Student number: 2652804
Case Study 7-Yahoo
Yahoo is an American public corporation that created as hobby by its two founders, David Filo and Jerry Yang. Jerry Yang and David Filo were two PhD candidates in electrical engineering at Stanford University. In January 1994, “Jerry and David Guide to the World Wide Web,” for their friends to use. Their website was clicked by thousands of people to use. And they notice the potential of their web; they continued to develop their directory. And they broke them out into categories and developed subcategories since their categories became too full and the core concept behind Yahoo! was born. They renamed their directory “Yahoo,” for which the official backronym is “yet Another Hierarchical Officious Oracle.” Filo and Yang Said they liked the word’s general definition, which comes from Gulliver’s Travels by Jonathan Swift: “rude, unsophisticated and uncouth”.
Threats of substitutes:
In September 2001 it closed at all time low of $8.11, And in 2002, Yahoo faced big problem, economic recession made a huge fall and dot-com which sent thousands of internet companies into bankruptcy and caused yahoo stock price jump to $9 a share, which valued the company at less than $10 million.
As Yahoo is trying to develop new services and to compete with Google, and be the Top of internet portals. But Google’s success is going far away from Yahoo. Today, Yahoo and Google compete head to head with search engine are remarkably impressive for the internet users. Google’s share of the search engine market is still growing, and it now has almost double Yahoo’s share of search engine users-49% compared to Yahoo’s 24% in 2006.
Power of Suppliers
Yahoo provides most of their services were free to their users because the advertising revenues earned from the ads on the millions of WebPages on its portal were the...