VISION: Yahoo! To be the center of people's online lives by delivering personally relevant, meaningful internet experiences.

The core of yahoos strategy and operations is to become the starting point for internet users; to provide must buy marketing solutions for the worlds largest advertisers; and to deliver industry-leading open platforms that attract developers and publishers.

MISSION: Yahoo! creates deeply personal digital experiences that keep more than half a billion people connected to what matters most to them, across devices and around the globe. That's how we deliver your world, your way. And Yahoo!'s unique combination of Science + Art + Scale connects advertisers to the consumers who build their businesses. REVISED MISSION STATEMENT: Yahoo! Inc. is a premier digital media company. Through our proprietary technology and insights, Yahoo! delivers personalized digital content and experiences, across devices and around the globe, to vast audiences. We provide engaging and innovative canvases for advertisers to connect with their target audiences using our unique blend of Science + Art + Scale. We provide online properties and services to users as well as a range of marketing services designed to reach and connect with those users on Yahoo! and through a distribution network of third-party entities. Yahoo!s code of ethics is embedded in its six values: Excellence, Innovation, Customer Fixation, Teamwork, Community and Fun. Additionally, although many of the services we provide to our users are free, we do charge fees for a range of premium services.

COMPONENTS IN REVISED MISSION STATEMENT:

Yahoo! Inc. is a premier digital media company (SELF-CONCEPT). Through our proprietary technology (TECHNOLOGY) and insights, Yahoo! delivers personalized digital content and experiences, across devices and around the globe (MARKET), to vast audiences. We provide engaging and innovative (SELF-CONCEPT) canvases for consumers and advertisers (CUSTOMERS) to connect with their target audiences using our unique blend of Science + Art + Scale. We provide online properties and services to users as well as a range of marketing services (PRODUCT/SERVICES) designed to reach and connect with those users on Yahoo! and through a distribution network of thirdparty entities. Yahoo!s code of ethics (PHILOSOPHY) is embedded in its six values: Excellence, Innovation, Customer Fixation, Teamwork, Community and Fun. Additionally, although many of the services we provide to our users are free, we do charge fees for a range of premium services (CONCERN FOR SURVIVAL).

HISTORY
Yahoo! began as a student hobby and evolved into a global brand that has changed the way people communicate with each other, find and access information and purchase things. The two founders of Yahoo!, David Filo and Jerry Yang, Ph.D. candidates in Electrical Engineering at Stanford University started their guide in a campus trailer in February 1994 as a way to keep track of their personal interests on the Internet. Before long they were spending more time on their home-brewed lists of favorite links than on their doctoral dissertations. Eventually, Jerry and David's lists became too long and heavy, and they broke them out into categories. When the categories became too full, they developed subcategories ... and the core concept behind Yahoo! was born. The Web site started out as "Jerry and David's Guide to the World Wide Web" but in due course received a new name with the help of a dictionary. The name Yahoo! is an ellipsis for "Yet Another Hierarchical Officious Oracle," but Filo and Yang insist they selected the name because they liked the general definition of a yahoo: "rude, unsophisticated, uncouth." Yahoo! itself first be located on Yang's student workstation, "Akebono," while the software was stuck on Filo's computer, "Konishiki" - both named after legendary sumo wrestlers.

Jerry and David soon found they were not alone in demanding a single place to find useful Web sites. Before long, hundreds of people were accessing their guide from well beyond the Stanford trailer. Word spread from friends to what quickly became a major, loyal audience throughout the closely-knit Internet community. Yahoo! celebrated its first million-hit day in the fall of 1994, translating to almost 100 thousand unique visitors. Due to the rush of traffic and passionate acceptance and a warm welcome, Yahoo! was receiving, the founders knew they had a potential business on their hands. In March 1995, the pair incorporated the business and met with dozens of Silicon Valley venture capitalists. They eventually came across Sequoia Capital, the valued firm whose most successful investments included Apple Computer, Atari, Oracle and Cisco Systems. They agreed to fund Yahoo! in April 1995 with an initial investment of nearly $2 million. Realizing their new company had the potential to grow quickly, Jerry and David began to shop for a management team. They hired Tim Koogle, a veteran (experienced person) of Motorola and an alumnus of the Stanford engineering department, as chief executive officer (CEO) and Jeffrey Mallett, founder of Novell's WordPerfect consumer division, as chief operating officer (COO). They opened a second round of funding in Fall 1995 from investors Reuters Ltd. and Softbank. Yahoo! launched a highly-successful IPO in April 1996 with a total of 49 employees. Today, Yahoo! Inc. is a leading global Internet communications, commerce and media company that offers a complete, wide-range branded network of services to more than 345 million individuals each month worldwide. As the first online directional guide to the Web, www.yahoo.com is the leading guide in terms of traffic, advertising, household and business user reach. Yahoo! is the No. 1 Internet brand globally and reaches the largest audience worldwide. The company also provides online business and enterprise services designed to enhance the productivity, output, efficiency and Web presence of Yahoo!'s clients. These services include Corporate Yahoo!, a popular tailored enterprise portal solution; audio and video flow; store hosting and management; and Web site tools and services. The company's global Web network includes 25 World properties (countries, Provinces and territories). Headquartered in Sunnyvale, Calif., Yahoo! has offices in Europe, Asia, Latin America, Australia, Canada and the United States.

INTRODUCTION TO CASE:
Yahoo is the 2nd largest internet search engine after Google. They are working in collaboration with Microsoft to fight against Google the largest searching service provider with respect to market share. Yahoo has offices in 25 different location of the world. They are one of the leading and most busy search engines. The main sources of revenue for yahoo are advertisement and marketing on different sites on behalf of thousands of

companies/businesses. Yahoo charge for premium services but most of its services are free of cost for all the users of different locations. During the year 2008-09 yahoo faced many problems and decline of segments they had to downsize and shutdown some segments of there business. After ward yahoo has gain back its revenue position and stability by their useful and achievable policies/strategies.

EXTERNAL ANALYSIS: COPMPETITIVE PORTFOLIO MATRIX CRITICAL SUCCESS FACTORS Strong Brand Recognition (eliminate it) Talented Employee Base Culture Of Innovation/Accountability Advertising International Markets Powerful Business Relationships Customer Loyalty Market Share Sum of Weights WEIGHTS YAHOO
RATING SCORE

GOOGLE
RATING SCORE

MSN
RATING SCORE

0.15

0.60

0.60

0.60

0.10 0.10

3 2

0.30 0.20

4 4

0.40 0.40

3 4

0.30 0.40

0.15 0.20 0.05

3 4 3

0.45 0.80 0.15

4 2 3

0.60 0.40 0.15

3 3 4

0.45 0.60 0.20

0.15 0.10 1.00

4 3

0.60 0.30 3.40

4 4

0.60 0.40 3.55

3 2

0.45 0.20 3.20

EXTERNAL FACTOR EVALUATION

Key External Factors Opportunities The Development of the Yahoo! Directory (it seems to be a company specific factor, gernalizzze it.) Mobile Apps and OSs Potential merger with Microsoft (how a merger is an opportunity)..you often has mention the co. name.. Microsoft can merge with all co.? Focus on related diversification of business segments in Internet space Grasp market share in social networking through product development (if you do product development its your strength if u dont.. its ur weakness..?? how its an operatunity? Threat Competition. (GOOGLE, MSN, OTHERS) (both seems likeee same factor????? Is it? International, culture specific competitors (India, China) Social media advertising (Facebook, Twitter) Govt. interference Terrorism TOTAL 0.05 0.3 0.08 4 2 1 0.2 0.6 0.08 Weight Rating Weighted Score

0.1 0.04

3 3

0.3 0.12

0.22 0.05 0.1 0.04 0.02 1

4 3 3 1 2

0.88 0.15 0.3 0.04 0.04 2.71

INTERNAL FACTOR EVALUATION:

Key Internal Factors Strength High number of unique customers Diversified product portfolio Yahoo! Inc. has strong brand recognition. Partnership with other networks (+social) International business presence (Asia, Europe, Australia) Weakness Declination of the core product High Operational cost 0.1 0.13 2 2 0.2 0.26 0.08 0.15 0.1 0.06 0.09 4 3 4 4 3 0.32 0.45 0.4 0.24 0.27 Weight Rating Score

Lack of innovative products resulting in fading brand image Market share of search engine consistently drop Declining profits and revenues other than search and adv services TOTAL

0.1 0.11 0.08 1

1 2 1

0.1 0.22 0.08 2.54