Yahoo Case Study 12-1

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Yahoo Strategic Plan 2SummaryYahoo can be likened to the popular yellow pages; this is because it provides a valuableand fast source of information to the entire world. It is used by more than three million peopleand is considered to be one of the leading internet businesses. Even though, Yahoo gained itsreputation and is one of the biggest search engines in the world, it has to deal with a lot of competition emanating from AOL and Google. These companies exert a lot of effort to developtheir websites search engine features everyday. Therefore, this has lead to a major decline in usertraffic on Yahoo’s sites and also affects the company’s revenues. On the other hand, Yahoomanages its services and products as a long-term focus since it believes that this is the bestmethod of running business. Nevertheless, the company believes that in order to compete withGoogle and AOL, it must continue to respond to the changing market and remain as a familiar,trustworthy media source. Summarily, the company’s corporate information and an overview of its operations, mandate in terms of vision, mission, values and stakeholders are evaluated. Thefundamental components of the company's internal environment including employee-employeeand employee-management relationships, work structures, organizational behaviors, ethics,financial position, products and employee incentives are discussed. External environmentalfactors which characterize the company's operations like competition, growth strategies,competitive strategies and market positions are also deduced. Finally, the various strategies usedby yahoo in terms economic models, differentiation and control are discussed with economicmodel chosen as the best strategy to adopt. The paper does not include yahoo strategic optionsand recommendations.

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