income

Projected Ratios by 2017

• Maintain a steady current ration, Debt-to-Equity ratio, and return on investment

Reason for High Expectations

• Increase customer awareness of products and services through adverting and promotions
• Increase investors for advertise placement through growth rate and market share

Goals of Implementation (cont.)

Projected Ratios by 2017

Competitive Analysis(cont.)

Product Positioning Map

Market Penetration

Will use statistical data to market mobile apps towards target groups

of Smart Phone users via e-mail

• Millennial, Generation Y (ages 24-32) = 72%
• Generation Z (ages 18-23) = 64%
• Generation X (ages 33-46) = 61%
• Younger Boomers (47-56) = 39%
• Older Boomers (57-67) = 28%
• Golden Generation (68-88) = 16%
• Would not be an optimal target market for advertising

Current Ratio

• Available liquid assets to cover each $1.00 of current liability
• Higher current ratio means Yahoo has a better liquidity position

Debt to equity ratio

• presents the company’s financial leverage who is responsible for funding the company’s growth, creditors versus owners

Return-on-investment capital (ROIC)

• measures a company's efficiency at allocating its capital

Selected Strategies (cont.)

Evaluation Methods of Implementation

Competitive Analysis (cont.)

Competitive Analysis Summary

Will Track internet statistics to determine if the marketing and/or apps are attracting more users to the website

• Analytical code logs into user interface, enables Yahoo to monitor the visits
• Data will show if users are staying on the site longer , are they clicking on advertisements?
• Data will capture interest in mobile applications by the “clicks” from the users
• Will Use Surveys to gather feedback:
• On Yahoo’s website
• Sent to Yahoo e-mail account holders
• Pop-up surveys on the new apps, to gather insight on likes and dislikes of users
• Entice Participation, offer 10% discount coupon

Survey example:

• If they have heard about the product
• How did they hear about the product
• Are they likely to use the product

Competitive Analysis summary

• Focus on growing market share
• Target MSN as primary competition
• Remain in existing niche markets

Market share

• Need to find ways to grow market share
• Overcome MSN as the closest competitor

Boston Consulting Group (BCG)

• Must target MSN’s market share
• Need to increase revenue in a high growth rate segment (EMEA)
• Need to increase market share to improve growth rate and revenue for the U.S. segment
• Need to increase growth rate for Asia Pacific segment

Product Positioning Maps

• Should remain in the existing niche market
• Need to focus on customer awareness of existing and new products
• Needs to streamline services and user friendly

Market Penetration

Advertise Existing Products

• Advertise to Yahoo’s e-mail users online travel service during peek travel times
• Advertise online car buying service at end of each quarter for one year
• E-mail Yahoo’s e-mail users promo codes during holiday season to use on Yahoo’s online shopping tool

Product Positioning Maps

• Evaluates potential niche markets
• Offers qualitative results

Opportunities

• Content quality
• Effectiveness of search engine

Niche Markets

• Other competitors do not offer as many services
• Quality vs. Quantity