Case Study #1

OLEH : DIAN ATIKA, RAFIKA, RERY INDRA KUSUMA

MM UGM JAKARTA - KELAS EKSEKUTIF B 27 C

Case Summary

Main Issue

Problem Statement

Analysis

Recommendation

CASE SUMMARY

Yahoo’s Business Operation

Corporate Governance at

Yahoo

Yahoo’s Company Background

The Internet Consumer Services Industry

Business Condition at Yahoo

August 25, 2012 Marissa Mayer Become CEO of

Yahoo

Internet advertising revenues in US USD 31.7

Top three Player: Google [66.4%], Microsoft [15.3%], Yahoo 13.8%

Start on February 1999

IPO in April 1996

Start Yahoo Japan and Yahoo Europe

2001 : already had 2,000 employers.

Carl Icahn’s Proxy Fight

Third Point LLC’s Activism

Resumegate

Product and Organization

Sales, Marketing, and Product Development

Human Resources

Finance

INTERNET ADVERTISING REVENUE IN UNITED STATES IN 2011 IS 31.7 BILLION USD

Source: Kelly Larsen, Director of Marketing at PPC Summit and Landing Page Success Summit, the Web’s largest conversion conference coming up on November 3-23, 2010. http://www.ppcsummit.com/newsletter/google-adwords/latest-search-market-share-google-bing-and-yahoo-comparisons/

Google search shares are showing modest gains. Meanwhile, Yahoo continues to drop in search share, and Bing shows only slight gains in search growth year over year.

66.4%

15.3%

13.8%

SEARCH SITE MARKET SHARE MARCH 2012

FASTEST GROWING OF INTERNET MOBILE MARKET

The fastest growing segment of internet advertising was mobile advertising, which totaled 1.6 million USD in 2011, increase 149% over 2010. In 2011, the 10 leading search and portal companies accounted 71% of total online advertising revenue, while the next fifteen for 11%.

Source: http://techcrunch.com/2011/01/19/the-rise-and-fall-of-yahoo-the-infographic/

Source : History of Yahoo CEOs: Tenure vs. Stock Price http://waxy.org/2012/05/history_of_yahoo_ceos_tenure_vs_stock_price/

History of Yahoo CEOs: Tenure vs. Stock Price

Advertising was the primary revenue drive and Yahoo organized its sales team into 3 categories based on the type of customer type. Yahoo used a combination of organic and acquisition – driven paths to product innovation. It employing a team of software engineers and forming alliances with universities to improve existing product

Yahoo announced cut to its workforce of 2,000 employees in April 2012, it was the 6th major round of layoffs in the last four years. The company’s headcount in September 2012 was around 12,000 spread out in 25 countries. Depending on their tenure and position in the organization

MAIN ISSUE

HR and Corporate Culture

Yahoo Identity as a company

Privately Owned Alibaba Group

Enhance the organization efficient

Technology Firm or Media [Advertising]??

How to use 4.3 billion [after tax] which received from sell half its Alibaba InvestmenT

TARGETING ASIA AND AFRICA MARKET

As both are growing market

PROBLEM STATEMENT

One of the statement from anonymous company:

“The problem at yahoo in the past couple years has been B-players hiring C-players

who were not fired up to come to work and were tolerated too long. I mean nobody

good wanted to come to Yahoo”

While it had started out as a technology firm, its principal revenue source was currently advertising. However, many

Yahoo insiders still regarded themselves as working for a technology company

that had presence in media.

In the late August 2012, Yahoo announced that it would sell half its Alibaba investment. The key challenge to Mayer in this area was

how to use the proceeds of the Alibaba investment.

The internet was moving to a mobile platform where Yahoo had only a

marginal presence. While the mobile platform was showing tremendous

growth.

The growing markets were Asia and Africa, regions where Yahoo had only a weak presence. Should yahoo acquire companies to benefit from growth in

these markets?

ANALYSIS

One of the firs things that Mayer did at Yahoo was to announce that she would review every hire that the company made, a practice similar to that done at Google.

FYI, a weekly all employee meeting every Friday afternoon

Free food in the company Cafetaria Replacement of employees Blackberry phones with

a choice of iPhones or android based phones Launch of PB&J

One of the firs things that Mayer did at Yahoo was to announce that she would review every hire that the company made, a practice similar to that done at Google.

FYI, a weekly all employee meeting every Friday afternoon

Free food in the company Cafetaria Replacement of employees Blackberry phones with

a choice of iPhones or android based phones Launch of PB&J

Marissa Mayer has made one of her first big strategic decisions as Yahoo CEO, as the company announced it was not going to sell its ad exchange Right Media. Some execs under past leadership teams had pushed the company to sell Right Media; instead it will increase investment in the exchange and the company's other ad-tech assets.

Source: http://adage.com/article/digital/marissa-mayer-s-big-call-yahoo-staying-ad-tech/237030/

Marissa Mayer's first edict after taking the top spot at Yahoo! in July 2012 after 13 years at Google: a major overhaul of Flickr, the site's photo-sharing service, followed by a home-page redesign and a string of acquisitions, including $1.1 billion for blogging platform Tumblr and $30 million for story-shortener Summly. Mayer faces intense pressure to modernize the pioneer portal with 700 million monthly users. 2013 SPOTLIGHT: The new mom has taken a lot of flak for her own "too-short" maternity leave and for squashing a work-from-home option for employees. Still, she recently announced a generous parental leave policy: eight weeks for both moms and dads plus $500.

Yahoo has created a new mobile ad marketplace with Mocean Mobile, a large mobile ad network. The partnership allows Mocean to offer its network of mobile media sellers on the Yahoo Ad Exchange. The move ought to be a significant step for Yahoo, which has struggled to grow its ad business over the last few years. Yahoo revenues slipped 2% in Q4, during a period when the online and mobile ad business is seeing robust growth.

http://www.businessinsider.co.id/yahoo-mocean-mobile-deal-2014-2/#.UyTx2IXJSu4

1. Stamped: iPhone app that allows users to keep track of and share the things they like with their friends, such as restaurants, books, films and other apps. App shut down, nine-person team moved to Yahoo's NYC mobile engineering office. Price: Less than $6 million (Yahoo 10-K filing).

2. OnTheAir: Live video conversation platform, like Google Hangout. App shut down, five-person team moved to Yahoo's San Francisco mobile office. Price: Less than $6 million (Yahoo 10-K filing).

3. Snip.it Tool lets users collect ("snip") content from the web and share with friends — like a less visual Pinterest. Price: Less than $10 million (Yahoo 10-Q filing).

4. Alike: App helps users discover venues nearby based on their interests. App shut down, team joined Yahoo's mobile office in Sunnyvale, Calif. Price: Less than $10 million (Yahoo 10-Q filing).

5. Jybe: App helps users discover things to do and places to eat via personalized recommendations. All five (former Yahoo) employees assigned to improve targeting and personalization on Yahoo's products. Price: Less than $10 million (Yahoo 10-Q filing).

6. Summly: iPhone app that automatically aggregates and shares summaries of news articles. Tech integrated into Yahoo News, 17-year-old founder joined Yahoo's NYC office. Estimated price: $30 million.

7. Astrid: Email management and to-do list app for iPhone, Android and Windows 7. Staff joined Yahoo's mobile team. Estimated price: Unknown.

8. MileWise: Lets users factor in airline miles, reward programs, and hotel and credit card points to find the cheapest flights. App shut down, five-person team joined Yahoo's NYC mobile office. Price: Unknown.

9. GoPollGo: Polling tool that could be quickly deployed on the web and even directly on Facebook and Twitter. App shut down, three-person team joined Yahoo's Sunnyvale mobile group. Price: Unknown.

10. Loki Studios: Mobile gaming startup that incorporated personalized elements, like the local weather, into gameplay. App shut down, seven person team joined Yahoo mobile team. Price: Unknown.

11. Tumblr: Blogging network with 300 million unique monthly visitors. Continues to operate as independent company. Price: $1.1 billion.

12. PlayerScale: Toolset that helps developers bring games to multiple platforms with features like leaderboards and virtual currencies. Three-person team continues to offer same services, with new services promised soon. Price: Unknown.

13. GhostBird Software: Creators of mobile photography apps KitCam and PhotoForge2. Apps discontinued, four-member staff joined Yahoo's Flickr team. Price: Unknown.

14. Rondee: Free conference calling service. Platform shut down, staff joined Yahoo's small business team. Price: Unknown.

15. Bignoggins: One-man company that developed bestselling apps for managing fantasy sports teams. Integrated apps into Yahoo Fantasy Sports' flagship apps in late July. Price: Unknown.

16. Qwiki: iPhone app that lets users create short movies. App continues to operate. Estimated price: $40-$50 million.

17. Xobni: E-mail add-on that makes it easier to search and find contacts. Product integrated into Yahoo Mail, staff joined Yahoo Mail team in Sunnyvale. Estimated price: $30-$40 million.

• 18. Ztelic: One-year-old social data analysis startup. Eight employees joined Yahoo’s R&D team in Beijing. Price: Unknown.

• 19. Admovate: Mobile ad targeting technology firm. Team joined Yahoo's display advertising team in Sunnyvale. Price: Unknown.

• 20. Lexity: App maker for small ecommerce businesses. Apps will continue to operate. Price: Unknown

RECOMMENDATION

• Stick on her current plan on corporate culture and increase the quality of hired, morality, and engagement level of the employee to company to bust productivity.

• Improve Yahoo Current Product

• Acquire business which will have prospective future in Asia and Africa Market and also mobile interface

Thank You