Site icon Porter Analysis

Porter’s Five Forces Model of Yahoo

<p align&equals;"justify">This is the in-depth analysis of renowned search company named Yahoo&period; This porter analysis of Yahoo will discuss the important factors which is directly impacting the company&period;<&sol;p>&NewLine;<p align&equals;"justify">An American multinational corporation&comma; Yahoo&comma; was founded by two electrical engineers Jerry Yang and David Filo&period; They initiated a website in 1994 called &OpenCurlyQuote;Jerry and David’s guide to the World Wide Web’&period; In April 1994&comma; it was renamed &OpenCurlyQuote;Yahoo’ and its domain came into being in 1995&period; It grew exponentially in 1990s&period; In 2011&comma; Yahoo was worth US&dollar;22&period;24 billion&period; Its headquarters is based in Sunnyvale&comma; California in USA&period; &lpar;Singh&comma; 2014&rpar;<&sol;p>&NewLine;<h2 align&equals;"justify">Competition in The Industry<&sol;h2>&NewLine;<p align&equals;"justify">Since the advancement of the internet industry&comma; Yahoo faces a lot of rivals in the market&period; The biggest competition is the local giant Google but internationally it competes with Baidu and AOL Inc&period; &lpar;Nguyễn&comma; 2014&rpar; The competition is cut throat as all of these offer variety of internet products&comma; advertisement services and technologies which are quite similar to Yahoo and the company has to invest in its R&amp&semi;D to offer unique and beneficial services to its consumers&period; &lpar;Singh&comma; 2014&rpar;<&sol;p>&NewLine;<p align&equals;"justify">Yahoo has a unique take on business news by providing its users with a finance page where the stock-rates and information regarding the companies are available&period; However compared to Google&comma; Yahoo has a long way to go to attain the majority of the clientele&period; By going mobile and introducing a lot of phone applications Yahoo has managed to increase its users by 150 million&period; But they have to catch up in this development to surpass the competition&period; &lpar;Selvya&rpar;<&sol;p>&NewLine;<h2 align&equals;"justify">Potential Of New Entrants into the Industry<&sol;h2>&NewLine;<p align&equals;"justify">The potential of new companies into the market is moderate since developing a website with the availability of huge investment and efficient workforce is not a hard job&period; The technology is easy to imitate and improve upon these days&period; Everyone is offering the same services with their own personal touch to them which makes them exclusive&period; However new entrants have to beat the existing competition and turn up with the distinctive strategies to attract the people&period; This makes the threat of new competition quite low&period; They need experience to enter the market and with considerable training&comma; it is possible&period; &lpar;Selvya&rpar;<&sol;p>&NewLine;<p align&equals;"justify">When Yahoo entered the market the cost to website development was quite low&comma; their establishment was strong and inexpensive&period; But now times have changed&period;<&sol;p>&NewLine;<h2 align&equals;"justify">Power of Suppliers<&sol;h2>&NewLine;<p align&equals;"justify">Yahoo is dependent upon other existing technologies to improve upon its own&period; This puts the suppliers higher in the power chain&period; For instance Yahoo procured Xobni in order to improve upon its email service so the users can have access to easy communication&period; &lpar;Selvya&rpar;<&sol;p>&NewLine;<p align&equals;"justify">There are fewer choices of suppliers in the market so the companies make deals with the competitors in order to promote each other&period; Since Yahoo is looking forward to develop its mobile services&comma; it is dependent on a lot of external technology to help its ideas turn into reality&period;<&sol;p>&NewLine;<h2 align&equals;"justify">Power of Buyers<&sol;h2>&NewLine;<p align&equals;"justify">With so many search engines at disposal&comma; the buyers have low switching costs and can choose to do whatever suits them best which makes the power of buyers moderate&period; Through Yahoo they have a platform to advertise themselves&period; This weakens the power of the buyer&period;By decreasing the cost of switching Yahoo has increased the buying power&period; Yahoo has to offer that exclusivity of its services to its users to make its users not switch&period; &lpar;Selvya&rpar;<&sol;p>&NewLine;<h2 align&equals;"justify">Threat Of Substitute Products<&sol;h2>&NewLine;<p align&equals;"justify">The threat of the substitute in the form of TVs&comma; newspaper and any other old encyclopedia is very low&period; Due to this reason the internet market is growing in relevance&period; Within the internet industry&comma; Yahoo is easily replaced by Google&comma; AOL and Baidu&period; However Yahoo has something significantly distinctive in the running&period; It is Tumblr which is a platform to share and create videos and re-blogging&period; This acquisition by yahoo is unchangeable with any other application&period; &lpar;Nguyễn&comma; 2014&rpar;Yahoo invests in its employees and takes a lot of interviews to setup an intelligent team to satisfy the needs and demands of its consumers&period;<&sol;p>&NewLine;<h2 align&equals;"justify">Conclusion<&sol;h2>&NewLine;<p align&equals;"justify">Since 2013&comma; Yahoo is striving to move forward and up in the market chain and has acquired a lot of existing companies to develop new setups&period; For instance the Net Controls was acquired by Yahoo to be turned into Yahoo Search Engine&period; Tumblr was bought by Yahoo to increase its worth&period; &lpar;Selvya&rpar; Yahoo offers mail&comma; messenger&comma; shopping travel&comma; web hosting and advertisements&period; &lpar;Singh&comma; 2014&rpar; It earns its revenues from that&period;<&sol;p>&NewLine;<p align&equals;"justify">Being a part of global culture Yahoo bears a responsibility to provide the safest and most functional services to the people&period; Being a part of global culture Yahoo bears a responsibility to provide the safest and most functional services to the people&period;<&sol;p>&NewLine;<h2 align&equals;"justify">Bibliography<&sol;h2>&NewLine;<p style&equals;"text-align&colon; left&semi;" align&equals;"justify">Nguyễn&comma; E&period; &lpar;2014&comma; April 23&rpar;&period; Copy of Yahoo&&num;8217&semi;s porter 5 forces&period; Retrieved from Prezi&colon; https&colon;&sol;&sol;prezi&period;com&sol;d6maj3gjvunv&sol;copy-of-yahoos-porter-5-forces&sol;<&sol;p>&NewLine;<p style&equals;"text-align&colon; left&semi;" align&equals;"justify">Selvya&comma; N&period; &lpar;n&period;d&period;&rpar;&period; Yahoo Company Analaysis &period; Retrieved from WordPress&colon; https&colon;&sol;&sol;nancleyva&period;files&period;wordpress&period;com&sol;2014&sol;09&sol;yahoo-final-version&period;docx<&sol;p>&NewLine;<p style&equals;"text-align&colon; left&semi;" align&equals;"justify">Singh&comma; H&period; &lpar;2014&comma; September 21&rpar;&period; Business Analysis on Yahoo&period; Retrieved from Slideshare&colon; https&colon;&sol;&sol;www&period;slideshare&period;net&sol;harnoor992&sol;business-analysis-to-yahoo<&sol;p>&NewLine;

Exit mobile version