Reorganizing Yahoo!
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Case Code: BSTR258 Case Length: 24 Pages Period: 2000-07 Pub Date: 2007 Teaching Note: Not Available |
Price: Rs.400 Organization: Yahoo! Industry: Internet and E-Commerce Countries: US Themes: Corporate Restructuring |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The Problems
Though Yahoo possessed search engine and search advertising technology, integrating both proved to be a difficult task. The engineers in the company had to be convinced that, rather than build the new technology from scratch, it was better to use the acquired technology from Inktomi and Overture. In order to convince the engineers, Semel announced the integration of Yahoo, Inktomi, and Overture to create the best search technology for consumers and an effective advertising platform for the advertisers. However, even till early 2004, Yahoo continued using Google's search engine. In February 2004, Yahoo launched a web crawler based search engine, based on Yahoo Slurp...
The Reorganization Program
On December 05, 2006, Semel announced the reorganization of Yahoo and major changes in its executive team. Semel announced, "Yahoo! is now entering what I call its third phase - one focused on customers. We're seeing the competitive and advertising landscapes evolve yet again and today we announced a realignment that we believe will let Yahoo! capture the major growth opportunities ahead."...
The Road Ahead
Yahoo's reorganization was expected to eliminate the bureaucracy that had crept into the company over a period of time. After the reorganization was announced, the company's stock price fell by 2% to US$ 26.86. Industry experts were of the view that it was high time that Yahoo was reorganized as the previous reorganization was done about five years back (Refer Exhibit VIII for Yahoo's stock price chart). Another strategy that Yahoo adopted was 'Brand Universe' through which it planned to develop sites dedicated to high profile entertainment brands including television shows like Lost and The Office , video games like Halo and The Sims , movies like Harry Potter...
Exhibits
Exhibit I: Yahoo - Income Statement
Exhibit II: A Note on Online Advertising Market in the US
Exhibit III: Yahoo! - Home Page in 1996
Exhibit IV: Yahoo! - Home Page in 2004
Exhibit V: Yahoo! - Acquisitions
Exhibit VI: Excerpts from 'Peanut Butter Manifesto'
Exhibit VII: Divisions in Advertising and Publishing Group
Exhibit VIII: Yahoo - Stock Price Chart (April 2002 - March 2007)
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