WHY DID YAHOO FAIL?

-
WHY DID YAHOO FAIL?
THE STORY YOU WANT TO KNOW

UNFAIR ACQUISITIONS.
Yahoo invested money in acquiring

companies

1. Broadcast.com

2. GeoCities

3. Overture Services, Inc.

4. Flickr

5. Right media

6. Tumblr

YAHOO MISSED MANY GREAT OPPORTUNITIES.
In 1998 Larry Page and Sergey Brin offered their revolutionary search engine algorithm [PageRank technology] to Yahoo for the amount of $1 million[derisory amount in today's time] but yahoo failed to gauge its biggest competitor and refused to the offer. And the rest is history.

APPOINTMENT OF WRONG CEO.
Yahoo goes with Terry Semel as the CEO.

The appointment of irrelevant CEO by Yahoo also enhanced the downfall of yahoo.

MISMANAGEMENT OF FLICKR AND TUMBLR.
In 2005 Yahoo purchased Flickr. Before this acquisitions its executives were planning to turn the photo-sharing site into a social network. Yahoo didn't pay any heed this side, however, and missed the social media boat.

In 2013 Yahoo purchased Tumblr a blogging site in $1.1 billion but failed to extract the desired profit. Thus, Yahoo's mismanagement of acquisitions is also the major cause of its downfall.

FAILING TO BUY FACEBOOK.
In 2006 Yahoo attempted to buy
Facebook at $1 billion. But according to the reports the Facebook's board of directors forced Mark Zuckerberg to accept an offer of
$1.1 billion.
Again Yahoo considers this amount overvalued and missed this golden acquisition as the current valuation of Facebook is approx $140 billion.

REJECTION OF MICROSOFT'S PROPOSAL.
The rejection of Microsoft's $44.6 billion by Yahoo also reflects the lack of foresightedness of Yahoo's executives.
In 2008 Microsoft proposes $44.6 billion to Yahoo but Yahoo considers this amount unfair.

CONCLUSION
Winning rivalries doesn't prove that the future will be yours. You have to keep yourself up-to-date to the current scenario to keep you ahead. Having a huge customer base doesn't mean that they will always be connected to you but they are connected to you because you are offering them something different. If Yahoo had focused on its goal and understood well, it would have become the king of the web world. But Google focused on these that's won the race.

Comments

Post a Comment

Popular posts from this blog

What will life in 2030 look like?

-
Image
What will life in 2030 look like? There will be more global wealth owned by women than men. There will be more computers than human brains. There will be more robots than workers. There will be more currencies than countries. The global economy will be driven by the non-western consumers for the first time in modern history.
Read more

Reasons why Indians loveCHAI (TEA)

-
Image
Reasons why Indians love CHAI (TEA) Indians and tea have a unique connection. It is not just a drink for us, but a ritual, a celebration and even a diversion from the regular mundane affairs and it is that inalienable part of our lives that most of us cannot do without. IT IS CALMING Chai is our go to drink in times of stress. It not just makes us think clearly but also acts as a pain killer! How often have we heard people say that they need chai because their head is aching. In fact there is scientific evidence to back the fact that it can act as an anti depressant and helps reduce tension. Having a stressful day at work? Let's get a cup of chai! IT IS FILLING Have a buttered toast with ginger tea and you are done for breakfast. Tea keeps you satiated for long. It contains antioxidants and biotin which boost and strengthen the immune system. What's more? It keeps you hydrated, as a cup of it contains more than 90% of water. We Indians have a habit of dipping everyt...
Read more