YAHOO Harvard Case Solution & Analysis

Market Penetration

By looking at the current situation of Yahoo it can be seen that it is moving towards redesigning because this issue has not been resolved almost since 2009. But as a new CEO Mayer Marissa was willing to make the future prospects of Yahoo by adopting a market penetration approach respectively. By adopting this strategy Yahoo may be able to reduce its risk exposure by operating in its own markets with its existing product line on a website like Yahoo mail and Flickr.

Hence, under this type of strategy Yahoo will also be able to increase the market share. Yahoo will be able to increase the number of users to its website by making it user friendly. It should invest in the existing technologies with the help of their existing offerings on their website. Hence, by the successful use of this strategy Yahoo can compete with other competitors by staying in its own market because by having a large slice of the market share, the company will be able to stop new entrants from entering their market.

Although if Yahoo is able to recruit a staff of high technical knowledge who can come with innovative ideas, then it will be difficult for the competitors to imitate the strategies adopted by Yahoo. But currently Yahoo should focus that the staff to whom they are given the authority to pursue the redesigning process should be held accountable for their activities. Because if they will able to make the redesigning process successful, then it will ultimately increase in the huge customer traffic on their website.

Apart from that Yahoo will be able to bring a feel like Twitter and Facebook by designing the website in such a way that it becomes easy for the customers to be attracted towards the website and becomes their habit. By adopting this approach the company will be able to increase its revenue streams also but it cannot stay in this strategy like forever because of the increased competition in the market.

 Hence it will have to move into another suitable strategy because the competitors nowadays are really good at imitating others. So they may switch the customers away by introducing any new features in their existing website in order to disrupt the customer base of Yahoo respectively.

Strategy 2

Product Development

As per the given facts Mayer Marissa wants to make Yahoo as a regular habit for the consumers like they do not have to think about making any sort of decision. They should be provided with an ease by introducing the new innovations into their lives by remaining in the existing markets.

By improving its current products Yahoo may outperform the competitors on a huge scale. Yahoo should remain in its existing markets, but should come up with new offerings for its current consumers. This was the biggest hurdle that the new CEO took into account for the first time.

The strategy that Yahoo should adopt is Product development; hence by introducing an alternate of existing product based on the existing skills and knowledge, Yahoo can make its brand known in the market. By taking account of its past, Yahoo has not made sufficient investments in its product improvements so now there is a chance to bring major improvements to its website.

Furthermore, CEO should also consider bringing improvements like to incorporate new features to the yahoo mail service, there should be chat rooms for people to interact with each other instantly, there should be a feature of weather updates and live news broadcasts. Despite this the company should mainly look at its existing capital structure before going for any major developments in its existing technology.YAHOO Case Solution

Currently Yahoo will have to improve itself in order to stay in the market because of the extreme technological developments. It is also worth mentioning that if Yahoo adopts Product development approach then it will first of all have to take account of the specific customer needs because by improving the website itself it will not be able to increase the traffic on its website.

Like previously Yahoo purchased a Summarization application which was quite successful at providing the customers with the latest news summary at their fingertips by avoiding the need to read the full news updates which will result in making the interaction better with the existing customers. Apart from that before pursuing any strategy Yahoo should also take into account the strategies that have been previously adopted by its other competitors like MSN.................

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