web analytics

Opportunities Yahoo missed


Yahoo was again in news as co-founder of Yahoo Jerry yang left the company and hiring of a new CEO. Internet filled up with lots of article related to the sale’s of assets of Yahoo and many other stuffs which naturally comes up when any company is battling downfall of the market capitalization. Yahoo survived last seventeen years even though they missed almost all the major opportunity which came in their way. We have given a thought on what are the opportunities which yahoo missed even they have an upper hand in almost every opportunity.

Search- Today yahoo search engine gets its result from Bing and it is a proof that Yahoo literally missed enormous fortune of search on Internet. Yahoo started as a directory or guide for searching on internet and they moved very fast towards web portal.  In reality yahoo never got that what search is going to be on internet and what kind of focus needed to be ahead of not only competition but of internet itself in the domain of search. Yahoo never missed an opportunity of buying or investing in Google because they could have never done justice with Google. Sometimes I really thank God, that Yahoo never touched Google. In-fact they helped Google by forging a partnership with Google who will provide their search result in 2000 and Google became the largest search engine. The biggest mistake which Yahoo did was they didn’t develop their business model based on search and internet technology. The diversification of Yahoo in to a web and portal hit them very hard in terms of the human resources which is required to keep as internet technology & software company ahead ahead of competitors.

Web 2.0- Yahoo should have come up with a product like Facebook or Myspace which never happened. They have every infrastructure which was required to make a social media platform successful but it never happened. The number of audience which Yahoo has was very high and they could have been natural target for a social media platform. Yahoo was the mother of Social Media with their Chats and Chat groups, Yahoo groups. If Yahoo would have introduced any social media network it would have really worked magic for them but they didn’t. It appears like a classic case of undermining the competition and the transformation of online space. Wikipedia, WordPress, Facebook, Myspace, blogs, YouTube  allowed the possibility of enormous number of original content on Internet and new generation moved towards these platforms. Somewhere web2.0 proved that Yahoo was wrong in leaving their focus from search and never coming up with their own social media platform. Web 2.0 was literally a revolution which transformed yahoo from software and technology company to mere web portal. Yahoo literally missed the sharing mission. 

  • Rise of social media platform like Facebook, Myspace, Tweeter, YouTube somehow transformed this iconic company in to a conventional form of player on Internet.
  • Yahoo literally lost the young audience to the rise of web2.0 . Major loss of mind-share.
  • The rise of blogging culture also has hit Yahoo hard.
  • One point that is amazing is that they never even tried for it.

Smartphone- The major driving force of the exponential rise in the usage of internet in the world is Smartphone and there is a consistent fight going between all the big player of internet technology that who will own the screen. The one decision of not developing the business model around search Internet created the hindrance which didn’t allow Yahoo to take part in the revolution caused by smartphone. Today yahoo is an application available on I-tune or Android market and there are many other application available on which is better or as good as Yahoo. So smartphone also leveled the consumption of content or the way a user will interact with Internet. Many will not agree with our opinion that smartphone was an opportunity for Yahoo but We think that the company which is controlling the operating System of smartphone will also control the flow of data. In reality Yahoo didn’t came up with a strategy to maintain their leadership in the business of web portal. 

Microsoft- The $47 billion from Microsoft was a real opportunity for Yahoo to exit which they arrogantly refused. There is no amazement as by doing this they just followed their historical chart of  not converting the opportunity even when you are the first mover. From search, web 2.0 and  Microsoft came in the way of Yahoo but it seems you are not destined to do it.

Acquisition- Yahoo did 64 acquisition from 1997 to 2011 but none of them turned in to something like  YouTube turned in to. Yahoo was not able to leverage any these acquisition in to an Internet phenomena or an asset which could have created an opportunity for yahoo.

Yahoo has lost a lots of opportunity in last thirteen or fourteen years and it will be interesting to see that an iconic internet company of nineties will ever be able to gain that status or will fade in the revolutionary technological development this decade.

If You Have liked this post please share it. Follow us on Facebook and Twitter.

TAGS: , ,

No Comments

Leave a Comment