Environment: The constantly changing landscape of the internet is the environment in which Yahoo! exists. Increasing and intensifying competition from companies like Google have seen Yahoo! overtaken in terms of its leadership in key internet markets like internet searching using search engines. The fact that company has spread itself (and hence its resources) over a plethora of internet opportunities has resulted in the company becoming fragmented and uncompetitive against other niche-focussed companies which compete in the various distinct markets of the internet.The company seems to be following a strategy of adopting technological advancements and social trends rather than being an innovator and a driving force behind these factors.
They are constantly playing catch-up in these spheres. Capability: The company also possesses phenomenal assets in terms of its resources. The main strengths of Yahoo! as a company are its history and the Yahoo! brand name. It is a company that is synonymous with the internet as it was an early entrant into the internet market and has thus grown into to the internet behemoth it has become.The employees the company has within its ranks are among the best. The structure of the company has proved to be a weakness. Fragmentation into various business units has given the company a lack of cohesiveness with these units often jostling against each other within the framework of the company. A streamlining of operations and focussing of energies of a highly skilled and passionate workforce on the core competencies that built the company may provide an opportunity to restore some of the company’s lost glory and stave off competition from others.
Streamlining may also increase the efficiencies of Yahoo! as a company. Purpose: Yahoo! has difficulty defining their chief stakeholders. In an attempt to serve all segments of the online market the company hasn’t served any segment satisfactorily. This has had a knock on effect on company performance and has left company shareholders less than impressed.
Further it is taking a toll on the employees who perceive a lack of purpose in their jobs.The lack of decisiveness from company decision makers has left the company in a vulnerable position. Culture: Yahoo! has drifted into a situation where there is lack of accountability. It is taken for granted that regardless of performance that life in the company will carry on as normal.
Work has become routine. There is however a strong culture of belonging in the yahoo workforce. This stems from a historical familial spirit of teamwork which is part of the fabric of Yahoo! ’s workforce.