Past And Potential Future Of Yahoo Essay

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Business Studies Yahoo!

Yahoo! is a U.S. based internet firm, known primarily for its' web search engine and related services such as Yahoo Groups, Yahoo Mail and the online publication of news, though Yahoo News. According to Alexa, Yahoo is the forth most popular web site in the world, behind Google, Facebook and YouTube, with 32.7% of its' traffic coming from the U.S. (Alexa, 2014). The firm is moving forward with the ongoing use of digital magazines to gain readers, and its' main source of income is the advertising revenues (Goel, 2014). The question that the company faces from many of the critics is whether or not there is a bright future, when the firm only has a 3.1% share of the digital marketing revenues, compared to Google's 33.24% and Facebook's 5.4% (Efrati, 2013).

When looking at Yahoo, the firm has a mixed history with achievements as well as challenges. The company was started in 1994 by David Filo and Jerry Yang, electrical engineering doctoral students, as "Jerry and David's Guide to the World Wide Web," becoming Yahoo later in the same year (WSJ, 2014). The guide was organized as a directory in a hierarchical format, differentiated from other guides of the times which were searchable indexes (Yahoo, 2014; Angel, 2002). The...

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The initial investment from the venture capital form was almost $2 million (Yahoo, 2014). The second round investors included Reuters, and in 1996 the firm made its initial public offering (IPO) (Yahoo, 2014). In 1996 the firm started to expand the services significantly, launching personalization on Yahoo.com, adopting to the users interests, gaining a first mover advantage (WSJ, 2014). By the end of 1999 the total market value of the firm exceeds $100 million (WSJ, 2014).
It may be argued that in 200 the firm made a mistake which cost them dearly, instead of developing their own search algorithms, they licensed Google's for a period of 4 years; this agreement increased exposure for Google, and many web users started to go straight to Google (WSJ, 2014). By 2001, this mistake, along with the dot com bubble saw the firms' market value plummet to $10 million (WSJ, 2014).…

Sources Used in Documents:

References

Alexa, (2014), Yahoo! accessed at http://www.alexa.com/siteinfo/yahoo.com on 23rd June 2014

Angel, K, (2002), Inside Yahoo: Reinvention and the Road Ahead, John Wiley & Sons

Efrati, A, (2013, June, 13), In Online Ads, There's Google -- and Then Everybody Else, Wall Street Journal, accessed at http://blogs.wsj.com/digits/2013/06/13/in-online-ads-theres-google-and-then-everybody-else / on 22nd June 2014

Geol, V, (2014, June 21), Yahoo Wants You to Linger (on the Ads, Too), New York Times, accessed at http://www.nytimes.com/2014/06/22/technology/yahoo-wants-you-to-linger-on-the-ads-too.html?_r=0 on 23rd June 2014
Wall Street Journal, (WSJ), (2014), Yahoo: A Changing Internet Pioneer, Wall Street Journal, accessed at http://online.wsj.com/news/articles/SB10001424052970203513604577140950546379684 on 23rd June 2014
Yahoo, (2014), The History of Yahoo - How it all started... accessed at http://archive.today/puqz on 23rd June 2014


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