Business Analysis to Yahoo
- 2. ABOUT
• YAHOO is an American multinational Internet
corporation headquartered in Sunnyvale , California.
• It was founded in January 1994 by Jerry
yang and David Filo, who were Electrical Engineering
graduate students when they created a website named
"Jerry and David's Guide to the World Wide Web".
- 3. • The Guide was a directory
of other websites, organized
in a hierarchy, as opposed to
a searchable index of pages
• In April 1994, “Jerry and David's
Guide to the World Wide Web”
was renamed "Yahoo!“.
• The yahoo.com domain was
created on January 18, 1995.
- 4. GROWTH
• Yahoo grew rapidly throughout the 1990s.
• Yahoo added a web portal. By 1998, Yahoo! was the
most popular starting point for web users.
• In 2000, Yahoo began using Google for search.
• In response to Google's Gmail, Yahoo began to offer
unlimited email storage in 2007.
• In 2011, Yahoo had a market
capitalization of US$22.24 billion.
- 5. • On May 20,2013 the company announced the
acquisition of Tumblr officially.
• On August 2, 2013, Yahoo Inc. announced the
acquisition of social Web browser concern RockMelt
• during July 2013 more people in the U.S. visited
Yahoo Web sites during the month in comparison to
Google Web sites
• On March 12, 2014, Yahoo officially
announced its partnership with Yelp Inc
- 6. Acquisitions
• Yahoo's first acquisition was
the purchase of Net Controls, a
web search engine company,
in September 1997 for
US$1.4 million.
• The derived yahoo product
from this acquisition was
Yahoo search.
- 7. • Most of the companies
acquired by Yahoo are
based in the United States;
78 of the companies are
from the United States,
and 15 are based of other
foreign country.
• As of July 2014, Yahoo
has acquired 106 companies
and some of them resulted into yahoo products.
Yahoo mail from xoobit(webmail application) .
- 8. Yahoo games
Yahoo search
Yahoo sports
Yahoo video
Yahoo music
Classic games
whereonearth
Rivals.com
jumpcut
webjay
- 9. • The latest company that yahoo acquired is FLURRY
• It was acquired on July 21, 2014
• In February 2008, Microsoft Corporation made an
unsolicited bid to acquire Yahoo for US$44.6 billion.
Yahoo formally rejected the bid, claiming that it
"substantially undervalues" the company and was not
in the interest of its shareholders
- 10. HOW YAHOO MAKES MONEY
• Yahoo! offers services to other
the Web site companies.
>pay Yahoo!< to post adds<
• When you click on an add,
somehow the company measures this, the company
pays Yahoo! money.
• More money made on the product
is relatively related to the popularity
of the host of the Ads.
- 11. REVENUE MODEL
• About 88% of revenues came from marketing
services. The largest segment of it was from search
advertising, where advertisers bid for search terms to
display their ads on the search results; on average
Yahoo makes 2.5 cents to 3 cents from each search.
• Other ways of income are-
• yahoo auction which is currently offering services to
only three countries-hongkong , Japan ,Taiwan .Yahoo
set up this service to compete with eBay.
• Yahoo shopping
- 12. PRODUCTS AND SERVICES
• communication
Yahoo mail
Yahoo messenger
• Commerce
Yahoo shopping
Yahoo travel
• Small business
Yahoo web hosting
• Advertising
Panama
- 13. PARTNERSHIPS
• Yahoo developed partnerships with broadband
providers such as AT&T Inc., Verizon
Communications, Rogers
Communications and British Telecom, offering a
range of free and premium Yahoo content and
services to subscribers.
• Other some of the partners of yahoo are-
• Yelp
• AVG
• CMU(Carnegie Mellon University)-cmu partners with
yahoo $10 million machine learning initiative.
- 14. FINANCIAL DATA
Financial data(in US$ millions)
Year 2003 2004 2005 2006 2007 2008 2009 2010 2011
SALES 1,625 3,574 5,258 6,426 6,969 7,208 6,460 6,324 4,984
EBITDA 453 1,000 1,505 1,066
NET
238 840 1,896 751 660 424 597 1,231
RESULT
STAFF 5,500 7,600 9,800 11,400 13,900 13,200 14,100
In 2013 yahoo announces its earnings as:
$1.13 billion revenue and $137 million income
- 15. FUTURE STRATEGY
Marissa Mayer current CEO of yahoo outlined Yahoo's guiding
strategy:
• The goal is to become something users
touch every day.
• Yahoo will focus more. To paraphrase: "Do more of what we're
good at and less of what we're not."
• Yahoo will be partner friendly.
• Yahoo will be strong in mobile by 2015.
- 16. • Projects will only be green-lit if they can scale to 100
million users or $100 million in revenue.
• Yahoo will move faster, giving employees more deadlines,
ownership, resources, and tools.
• Mayer said Yahoo will nurture talent through "the Four Cs."
They are:
• Culture
• Company goals
• Calibration
• Compensation.
- 17. SWOT ANALYSIS
• Strengths
• Social media interconnectivity
• Products and services
• Portal website
• Weakness
• Weak search technology
• Most of the services provided by yahoo are
unknown in the internet space
- 18. • Opportunities
• Increment in mobile users
• Threats
• Google
• Increment in competitors