Wednesday, January 28, 2009

Yahoo business undersiege: Was the Company at Risk?

Yahoo, the iconic company of the web has reportedly loses $303 Million in its Q4. Yahoo’s Q4 loss is its first loss since 2002. The Company is in chaos. But despite of those loses Yahoo! stock were up at $11.69 a share about 3% up, that’s good news for investors but not enough Yahoo! still in great trouble the Company it needs of a bold leadership. The online giant is struggling; its core US business is us under siege. Yahoo has already announced thousands of layoffs and shutdown number of services. I’ll been following Yahoo! since the Microsoft search deal broke out so far Yahoo! is not looking good. The recent confirmation of its new CEO Carol Bartz won’t help Yahoo. A lot of tech savvy people in the Silicon Valley are not impressed about Yahoo new CEO. What exactly Yahoo! should? Well Yahoo! must undertake survival tactics and drastic measures. The Company needs a major makeover Yahoo’s mistakes was in the operational side and management, Yahoo! failed to reduce the operational costs and also to increase efficiency. But the biggest threat to Yahoo’s online business is the current economic crisis it could hurt Yahoo. The current economic crisis has sent ad rate plummeting, advertisers are cutting back on ads spending elsewhere. If Yahoo! CEO Carol Bartz wants to remake the Company and conquer the web then Bartz must focus on US market. The US is the center for online advertising spending and in order to survive and conquer the web (if the God forbid) the Company needs to take or focus mostly to the US market not just abroad. Bartz got a lot works here at Yahoo!, we seen a lot of “crack” at Yahoo’s foundation. We still don’t know what direction Carol Bartz will take Yahoo. My guess is Bartz would dress up Yahoo! for sell or maybe seek an elephant in the room; I’m talking about perhaps some Microsoft search deal. Yahoo! got lot of potentials despite Yahoo’s tragedy it still managed to roll out some “creative works”, the Company recently launched Open Strategy Initiative, and the works is great it adds social networking components to Yahoo! services and it’s allows third party application integrations. But this is not enough; Yahoo! is spending time and resources into web products that won’t integrate to its core business. The search is Yahoo! core business, Yahoo! is losing the search market share, and Microsoft is growing stronger. Yahoo! needs to do something if it’s to thrive in the online business it needs to integrate it web products to its core business just like Google did. Is Carol Bartz got plans for Yahoo?

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