Yahoo Falls

Hisham Ghonim        

Case 4.1: Yahoo Falls from Grace

1. How would you describe the yahoo corporate culture prior to Marissa Mayer becoming CEO? How might this have slowed her ability to transform the company?
2. How did the culture change after Mayer’s appointment as SECO in 2012?
3. Do you believe the expectations for Mayer were excessive when she became CEO in 2012?
4. What corporate governance issues dos yahoo face? how do these issues impact’s yahoo’s STRATEGY
5. Discuss how yahoo’s legacy investment in Alibaba and yahoo japan constrained its ability to revitalize its core operating businesses
6. Discuss how the yahoo brand represented both an asset and potential liability for the firm in implementing new strategies.

Slide 1)

• Creative destruction: The best describe for the creative destruction is the process of industrial mutation that incessantly revolutionizes the economic structure and incessantly destroying the old one.  the inescapable conclusion is the factors contributing to a firm's competitive advantage today may be irrelevant tomorrow causing firms fall to the dark side of the market and sometimes out of business.
• Amazon: this huge corporation become the biggest online retailer satisfying large user need in cyberspace

Facebook: dominates the exploding social media space by making the users share whatever they want whenever they want with whoever they want.

Google control the whole internet search engine which you can get more relevant and effective information you need

• The 3 firms shift rapidly form making desktop computer access to Mobil communications that you can purchasing, socializing and searching anywhere anytime
• Yahoo pioneered the internet portal concept that offering consumers single site to satisfy all major online needs. At the beginning of the internet yahoo was perfect example for a company giving the customers what they are willing to pay for connecting a large wide of people in a huge network.
• Yahoo straggled to find place between these three huge companies specially the biggest bulk of yahoo revenue was made from the advertising but facing fb and google yahoo become less attractive for advertisers. revenue decreased from 7.3 to 4.3 between only 7 years 2008:2015.
• Yahoo sells its core internet operated assets to Verizon for a 4.8 billion in cash. The remaining assets would include investments in Alibaba, yahoo japan and small patent portfolio.

Slide 2 question 1

The company appeared more reactive than proactive it changes in its external environment and to have serious overestimated its current core capabilities or its ability to acquire the competence need to complete in the online environment

The firm seemed almost schizophrenic in its view of the future and what they will do to deliver value to shareholders. The firm was directionless sometimes media business and sometimes internet technology business. and more recently seeing greater value in breaking itself up and returning cash through special distributions to shareholders

Slide 3 Question 2

2012 Marissa Maye’s become CEO the believes that new strong management team with fresh perspectives should break the bad luck for yahoo. She successes at updating yahoo website and mail. Employees benefits like iPhone and free food.

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