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The Company Yahoo - Essay Example

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Summary
This case is about the company Yahoo! which is an e-commerce website. This is an online horizontal portal which contains links to many other websites and applications. The mission of Yahoo! is to be the world’s best online discovery and information site. …
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The Company Yahoo
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As the discussion stresses, the company was on the height of its success at the time of dot-com boom in 2000 when its stock price plunged to record high. Yahoo! also started its free mail service in response to the release of Google’s Gmail in 2004. In the following year, the company took over Flickr, a thriving photo sharing service. Yahoo! continued to expand by acquiring and purchasing innovative business in need of capital. The range of services offered by Yahoo! also rose in the year 2005 when the company stepped into Web 2.

0 services. MSN Messenger and Yahoo! Messenger became interoperable in 2005 which was another great achievement for the company. Yahoo! also allowed its mail users unlimited free space in 2007 as it removed the barrier of 1GB storage. In 2008, in the time of recession, the company announced the layoff of 1000 employees. The company was facing difficulties in competing with the efficient Google. The main revenue model for the company was advertising initially. Afterwards, the company started making money from the augmented services that it offered.

Efficient management of capital and reduction in expenditure helped the company to gain its profitability in the pure internet business. In 2008, the company was approached by Microsoft for the offer of a merger. However, Yahoo! rejected the offer of Microsoft as the share price being offered was very low. Recently, Yahoo! webpage is seen to be changed and a new version is launched called the Metro. This new look also has links to famous applications such as Facebook.com and Netflix. E-commerce website like Yahoo!

needs to constantly innovate and develop new features on the website to attract more users and subscribers. The company right now faces lack of originality as it is engaged in merging and acquiring already established businesses like Flickr. The customer data which is private should not be used by the company to be sold to marketing agencies.

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