Sample Case Study on the Yahoo company’s major strengths

SWOT analysis

Strength

The company’s major strengths lie in several pivotal points. First, the image, vision, and mission of the company’s CEO are a major strength since it boosts the company’s growth model (Risen, 2013). Secondly, the company’s improved stock performance shows its financial stability hence increasing investor and shareholder confidence. This has boosted its financial reserves for use in the acquisitions of companies that it deems as having potential for driving its growth agenda. The company also has a home page that can be easily revamped regularly to suit the needs of its customers, advertisers, and company growth agenda. Finally, the major strength of the company lies in its increasing number of users visiting its website (valued at 800 million users in 2013), and its increasing number of mobile users valued at 390 million in 2013.

Weakness

The company’s weaknesses are few but diverse. First, it lacks a clear direction for its business focus that will drive its growth and financial agenda in the long term. Another major weakness is its lack of a mobile pivot, either in the software or hardware sections. For instance, its competitors Google and Microsoft both have android and windows mobile as their software market penetration respectively, as well as Google’s Nexus phone, and Microsoft’s recent acquisition of Nokia.

Opportunities

The increasing use of the mobile phone as the device of choice for accessing the web offers a unique opportunity for the company to target this virgin market segment. Secondly, the rise in internet usage globally to its current 65% connection rate means that there is potential for growth in its users. The lack of a clear and attractive advertising strategy for use in the mobile segment gives an opportunity for yahoo to rebrand and restructure its service offering to suit the needs of this market segment.

Threats

The major threat to the company is the number of competitors that already hold vast amounts of users in different media fields. For instance, Google’s YouTube has more than 12.6 billion monthly views, Facebook 800 million, and yahoo only 380 million (Risen, 2013). Another threat faced by the company is the increased need for the company to rebrand its service to suit a social outfit. This strategy faces myriads of competitors such as the video streaming Netflix and Hulu, and photo and video sharing Facebook and YouTube, among others. Other challenges facing the company are such as online security and social media advertising influence.

Growth Initiatives

The company wants to delve into high-end cable television by streaming video services and offering online episode viewing of series (Shields, 2014). This strategy is positioned to increase advertising space and revenues through its viability is yet untested. The company has also acquired the company Aviate, which is a strategic move aimed to increase its capacity to produce content for the mobile users of Android software (Duckgeischel, 2014). Finally, the rebranding of the company to offer more social services such as photo sharing, app development, and storage, among others is believed will rebrand it to become a strategic means for users to acquire and use social services at one stop. Therefore, based on this analysis, the best growth agenda for yahoo is to focus on both the mobile and PC users market through the provision of content that would increase user experience. This would have the ultimate effect of increasing the number of users and attracting advertisers to the various social and media services being offered by the com

References

Duckgeischel, J. (8 January 2014). CES: Mayer shares Yahoo’s 2014 strategy. Messaging wire. Retrieved from http://www.messagingwire.com/aev-1678.aspx

Risen, T. (18 October 2013). Yahoo still searching for winning strategy. US News. Retrived from http://www.usnews.com/news/articles/2013/10/18/yahoo-still-searching-for-winning-strategy

Shields, M. (6 April 2014). Yahoo makes new push into video content: internet company hunts for original web-series programming. The Wall Street Journal. Retrieved from http://online.wsj.com/news/articles/SB10001424052702304819004579485820610824060?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304819004579485820610824060.html