YAHOO INCORPORATION

Strategic Management Research on Yahoo Incorporation

Strategic Management Research on Yahoo Incorporation

Task 1 - Strategic Evaluation of Yahoo

Internal Analysis

SWOT Analysis

Table 1: SWOT Analysis of Yahoo (Yahoo, 2012, p. 18)

Mckinsey's 7S

Strategy - Yahoo has set a long-term strategic direction for the business and its resources.



Shared Value - At Yahoo, shared values have been reflective in the adopted policies and operating practices.

Structure - Yahoo has recently introduced a refined and simplified corporate structure. It follows traditional hierarchy with decentralized decision making structure (Yahoo, 2012, p. 8).

Staff - Internal analysis reports total strength of employees to be 11, 700 that makes Yahoo fifth largest organization within the internet industry (Macroaxis, 2013, p. n.d.).

Figure 1: Strength of Employees (Macroaxis, 2013, p. n.d.)

System - Yahoo has incorporated effective procedures of hiring and promotion in order to attract and retain the best talent of the world.

Skills - Yahoo has adopted the strategy of out of the box thinking, and it has believed in the skills of company employees (Yahoo, 2012, p. 5).

Style - Yahoo has always endorsed an innovative and collaborative culture at the workplace.



Value Chain Analysis

Value chain analysis shows that Yahoo has paid considerable attention to designing activities that achieve higher customer values. Evidence can be collected from improvements achieved in operations and supply chain management. However, Yahoo's reliance on external R&D activities has resulted in weak business progress in enhancing customer value (Yahoo, 2012, p. 25).

Balance Scorecard

Financial - In a holistic view, financial analysis may recognize threats to financial health of Yahoo due to exponential growth in the profit margins of key competitors (Burke et. al., 2011, p. 10).

Customer - Customer orientation of Yahoo has reported to be of sub-par due to declining share of Yahoo in the leading business segments (Allen-Short & Butsunturn, 2010, p. n.d.).



Internal Processes - International business operations of Yahoo are considerably relied upon strategic alliance and M&A (Yahoo, 2009, p. 25).

Learning and Growth - Yahoo has adopted a reactionary strategy that led to declining market position of the company. Yahoo has not emphasized on building internal capabilities and business potential, which may lower the chances of company's survival, in the long run (Burke et. al., 2011, p. 67).

BCG Matrix

Table 2: BCG Matrix of Yahoo (Yahoo, 2012, p. 18)

Economic Techniques

Yahoo adopts market based economic techniques such as production functions.

Knowledge about Rivals

Industry rivalry and fierce competition has been propelled up by the growing buyer power, swerve of substitutes and easy entry into internet industry. It has negatively influenced industry profitability while threatening the survival of weak performers (Investopedia, 2013, p. n.d.).

The Power-Dynamism Matrix

Analysis shows that Yahoo lies at the 'C' category with powerful; yet predictable stakeholders (Business, 2004, p. 224).

Figure 2: Power-Dynamism Matrix (Business, 2004, p. 224)

External Analysis

Porter's Five Forces

Threat of Substitute Products - Easy business access to internet industry has increased the threat of substitute products and internet portals have no choice but to defend themselves against such swift availability of substitutes (Investopedia, 2013, p. n.d.). On the other hand, internet industry is faced with indirect alternatives of ...