@20131.0 Introduction The business environment has over the years been very dynamic. Consequently, as a result of the changes in the business environment, all organizations are faced with various challenges. Yahoo as one of the dominant firms in the online business environment has experienced various challenges and changes as a result of the changes in the business environment. This is because online business has witnessed rapid changes in the recent years. When Yahoo was first initiated in 1994 by Jerry Yan and David Filo who were Stanford University students, the company’s performance was outstanding however as years went by the performance of the company has been an issue of intense debate.
This particular paper seeks to evaluate a case of reorganizing Yahoo by Indu, P and Vivek Gupta. 2.0 Yahoo! ’s current strategy2.1 Corporate Level Strategy Corporate level strategy is concerned with the manner in which value will be enhanced in various business units that exist in the organization. Yahoo’s current corporate level strategy involves putting the right people in the right places in order implement the growth strategy.
People or the workforces are an essential competent of enhancing value to various business units within an organization. Consequently, Yahoo has been working towards recruiting, developing and retaining the best talent. Such an approach will enable the company to increase innovativeness, accountability and speedy decision making which will further add value to the business units. As argued by the resource based view (RBV), it is essential for an organization to identify the key resources that can enhance a competitive advantage. As a result, Yahoo’s current corporate strategy of investing on the human resource can be argued to be a strategy of improving growth of the company which may further enhance Yahoo’s competitive advantage within the online market.
Corporate level strategy also entails the rationale behind the design of portfolio and the allocation of resources to various businesses. In order to deal with the dynamic business environment, Yahoo has developed a number of product portfolios. As indicated by the case, the Yahoo come up with Panama, which was a new ranking model for its advertisers. Indu and Gupta (2007) highlights that in order for Yahoo to re-claim the customers it had lost to Google, Panama as a new ranking model would ensure that advertisements are ranked on the basis of the highest bid on search key words by the number of clicks and advertisers.
Indu and Gupta (2007) further highlight; that Panama received encouraging reviews from both advertisers and customers. Nevertheless, the launching of Panama was greatly delayed by various challenges that the company has been going through. Apart from the Panama product, Yahoo has also come up with various types of product portfolios such as Yahoo Widgets, My Web, which are aimed at enhancing its competitiveness within the market. Acquisitions have also been a major corporate level strategy that has been undertaken by Yahoo.
In order to boost its presence in the emergent social network market, Yahoo has made several plans in order to acquire dominant companies in the industry. Some of the plans have been success while some have failed. For instance, in order to consolidate its position in the market, the company successfully acquired companies such as Hotjobs. com and overture for approximately 435$.
Yahoo’s acquisition strategy has also faced a number of setbacks. For instance plans to acquire one of the leading social networks Facebook, failed after Facebook backed out of the deal. In addition the attempt to acquire YouTube also failed after the site was acquired by Google.