New balloon for Yahoo
Then and Now In 1994 Hallo was created by Jerry Yang and David Fill. They started off this new venture by creating an internet browser that provided users with a platform to browse and view the internet.
Yahoo! Began generating revenue through online advertisements, ad placement fees, promotions and sponsorships. In 1995 Yahoo! Was incorporated and through its initial PIP in April of 1996 were able to raise $38. 8 million through initial share sales. In the beginning phase of the company, Yahoo! United to see substantial growth in these revenues until the early sass’s. As many other companies began to emerge, Yahoo! Started to lose some of the market share they had for so long dominated. In 2006, they recognized a significant decrease In net and within one year they experienced a decrease of almost 60% In net Income with $751 million reported at year end of 2006.
Hallo’s homepage had a plethora of services that it offered to users such as e-mail, music, mobile, small business services, health, finance, games, movies, personals, etc.
With no singular goal in mind but to offer as many services in one stop, they began to lose more and more market share over time. They acquired other companies with hopes of integrating them and remaining competitive but were unsuccessful. In the meantime, Google and Backbone were flourishing in the emerging technological market. In more recent years, Yahoo! Has gone through five Coo’s, with the latest being fired after falsifying his educational achievements and claiming to have a computer science degree that he never received.
Fast forward to today and the newly appointed CEO, Marimbas Mayer, has a new balloon for Yahoo! With her background and experience with Yahoo! ‘s mall competition, Google. She brings to the table innovative desires for the future of the company. In 2010 Hallo entered into an agreement with Microsoft to release their search engine technology to Microsoft in order to combine it with their technology and lease it from Microsoft. The agreement would alleviate some of the financial burden among Yahoo! And allow it to focus its capital elsewhere.
Since this agreement has taken place, the profits of the company have begun to decrease once again and this has been one of the issues Marimbas Mayer, CEO, wants to address and correct during her reign.
To date, Microsoft has not agreed to allow Yahoo! Out of the deal. What are the company’s problems today? The company’s problems today are similar to what their problems were back almost a decade ago. Yahoo! Offers way too many services and Isn’t In line with one specific path of where the company needs to go.
The company has gone through five Coo’s In scent years and it needs to have some stability as well in its leadership and what the future consumers will want and bring them to reality. What they offer is already available through other sites so they need to find a way to remain competitive.
What would you do to solve them? Yahoo! Is on the right track with appointing Marimbas Mayer as CEO. She comes from a background of innovation and knows the competition first hand. Yahoo! Deeds to reassess the culture of the company and restructure and refocus on the needs of the true in order to be successful. In order to solve the problems of Yahoo! Today, I would begin to acquire technological companies that are on the verge of new developments in order to create something that is not offered in the market already through social media. As the ever – evolving days of technology continue to advance, Yahoo must be innovative and streamline their services so that they can be known for something instead of a place for everything where one can be lost amongst the competition.