YAHOO2 Executive Summary The report is prepared by Yahoo to probe and present recommendationswhether additional actions are needed to respond to any threat of disruptive innovation (DI) to the Company. This competitive hazard is triggering a reduced earnings of the Yahoo and the Company stands to additionally lose its market share if it does not build viral products that can keep up with consumer trends. A recommendation is presented for Yahoo to come up with extremely efficient processes for its crawling webpage capable of indexing its text and a novel means of ranking the relevance of a page anchored on the number as well as quality of pages which link to it. Moreover, Yahoo should have an interface which is clean refreshingly: in the internet pervaded pages that have list since Yahoo can provide a spare alternative, with a merely box to type search terms as well as search button.
YAHOO3 Table of Contents Executive Summary.........................................................................................................................2 1. The Problem.................................................................................................................................5 1.1 Background............................................................................................................................5 1.2 Definition of the Problem......................................................................................................6 1.3 Evidence of the Problem........................................................................................................6 Figure1: Yahoo Search Revenues...........................................................................................7 1.4 Timing Considerations...........................................................................................................8 1.5 Consideration of the Broad Context.......................................................................................8 2. Part 2 Benefits..............................................................................................................................8 2.1 Benefits to Be Delivered........................................................................................................9 2.2 Importance of Benefits to Organization.................................................................................9 2.3 Evidence of Benefit Delivery.................................................................................................9 2.4 Interdependencies...................................................................................................................9 Part 3 Strategic Response................................................................................................................9 3.1 Method and Criteria.............................................................................................................10 3.2 Strategic Options Analysis...................................................................................................10 3.3 Recommended Strategic Options.........................................................................................10 4.1 Project Options Considered.................................................................................................11 4.2 Stakeholders Identification and Consultation......................................................................11 4.3 Social Impacts......................................................................................................................11 4.4 Environmental Impacts........................................................................................................11 4.5 Economic Impacts................................................................................................................12 4.6. Overall Evaluation of Socio-Economic and Environmental Impacts.................................12 4.7. Financial Analysis...............................................................................................................12 4.8 Risk Comparison..................................................................................................................12
YAHOO4 Part 5. Deliverability of Recommended Solution..........................................................................13 5.1 Details of Recommended Solution......................................................................................13 5.2 Commercial and Financial...................................................................................................13 5.3 Management.........................................................................................................................13 5.4 Delivery................................................................................................................................14 Appendix 1: Yahoo Search Revenue vs. Searches.......................................................................14 Appendix 2: Value Proposition Benefits Canvas: Yahoo for Advertisers....................................15 Appendix 3: Yahoo Busines Model: Revenue Stream?...............................................................17 References......................................................................................................................................18
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YAHOO5 1. The Problem 1.1 Background Yahoo is facing a downfall due to a disruptive innovation (DI) as it failed to quickly adapt sufficiently to consumer Internet major trends which included rise of social media networks and exploding mobile devices popularity. Mobile device popularity stood the most ruthless for Yahoo whereby its Yahoo’s display ads never transform well on small screens while consumers are spending much more time on apps as compared to surfing the Mobile Web (Eke & Singh, 2018). However, Yahoo’s mobile apps, with exemption of Yahoo Mail, did not become big hits for Android alongside iPhone users (Baldassarre et al., 2017). 1.2 Definition of the Problem Todays, all those pairs of eyeballs – more than 200 million of then look at the yahoo site every month in USA but failed to make enough of a profit in order to scale like Google and Facebook because yahoo is a media company and they failed to adapt quickly enough to the two major trends of the consumer internet: the rise of social networks and the exploding the popularity of the mobile device (Marler & Boudreau, 2017). With the yahoo mobile apps display ads do not translate well on small screens that’s way yahoo mobile app never become big hits for iPhone and android users. 1.3 Evidence of the Problem Yahoo is undergoing downfall due to bad bets and inability or failure to effectively adapt. Despite having strove for the past 20 years to build the most visited sites in the US, alongside a vigorous displaying advertising, Yahoo’s status as the 3rd-most-visited website has transformed
YAHOO6 into little more than darkening outlook for the firmwhich defined innovation in Internet early years. Investors have extremely little confidence in Yahoo as they doubt if it is able to stand independently. The revenue of Yahoo has plunged by 11% over the previous year. This is because Yahoo seeded its present problems long ago. While Facebook and Google stood winning the advertising dollars war, Yahoo saw a stable stream of its finest software engineers exit for brighter prospects in the Silicon Valley. Thus Yahoo lacked talent which made it struggle to effectively build viral products that could keep up with trends of consumer. Thus, Yahoo has never been capable of making sufficient funds from the massive number of viewers who look at exciting content and using popular email service to satisfy Wall Street. Yahoo only has a massive traffic but the consumers have lost their patience as it has become a shadow of its former self. Currently, despite Yahoo’s significant investments in mobile products by its CEO (Marisa Mayer), Yahoo’s apps never ranksamongst the Top Fifty in Apple’s app store in the US, based on App Annie analytic company. In contrast, Facebook and Google together possess eight of the leading apps in the US. Moreover, mobile advertising merely yielded 250 million dollars in Yahoo’ revenue in the previous quarter while Facebook generated 4.5 billion dollars from its mobile adds in the past three months of year 2015. Yahoo reported a net loss of 99 million dollars as opposed to a profit of 21 million dollars for same quarter previous year. Figure1: Yahoo Search Revenues
YAHOO7 Source: Net search revenue figures for each quarter since Q1 2009. Adapted from “The YahooSearchRevenueDisaster”byThirdDoorMedia,Inc.2019 (https://searchengineland.com/). In public domain. The above chart indicates Yahoo’s net search revenue figures for every quarter beginning Q1 2008. Since the above chart further provide Y-O-Y growth figures, the 2008 earnings can be extracted. As demonstrated in the chart (2008), the chart indicates that Yahoo was earned nearly 550 million dollar in net search revenue for every quarter. Year 2008 further saw Yahoo quarter for each available data, 552 million dollars earned in 2ndquarter of 2008. Yahoo, however, recoded a plunge in the year 2009.The original decline could have resulted from a typically slower ad time following the busy era sounding Christmas alongside other holidays and the GFC. Yahoo’s plunge continued into 2010- and even prior to Yahoo beginning to use Microsoft’s ads on Yahoo’s US alongside Canadian sites in 4thquarter of 2010.This was attributed to the declining paid inclusion income.
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YAHOO8 1.4 Timing Considerations It is important for Yahoo to address this problem as it has not only caused Yahoo to lose huge amounts revenue through a reduced market share in the past, but the declining trend will continue even into the future. 1.5 Consideration of the Broad Context There as similar needs or opportunities either outside or inside Yahoo that might be tackled together with this current proposal. For instance, this response will be affected by the benefits of a broader sectoral approach. As seen above, Yahoo failed to realize that technology alters fast, and only successful firms can succeed by leveraging smart acquisitioning in future building.As seen in Facebook that bought Oculus Rift and Instagram, and Google that bought YouTube, Boston Dynamics, DoubleClick, and DeepMind hence helping them to flush out their strategies. Yahoo further has an opportunity to buy the failed Google’s PageRank system to help address the problem from external source as this will greatly benefit Yahoo. 2. Part 2 Benefits 2.1 Benefits to Be Delivered Yahoo will benefit its customers from the implementation of the suggested solution. For example, the novel Yahoo Mail App will let its customers personalize their inbox by selecting from various color themes. Every theme comes with 3 different layout alternatives and the customers will elect their color of choice and even set their interface to either dark or light mode. Customers will also benefit from the less clutter saves to more spacing between items thus easily viewing information in their inboxes. Customers will also benefit from the novel side by side preview that shall permit customers to view attachments alongside email simultaneously.
YAHOO9 2.2 Importance of Benefits to Organization A decrease in sales (average) shall negatively impact the Yahoo business performance. A reduction in sales will lead to downward pressure on its products and services and lowered levels of after-sale services. 2.3 Evidence of Benefit Delivery Yahoo has demonstrated a strong track record over the years for delivering value to its customers both as shown by advertising adds and searches and emails. Yahoo stands to significantly benefit from this initiative (Manuela Jr, Rhoades & Curtis, 2016). 2.4 Interdependencies Yahoo will depend from other Companies to solve the problem. For instance, it will have to buy the Google PageRank which will significantly help the firm to achieve its targets. Further, Yahoo will have to effectively implement the proposed solution through cooperation and collaboration with all stakeholders including the customers to know what they need. Part 3 Strategic Response 3.1 Method and Criteria The method used to select the intervention is that which brings more benefit faster than others. In this case, the suggested solution was chosen due to the urgency with which it was required to solve the problem. Thus, Yahoo standards to greatly benefit by adopting the suggested solution in terms of improved ability to compete with Google and Facebook and regain its dwindling revenue flow and market share.
YAHOO10 3.2 Strategic Options Analysis The strategic option is for Yahoo to keep pace with the changing mobile devise popularity to ensure its display ads translate on small screens effectively because consumers are now spending more time on apps than surfing Mobile Web. 3.3 Recommended Strategic Options Option 1:Yahoo mail redesignisan option which is required to solve the problem. It should be redesigned to let the customers personalize their inboxes by selecting from color themes, improve spacing between items to easily view information. This option is the chosen one since it will make Yahoo use the latest web technologies thus making customers’ experience quicker on Yahoo Mail. This will also be optimized for slower connections alongside different screen sizes thus working even smaller screens. Yahoo should integrate this with improvement on its search engines which will let customers hover image icons in their inboxes to view the effectively. It is thus recommended that Yahoo must adapt quickly and sufficiently to consumer Internet major trends which include rise of social media networks and exploding mobile devices popularity (Bekaert et al., 2015). This will ensure it keeps pace with the disruptive innovation due to mobile device popularity which stood the most brutal for Yahoo to make Yahoo’s display ads effectively transform on small screens as consumers are spending much more time on apps as compared to surfing the Mobile Web. This will make Yahoo’s mobile apps alongside Yahoo Mail become big hits for Android alongside iPhone users. Option 2:Yahoo can also improve Yahoo Mail Pro as an improvement to the Ad Free Mail option. Thiswill allowcustomersto subscribeby paying eitherannul or monthly subscription fee of $34.99 and $3.49 where the yearly subscription stays cheaper. This is cheaper
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YAHOO11 as compared to Ad Free’s cost that was initially $15 more per year. This will benefit customers through ad free mail alongside priority customer support for both desktop and mobile. Option 3:The third option is for Yahoo to focus on its mobile app subscription whereby customers can either pay 9.99 dollars per year or 0.99 dollars per month on either iOS or Android app. Yahoo will make its subscription on desktop and mobile auto-renewable. 4. Project Options Analysis 4.1 Project Options Considered Yahoo should make its display ads effectively transform on small screens as consumers are spending much more time on apps as compared to surfing the Mobile Web (Yang et al, 2017). This will make Yahoo’s mobile apps alongside Yahoo Mail become big hits for Android alongside iPhone users. 4.2 Stakeholders Identification and Consultation Stakeholders have already invested in Yahoo with anticipation that it will stay in its leadership stance through happy customers. Making Yahoo adapt quickly and sufficiently to consumer Internet major trends including rise of social media networks and exploding mobile devices popularity will ensure Yahoo keeps pace with the disruptive innovation due to mobile device popularity. This will assist it Yahoo to make its stakeholders happy as its display ads will effectively translate on small screens as consumers are spending much more time on apps as compared to surfing the Mobile Web. This will make Yahoo’s mobile apps alongside Yahoo Mail become big hits for Android alongside iPhone users who are the target customers.
YAHOO12 4.3 Social Impacts The project will contribute socially by increasing the ability of people to interact quickly and efficiently. This leads to happy and repeat customers without disruptions in the supply chain. 4.4 Environmental Impacts Yahoo will contribute to the business environment by implementing the option 1 above. In terms of finance, this project will help Yahoo efficiently align and use the resources. This plan is a reflection of Yahoo’s goal of continuing to thoughtfully spend, effectively operate, as well as drive its profitability. This is a cost-saving effort to help Yahoo effectively manage headcount as well as accomplish stability with lesser costs (Akanle, Adesina & Akarah, 2016). Yahoo remains a subject to the US government regulations of internet, voice over internet protocols/VOIP and mobile as well as services and products that might subject Yahoo to judgments, claims, and remedies which include monetary liabilities alongside limitations on Yahoo business practices. Changes in government regulations or even user concerns about privacy alongside protection of user data, or even any failure to comply that laws, might affect Yahoo’s business adversely. 4.5 Economic Impacts The project will greatly benefit the Yahoo. By creating a competitve edge, it will help attract more customers and hence boosting revenue and net profits margin. Consumer will also benefit through value for money since it will help them get the best from Yahoo. 4.6. Overall Evaluation of Socio-Economic and Environmental Impacts The implementation of the recommendations above will ensure effectiveness in the Company. It will have a positive environmental, economic and social impacts. Environmentally,
YAHOO13 it will help keep environment clean hence less pollution to the environment since only required. Socially, the stakeholders including customers, supplies and partners will benefit since it will fit their needs. Economically, Yahoo will benefit from increased customers due to Yahoo’s display ads effectively transforming on small screens as consumers as Yahoo’s mobile apps alongside Yahoo Mail become big hits for Android alongside iPhone users. 4.7. Financial Analysis The project will help Yahoo gain financially from the mobile ads. This will help the Company become financially stable as it will no longer make huge loses as witnessed in the past. The cost that Yahoo will put into this solution stays much less than the expected benefits. Therefore, the project viable and needed to help Yahoo bounce back (Klyushin & Onotskyi, (2016). 4.8 RiskAnalysis It is essential to test the new concepts and approaches of this pilot solution. Failing to capture sufficient intuitions to guide future growth and limitation remains the worrying risk. Piloting on small-scale stays effective simply with adequate lesson applications to decision making of the future (Nica, 2015). 4.9. Integrated Analysis and Options Ranking Based on the option considered, the intervention was just and hence there was not option ranking. Based on this, it is discovered that Yahoo stands to benefit significantly from this project as only less cost is required to implement. 5. Part 5. Deliverability of Recommended Solution
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YAHOO14 5.1 Details of Recommended Solution A precise suggestion is presented for Yahoo to make its display ads effectively transform on small screens as consumers are spending much more time on apps as compared to surfing the Mobile Web. This will make Yahoo’s mobile apps alongside Yahoo Mail become big hits for Android alongside iPhone users. 5.2 Commercial and Financial The implementation should be mandated to the Lloyd Center world-class engineers and problem-solvers. They have the required capabilities and competencies to undertake successful implementation and review and evaluation of the trial outcome (Günaydin, Skvortsov & Tran, 2016). Yahoo will use the following budget: Research and Développement: $2000 Cost of designers: $20000 Advertising: $3000 Launch: $5000 Total: $30,000 5.3 Management Yahoo will minimize the cost of managing this disruptive innovation project by handing the project management task to its IT department.
YAHOO15 5.4 Delivery YahoowilltaskitsITdepartmenttofinalizethescheduleforimplementation. Nonetheless, the project is envisioned to begin by start of the following earning quarter. Appendix 1: Yahoo Search Revenue vs. Searches
YAHOO16 Source:Sullivan, D. (April 20, 2011 ). The Yahoo Search Revenue Disaster.Search Engine Land, 1-4.https://searchengineland.com/the-yahoo-search-revenue-disaster- 73868 The above chart shows net revenue of Yahoo-before any Microsoft payments’ deductions- plotted against “core searches” numbers in billions approximated to have occurred on network of Yahoo in the United States. It is clear from that chart that well before Microsoft came along, Yahoo already had surged number of seaches wheras its revenues a search kept fallinng (Sullivan, 2011). This took place even after Yahoo had launched its “Panama” ad system in 2007, February which never triggred improvements thus prompting pressure on Yahoo to outsource to Microsoft or Google by invesors.
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YAHOO17 Appendix 2: Value Proposition Benefits Canvas: Value Proposition Canvas is a technique/tool that helps Yahoo to ensure that its service is positioned around what its customers needs and values. Yahoo can use the VPC to refine its
YAHOO18 current service offering. It has two building blocks-Yahoo customer profile alongside Yahoo’s value proposition. Yahoo Customer Profile: Gains:The novel Yahoo Mail App will let its customers personalize their inbox by selecting from various color themes. Every theme comes with 3 different layout alternatives and the customers will elect their color of choice and even set their interface to either dark or light mode. Customers will also benefit from the less clutter saves to more spacing between items thus easily viewing information in their inboxes. Customers will also benefit from the novel side by side preview that shall permit customers to view attachments alongside email simultaneously. Pains:These are the negative experiences, risks, emotions that customers experience in process of getting their job done.The pains include increased fee, delays due to redesign and possibility of government spying on their personal information. CustomerJobs:Thesearethefunctional,emotional,socialtaskscustomersare attempting to execute, problems they are attempting to solve as well as needs they wish to satisfy. The customers want to select color themes and also want Yahoo Mail to be used in smaller screens. Value Map: Gain Creator:This refers to how Yahoo services create customer gains and how it is offering added value to its custoemers. Yahoo services allows increased space, selection of themses and latest web and search engines. Pain Relievers:This describes exactly how Yahoo service alleviates pains of customers. By having redesiged mail, Yahoo customer will solve their problems of working on smaller screens.
YAHOO19 Produts and Services:Services that create gain and relieve pain and that underpin creation of valur for clients. These include improved search engine,and side by side preview. Appendix 3: Yahoo Busines Model: Revenue Stream?
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YAHOO21 References Akanle, O., Adesina, J. O., & Akarah, E. P. (2016). Towards human dignity and the internet: The cybercrime(yahooyahoo)phenomenoninNigeria.AfricanJournalofScience, Technology, Innovation and Development,8(2), 213-220. Baldassarre, B., Calabretta, G., Bocken, N. M. P., & Jaskiewicz, T. (2017). Bridging sustainable business model innovation and user-driven innovation: A process for sustainable value proposition design.Journal of Cleaner Production,147, 175-186. Bekaert, X., Erdmenger, J., Ponomarev, D., & Sleight, C. (2015). Quartic AdS interactions in higher-spingravityfromconformalfieldtheory.JournalofHighEnergy Physics,2015(11), 149. Eke, C. I., & Singh, S. (2018). Social networking as a strategic tool in the management of school-based violence.South African Journal of Education,38(1). Günaydin, M., Skvortsov, E., & Tran, T. (2016). Exceptional F (4) higher-spin theory in AdS 6 at one-loop and other tests of duality.Journal of High Energy Physics,2016(11), 168. Klyushin, D., & Onotskyi, V. (2016). Numerical simulation of 3D unsaturated infiltration from pointsourcesinporousmedia.JournalofCoupledSystemsandMultiscale Dynamics,4(3), 187-193. Manuela Jr, W. S., Rhoades, D. L., & Curtis, T. (2016). The US Airways Group: A post-merger analysis.Journal of Air Transport Management,56, 138-150. Marler, J. H., & Boudreau, J. W. (2017). An evidence-based review of HR Analytics.The International Journal of Human Resource Management,28(1), 3-26. Nica, E. (2015). ICT innovation, internet sustainability, and economic development.Journal of Self-Governance and Management Economics,3(3), 24-29.
YAHOO22 Yang, M., Evans, S., Vladimirova, D., & Rana, P. (2017). Value uncaptured perspective for sustainable business model innovation.Journal of Cleaner Production,140, 1794-1804. Osterwalder, A., Pigneur, Y., Bernarda, G., Smith, A. (2014) Value Proposition Design: How to Create Products and Services Customers Want, John Wiley & Sons. Sullivan, D. (April 20, 2011 ). The Yahoo Search Revenue Disaster.Search Engine Land, 1-4. https://searchengineland.com/the-yahoo-search-revenue-disaster-73868