Competitive Advantage Case Study

Yahoo!—Eyeing the Next Big Thing on Internet

OR

Abstract:

After the dismal financial performance in the early 2000s, Yahoo! (Yahoo) is on its way back to profitability in 2003. Under the guidance of Terry Semel (Semel) CEO Yahoo, the portal is on the way to becoming the largest media company in the world. With the spread of broadband, brand advertising is steadily becoming the largest source of revenue for online companies. As advertisers flock to Yahoo, Semel has a tough task of convincing traditional media, which is responsible for most of its content, to continue their relationship with Yahoo

Semel believes that ‘Social media” where content is generated by users themselves, through their photo and video blogs, podcasts and hyperlinks, is the “next big thing” on the internet both for the user and the advertiser. As Semel makes investments to make social media a reality, he wonders if his bet will pay off. With so much content being generated in Yahoo, will Yahoo be able to maintain the fine balance between guiding the user to the most relevant content and its own content?

Pedagogical Objectives:

• To discuss Yahoo’s growth
• To discuss the competition and changing markets
• To discuss Yahoo’s new growth Strategy in changing environments

Keywords : Yahoo; Terry Semel; Core Competency & Competitive Advantage Case Study; Online brand advertising; Social media; Broadband; Search; Yahoo News; Yahoo Users; Flickr; Konfabulator; Strategy; Yahoo TV; Business Model; Hyperlinks; Blogs