Yahoo Steadily Losing Market Share
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https://online.wsj.com/article/SB10001424052702304441404577478691454611910.html
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https://blogs.wsj.com/digits/2012/10/22/yahoos-mayer-embraces-mobile-content-yahoo-answers/
Yahoo! Brand Management Unsuccessful
Introduction
In the second half of the 1990s, Yahoo grew from a tiny upstart surrounded by Silicon valley heavyweights into a major force in Internet media. The company expanded rapidly from its humble roots by making acquisitions, adding a vast assortment of content and services, expanding into foreign markets and attracting the biggest dot-com advertisers to pay premium prices for ads on Yahoo! Sites. By 2000, what began as a mere search engine had become an Internet giant, with a meteoric rise in stock value to match its new
economy renown. Soon after Yahoo hit its pick on the stock market, however the dot-com frenzy began to lose momentum and the economy began a slide into recession. As dot-coms either went bankrupt or were forced to cut back on spending, Yahoo’s advertiser base began to shrink.
Economic Troubles:
By mid 2000, the economy had begun to falter and even an internet blue chip like Yahoo was not immune to the effects of the dot com crash. Analysts who considered Yahoo’s stock over valued saw their suspicions confirmed as the price fell 80 percent during the year. Because Yahoo derived over 80 percent of its revenue from online advertising sales, and the bulk of its advertisers were internet companies, their collective struggle’s would affect Yahoo’s revenues.
Building Relationships with Advertisers:
The web had the potential for reinventing and reinvigorating advertising. With its unique ability for measurement – tracking who clicked on an ad and how they interacted with it – the internet promised to solve the classic problem stated by department-store pioneer John Wanamaker. “ Half of the money I spend on advertising is wasted; the trouble is, I don’t know which half.
A problem for yahoo was that it had garnered a reputation for neglecting the needs of corporate marketers.
Changing Media landscape:
Yahoo was able to take the advantage of this shift in media consumption and use it on their advantage. The company had over 181 million active registered users, which meant that Yahoo could tell advertisers that it knew the habits or more users than any other portal – or traditional media company. In contrast, Google never trained “trained” its users to register and it wasn’t until the late 2004 that the company started asking them to begin signing up for the services. This allowed yahoo a tremendous lead in attracting brand advertising. According to Morgan Stanley Internet Analyst Mary Meker, “If you are new to online advertising, yahoo is your first call because they do everything.”
Risk factors for Yahoo!:
As Yahoo moved into the twenty first century, it faced significant risks. Many analysts believed there were three primary threats to the company.
1. Competition from the other Internet related companies.
2. Potential exposure to concerns over aggressive industry online advertising practices.
3. Weak growth in international markets.
Questions that should shape your understanding and writeup
1. Describe the sources of equity for the Yahoo! brand. Did these sources change during Yahoo!’s history? If so, How?
2. How did yahoo’s marketing program contribute to the company’s success? What changes, if any, would recommend for the future?
3. Evaluate yahoo’s strategy of selling services. What impact, if any, will it have on consumer’s perceptions of the brand? How can Yahoo get more people to pay for more of its services?
4. Should Yahoo work more on growing its international presence, or should it focus on strengthening its domestic position?
5. What do you think is the biggest risk to yahoo at the time of the case? What should the company do about it?
Assignment
1. Conduct your research by reading numerous articles on the topic but also on articles that assist you in understanding each brand and why each had been effective.
2. Insure you are able to answer the questions in your coverage of the topic. These are important items that you should guide your analysis and understanding.
3. Identify the problem statement. The case analysis should begin with a very brief description of the background and key players in the scenario. This description provides a context for the problem. Insure you state the problem at hand as directly and simply as possible.
4. Do a thorough analysis and evaluation. Identification of ALL important issues which include but are not limited to the following: segmentation, target market, branding or brand equity, product or service, promotion, pricing, and or place. PLEASE NOTE, IT WILL NOT BE ALL OF THESE. You should use information presented in the case, the text, concepts, theories, and/or past empirical research reported in the text to understand why the problems and issues have developed and why they are important. The analysis of each issue should be developed to provide the necessary background to lead to defining one or more reasonable alternative solutions to the problem.
5. Identify recommendations. Recommended actions will evolve out of your analysis of the issues. Decide what should be done (or what should have been done). Be very clear on WHY you have chosen this action. Justify your decision with facts from the case and concepts FROM TEXT. Use sound analyses and reasoning.
6. Lastly, write your executive summary. An executive summary is writing the key details in a narrative that is WRITTEN LAST, BUT APPEARS FIRST in any document. This should define the problem, identify and expound on the key facts and analysis, and finally provide an outline with details of your recommendations.
Case analysis must be typewritten and please use APA format. You may include exhibits or appendices in your write-ups. Exhibits and appendices do not count toward the page limit. The format for the written case analyses is as follows:
1. Executive summary (20%). This should define the problem, identify and expound on the key facts and analysis, and finally provide an outline with details of your recommendations.
2. Problem Statement (10%). The case analysis should begin with a very brief description of the background and key players in the scenario. This description provides a context for the problem. Insure you state the problem at hand.
3. Analysis and evaluation (50%). Identification of ALL important issues, use information presented in the case and concepts, theories, and/or past empirical research reported in the text to understand why the problems and issues have developed and why they are important. The analysis of each issue should be developed to provide the necessary background to lead to defining one or more reasonable alternative solutions to the problem.
4. Recommendations (20%). Recommended actions will evolve out of your analysis of the issues. Decide what should be done (or what should have been done). Be very clear on WHY you have chosen this action. Justify your decision with facts from the case and concepts FROM TEXT. Use sound analyses and reasoning
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