Reviving Yahoo! - Strategies that Turned Around the Leading Internet Portal

In April 1994, they created a directory to keep track of their personal interests on the Internet. Gradually, they began to spend more and more time on their directory. Later, Yang and Filo started categorizing websites as a way to keep track of all the sites they had visited. They posted this list on the web as "Jerry and David's Guide to the Worldwide Web." The guide became very popular and became the first choice of people browsing the web to find sites intelligently. It helped people to discover useful, interesting and entertaining content on the Internet. In late 1994, the duo changed the name of the guide to Yahoo,³ positioning it as a customized database designed to serve different users. They developed customized software to help locate, identify and edit material stored on the Internet.

During the same year, Yahoo strengthened its management team by appointing Timothy A. Koogle (Koogle) as the CEO. Koogle was an engineering graduate from Stanford University and had spent nine years in Motorola before joining Yahoo. Yahoo was the first company to set up an online navigational guide on the Internet. It offered media content, communication, personalized information and commerce services on its website (Refer Exhibit IV). Yahoo generated its revenues mainly through online advertisements, primarily banner ads⁴ and ad placement fees, promotions,⁵ sponsorships, direct marketing⁶ and merchandising. Yahoo also generated revenues from monthly hosting fees and commission on online sales from its merchant partners...