Abstract

The case examines Yahoo's organizational restructuring plans and the launch of its new search engine Panama. Though Yahoo was one of the few companies that survived the dotcom burst, it could not sustain its lead in the rapidly changing business environment and lost the first mover advantage it had in online advertising business. Yahoo acquired several companies in search technology and search related advertising business but failed to take advantage of those acquisitions and fell behind Google, which emerged as a major player in the Internet search market. Yahoo tried to cater to a wide segment of audience and this effort resulted in a highly cluttered home page. By late 2006, Yahoo faced several problems which were widely reported in the media. In order to address these problems, Yahoo announced reorganization in December 2006 and within a few months it released 'Panama.'

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the problems in the business model of Yahoo!
• Examine the strategies adopted by Yahoo! to revive its business operations
• Critically analyze the reorganization plan of Yahoo!

Keywords

Yahoo!, Organizational Restructuring, Reorganization, Peanut Butter Manifesto, Panama, Online Advertising Market in US, Online Advertising Techniques, Internet Search Market, Google, Growth Strategy, Innovation, Click-through Rates, Unique Visitors, Banner Advertisements, Promotional Sponsorships, Overture, Hotjobs.com, Matrix Organization