Growth Strategies Case Study

Yahoo in 2006

OR

Abstract:
Yahoo Inc. recorded revenues of $ 5.2 billion in 2005. Started as a web directory in 1994, during the dotcom boom, Yahoo rapidly established itself as a leading web portal. But with the dotcom bust in 2000, Yahoo’s revenues saw a steep downturn. The company reported a loss of $ 9.2 million in 2001. The leadership change in 2001 was a rescue effort. Under Terry Semel, Yahoo staged a comeback by undertaking various strategic initiatives. By 2006, Yahoo emerged as an integrated online media company. But some analysts opined that Yahoo’s diversification strategy made it lose focus and rendered it without any competitive advantage in any particular area.

The case describes the growth strategies followed by Yahoo. It highlights the competitive advantage Yahoo acquired in various industries and the case ends with a debate whether Yahoo’s jack of all trades strategy make it master of none?

Pedagogical Objectives:

• To understand the structure of search engine industry
• To discuss the growth strategies followed by Yahoo in a competitive market
• To analyse the unique model of Yahoo and its pros and cons
• To debate on the success of such a model for Yahoo and whether it’s a competitive advantage for Yahoo.

Keywords : Innovation; Peripheral Vision; Growth Strategies Case Study; Diversification in related Industries; Challenging the Leader; Growth Strategies of an Innovator; Competitive Advantage; Search Engine Industry

Contents : 
Introduction
Background Note
The Dot.Com Boom to Burst
Reviving Yahoo
Burgeoning Media player
Yahoo: Jack of All Master of None?