Reviving Yahoo! - Strategies that Turned Around the Leading Internet Portal|Business Strategy|Case Study|Case Studies

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

            
 
Case Studies in Business, Management Cases | Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR064
Case Length : 13 Pages
Period : 2001 - 2003
Organization : Yahoo
Pub Date : 2003
Teaching Note :Not Available
Countries : Japan
Industry : Information Technology and Related Services

To download Reviving Yahoo! - Strategies that Turned Around the Leading Internet Portal case study (Case Code: BSTR064) click on the button below, and select the case from the list of available cases:

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies


OR


Buy With PayPal

Amount to be paid:



Prefer to pay in another currency ?
Select Currency for Payment



Exchange Rates: Click Here
Delivery Details: Click Here



Price:

For delivery in electronic format: Rs. 300 ;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra

Business Strategy Case Studies
Business Strategy Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Area Specific Case Studies
Industry Wise Case Studies
Company Wise Case Studies

Custom Search


Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

"Semel's not a turnaround expert. And he doesn't know how to sell to large advertisers. He has extensive experience running a media company and that's what matters." 1

- Scott Reamer, an analyst at SG Cowen Securities Corp, US.

Introduction

Yahoo! Incorporated (Yahoo), the world's leading Internet portal shocked the investor community by reporting dismal financial results in fiscal 2001.

The company's revenues dipped by more than 35% from $1.11 billion in 2000 to $717.44 million in 2001. Yahoo reported losses of $92.79 million in 2001 compared to net profit of $70.78 million in 2000 (Refer Exhibit I). Soon after the announcement of the results, Yahoo's share price fell to $15, down by 94% from its all time high of $237.50 on January 3, 2000 (Refer Exhibit II). Industry experts, media and stock market analysts were quick to write off Yahoo and predict the end of Yahoo like many other dotcoms. BusinessWeek, May 2001 report asked, "Will Yahoo be the ultimate example of blown opportunities during the Web's glory days?" Analysts had doubts whether Terry S. Semel (Semel), the new Chairman and CEO, who joined Yahoo in May 2001, had the capabilities to solve the company's woes.

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Lanny Baker, Managing Director of Salomon Smith Barney, remarked, "Semel has little experience courting big-name, traditional advertisers - the very folks Yahoo desperately needs to rejuvenate its business. The movie business is not the media business. The media business is all about selling ads.

The movie business is all about spending money."2 However, after two years on the top post at Yahoo, Semel had proved his critics wrong. By adopting a strictly formal culture and a 'buttoned down' management approach, Semel was able to carve out one of the most spectacular turnarounds in the corporate history. Semel solved several problems faced by Yahoo like infighting within the management, arrogant culture, and declining revenues and profitability. Yahoo reported improved results in the fiscal 2002 with the company generating a net income of $106.9 million on revenues of $953 million. Moreover, the company continued the profit momentum in the first two quarter results in 2003 (Refer Exhibit III). Yahoo's shares, after touching a low of $9 in September 2002, had bounced back to $30 by July 2003.

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


Custom Search





Economics for Managers Textbook
Textbooks Collection

Economics for Managers Workbook
ICMR books Collection

Case Studies in Business Strategy Volume VI

Case Studies in Business Strategy
e-Book on Business Strategy

Case Study Volumes Collection

1] As quoted in the article, "Inside Yahoo," by Ben Elgin, Linda Himelstein, Ronald Grover and Heather Green, posted on www.businessweek.com, dated May 21, 2001.

2] As quoted in the article, "Terry Semel's Stress Test at Yahoo," by Ben Elgin, Ronald Grover and Stefani Eads, posted on www.businessweek.com, dated April 19, 2001.

 

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Workbooks, Case Study Volumes.