External and Internal Environment for Yahoo Corporation

  1. Introduction

All business operations have external and internal environments. Internal environment comprises of factors such as workers’ attitudes, workforces, equipment and new strategies of the organization among others. External environment is made of factors such as the economical, technological, social, and political factors. An organization can control the internal environment but it cannot control the external environment (Akbari & Yunusi, 2011).

External environment can pose threats or offer opportunities to an organization. Internal environment imparts strength to an organization but it can lead to its weakness. Yahoo Corporation has both the internal and external environments and these influence its operations, productivity and performance.

    1. Organizational Overview

Yahoo Incorporated is one of the internet service providers offering services to individual users and businesses across the world. It was founded in 1995 by David Filo and Jerry Yang with its headquarters in Sunnyvale in California.

Yahoo has been expanding over the years opening office sites in Asia Pacific, Europe, Latin America, US and Canada (About Yahoo, 2013).

  1. Identification and Effects of High Ranking General Environmental Segments

Among the general environment factors that affect Yahoo include technological advancement and political environment. Politically, countries like China that support their search engines have made Yahoo ineffective. Thus, to conquer political challenges Yahoo must engage itself in regional and national political processes in different countries.

Technological environment affects how individuals across the world access the internet. Yahoo faces a challenge in monitoring, forecasting, scanning and assessing rudiments of the great essence of technological advancement.

In internal environment, Yahoo has to employ labor that can evaluate the environment and understand changes, trends, opportunities and threats posed by the factors of different environmental segments.   

  1. The most Significant Forces of Competition

Five main forces that affect Yahoo competition are threat of new entrants, bargaining power of suppliers, bargaining power of buyers, rivalry from the market competitors and substitute services threat (Varghese, 2012).  Other threats include advertising agencies and mechanisms such as electronic and print media. Other competitors such as You Tube and American Google pose a threat to Yahoo.

    1. Assessment of Addressing these Forces in the Recent Past

The firm has invested heavily on research. Yahoo has always striven to improve its services, invested in blogs, and covering broader topics to provide users better experience. It is also collaborating with different sites through viral advertising and integrating more services to counter competition.

  1. External Threats Affecting Yahoo and Opportunities Available

Among the opportunities that Yahoo has include online video advertising, expansion potential and mobile technology potential.

Among the threats facing the firm include lesser online searches as compared to competitors such as Google, and negative attitude of users towards internet advertising.

  1. Greatest Strength and Weaknesses of Yahoo

Strengths of Yahoo include ability to beat its main rival Google in the mobile market, brand recognition, allied advertising and more users.

Its weaknesses include over dependence on the solitary invention, poor ranking on visitation of video sites and decrease in advertising revenues.

5.1 Handling the most Serious Threats and Opportunities and Strategy of Maximizing Strengths and Fixing Weaknesses

To overcome its weaknesses and challenges, Yahoo must focus on capturing large global markets. It must also make its internet services available to these markets; recognize the likes, habits dislikes and features of its markets. Finally, Yahoo should invest in projects and products that will satisfy the markets.


Yahoo must come up with belligerent strategies and use its strengths to enhance organizational competitiveness.