Yahoo Inc. is undoubtedly one of the leading global internet services providing company. This multinational corporation offers various internet service products for its world wide market. However, recent technological and other aspects have made the company lose its profitability index. The purpose of this paper is to analyze the industrial situation of Yahoo Inc. It analyses the company’s market position, its competitors, buyers and market influence in relation to barriers of entry. The treatise will also give a future perspective of the industry in which Yahoo Inc. operates.
Introduction
Yahoo Inc. is an American multinational internet providing corporation with its headquarters in California. The company has reputation for its search engine, web portal and search services. Other service offered to consumers by the firm includes Yahoo directory, advertising, video sharing, and Yahoo financing. The corporation is perhaps one of the most popular web portal providers in the United States of America (Koogle, 2000). Of all time, the company has a reputation of being the most successful startup corporation in the country. The corporation has successful rating in terms of its cultural impact, growth, market capitalization and revenue. It is an estimated that 700 million people visit the website on a monthly basis.
On a global scale, the company projects that over half a billion people of diverse nations, visit the website on a monthly basis. The competitor base for Yahoo Inc. has increased over years. These competitors have made Yahoo transform itself in order to meet consumer needs as well as attract more customers. The company management team has undertaken various strategic moves to counter advances from rivals and competitors. The company has resulted into re-branding, advertising and other measures to lure customers. The company has resulted in providing better storage and tracking of personal data (Datta, Joshi, & Wang, 2008). It now offers better communication services. In respect to such measures, the company rolled out an email service in the year 2007 that would see customers benefit from unlimited storage of personal information. The corporation has further improved on its content provision, co-branded with other companies and now offers mobile services (Koogle, 2000). The company therefore, has various strategic goals regarding their competitors and various aspects.
Rivalry among Competitors
There are various companies, which rival Yahoo .Inc products. With the growth of market share and need for different services, various internet companies have been set up. Some of the company’s rival competitors include Google. Inc, Facebook Inc, Yutube, AOL.inc, Ebay, Microsoft Corporation. These competitors have had an influence on revenue of the company as well as its market share. In terms of market share Yahoo, Inc holds a 4.12% of the market share; Facebook holds 11.16% of the market share on the advertising segment. AOL Inc on the market segment holds a percentage of 1.84. Google Inc on the advertising segment holds a 67.02% stake (Kriegel & Schubert, 2002). There have been continuous campaigns by rivals of yahoo to increase their market share and other competitive aspects. This has made yahoo lose considerable ground on its market share.
According to data from market research firms, yahoo market share has dropped by 12.8%. The corporation has struggled to maintain its market share, but despite various innovations it continues to lose ground. Current changes in the internet provision market have been low in the recent past. There has been various policy changes and innovation that has led to low cost for switching brands. This has made it possible for Yahoo to maintain a customer base. Yahoo has a loyal buyer base who benefit from its acquisition of new technology, the company strategy of advertising and its application in over 30 languages make it remain profitable (Chapelle & Chang, 2011).
However on the negative side Yahoo Inc faces challenges from movement of its competitors. Some of the previous Yahoo partners are now its rivals; this has made the switching cost of the buyer to be higher. There is also a high demand for internet services, which promotes growth of other corporations.
Barriers to Entry
In the internet market service provision segment, there is a large pool of corporations. The presence of such large number of companies in the industry is due to the attractive profit available. The industry is also competitive therefore, making it a free market. Moreover, there has been an increase in competition in this market with the low capital investment requirement as compared to previous years. Laws and regulations additionally are not prohibitive f
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