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SWOT Analysis of Yahoo | Yahoo SWOT

 

Yahoo is a leading world wide web company in the world. Yahoo was founded in 1994 and its current CEO is Marissa Mayer. In this Yahoo SWOT analysis, we will talk about the strengths, weaknesses, opportunities, and threats of Yahoo. It is a useful tool that helps to measure an organization’s working and operation. Let’s start this analysis:

 

Company Name:  Yahoo

Parent Organization: Verizon Media

Founders:  Jerry YangDavid Filo

Year founded:  Jan 1994

Headquarters:  Sunnyvale, California, U.S.A.

CEO: Marissa Mayer

Industry:  Web Portal

Area Served: Worldwide

 

SWOT Analysis of Yahoo | Yahoo SWOT

Strengths of Yahoo:

 

  • Powerful Status in Online Ads:

Yahoo has a strong position in online advertisements because it is a leading search engine in the world. At once, it was considered a profitable advertisement industry. They advertise for different websites same as the Google does. Yahoo is still doing well in its business and earns handsome profits every year.

  • Extensive Internet Service:

Yahoo provides an extended range of internet services to its customers. It has many service portfolios such as Yahoo Real Estate, Yahoo Buzz, Yahoo Shopping, Flickr, and many more. These services have taken the company to a whole new level.

  • Huge Consumer Base:

As it is one of the oldest search engines, that’s why they have a very strong consumer base. They have more than 350 million users globally. These statistics are enough to tell their position and popularity.

  • Powerful Employee Base:

With 8000 workers, Yahoo has a strong employee base in the world. So, we can say that it is a reliable search engine. These workers struggle very hard in order to take the company to the next level.

 

SWOT Analysis of Yahoo | Yahoo SWOT

Weaknesses of Yahoo:

 

  • Weak Market Share:

From the emergence of Google, Yahoo is facing a continuous decline in its market share. According to a report, Yahoo has only 6 % of the market share whereas Google has 80 % market share. This shows the strong position of Google and the poor condition of Yahoo. This kind of thing can be alarming for the growth and revenue of Yahoo.

  • Lack of Diversification:

Even though Yahoo emerges with great potential and gained popularity in a short period of time, but it did not make any useful diversification and innovation in its services and work. Due to this reason, they continuously decline in its working because Google offers innovative and attractive features. That’s why people attracted to Google and the impact of Yahoo is decreased.

  • Hacking Controversies:

They also fail to protect the information of their users. Approximately 500 million customer’s data was hacked by hackers in 2014 which eroded the trust of users. These kinds of several cyberattacks cause many controversies which leads to the failure of Yahoo.

  • Declining Financial Resources:

In 2015, Yahoo claims a loss of 404 billion dollars. Due to this loss, Yahoo’s profitability is decreasing day by day. This is the reason Yahoo’s financial health is declining. These weaknesses have damaged the company’s name and the loss of its users.

 

SWOT Analysis of Yahoo | Yahoo SWOT

Opportunities of Yahoo:

  • Focus on Enhancement:

Yahoo’s business directory is one of the most popular services. It is imperative for Yahoo to focus on the enhancement of the business directory in order to regain its position and catalyze its profits. Well, it just a minor improvement but it can impact the growth of Yahoo.

  • Mobile Technologies:

It’s a big opportunity for Yahoo to enter in mobile software industry and innovations to diversify its portfolio. Many people are using smartphones to use the internet, so it can open a window of opportunity for Yahoo and can be profitable.

  • Mergers and Acquisitions:

Yahoo has made many mergers and acquisitions with different companies. It is necessary for Yahoo to make acquisitions with leading companies and organizations. This will open a new door of opportunity for Yahoo.

 

SWOT Analysis of Yahoo | Yahoo SWOT

Threats of Yahoo:

 

  • Stiff Competition:

Google is one of the biggest search engines in the world with more than 80 % market share. Yahoo has a 6 % market share which clearly shows that Google is unbeatable. This is due to the lack of diversification in strategies and innovation of Yahoo.

  • Obstructions in Worldwide Expansion:

China and India are the two biggest market players due to their population. Both countries have launched their own search engines. So, the use of Yahoo is also declining in these major countries. This could be the biggest threat for Yahoo and Google as well.

  • The Appearance of Social Media:

Many social media sites like Facebook, Instagram, MySpace, and so on are very popular among people due to their attractive features and services. They also affect Yahoo’s profitability and growth.

 

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