GROUP 1 JOEY 陳清水 MA1N0207 JACK 阮陳福 MA1N0214 HUNG 黎阮維雄 MA1N0204 AARON 林志聰 MA1N0237 Introduction An American multinational Internet corporation headquartered in Sunnyvale, California. Provide web portal, search engine “Yahoo search”, and related services including Yahoo mail, Yahoo finance….. Founded by Jerry Yang and David Filo in 1994 First known under the name “Jerry’s guide to the World Wide Web” Question 1 What makes Yahoo! an attractive opportunity (and not just a good idea?) How to define opportunity? Attractive-Timely-Durable At that time, the use of Internet increased rapidly all over the world. The businesses needed to use Internet to do their commerce by managing information and to communicating, and the individuals would use it for entertainment and learning. As an early-entry company, Yahoo! provided the related services for all of them A number of businesses already existed in the Internet search space but none of them offered the same service that Yahoo! did Add value for customers Yahoo!’s human-crafted hierarchical approach to organizing the information for intuitive searches was a key component of its value proposition. Yahoo! is able to build intuitive paths that might be singularly, or even temporarily important to the people seeking it. And it does this in a way that no other service has truly replicated. Question 2: How will yahoo make money? Strategic partners By reviewing the choices and options of Yahoo for their partnership plan, this is what we think they should choose: • Partnering with KPCB and Architext may take their interest to the next level, reasons are because they want to expand their search engine and Architext has the program “search and retrieval engine”. • Yahoo has unique search text focus, which allow browsers to search, by partnering with Squoia, they will have the money to invest more on the teachnology and expand it Key activities In order to satisfy technology develop people, the started to cooperate and acquire various search engine from different companies, namely Google, Verizon etc. Value proposition If Yahoo! Vision is to give customer all the answer in one web, then they should focus and the new things or items that are new to the people’s eye. Giving more accurate answer to people who wants to search and find answer fast, will improve the value of Yahoo!. Customer relationship/distribution Yahoo! Has made a big impact on Asian countries, one example is yahoo Taiwan, it’s mostly marketed for people who are trying to find sell and buy products. With the cooperation With logistic teams of 7-11 it made the delivery easier and satisfying. Cost/revenue Question 3 Technology risks: The ability to increase traffic and enhance the Yahoo! Brand. Ability to introduce key new products (core technologies) faster and better than competitor The technology architectures and platforms utilized for the services are complicated New technologies could block display advertisements or search marketing listings. Market risks: Yahoo! compete with several competitors such as Google, Microsoft, and AOL. Ability to develop an international presence and leading brand internationally before the competition Risks from international operations could harm Yahoo’s business, operating results, and financial condition. The price for high speed computer and communication “port’ hardware and software of adequate bandwidth to support acceptable levels of transport and display is still somewhat high Team risks: Employees of the company has responsibility to make the business model work. Weak management team has significant impact on outside investors. Changes in Yahoo’s management or leadership, competitors’ hiring practices, and the effectiveness of compensation programs. Financial risks: Fluctuations in foreign currency exchange rates Yahoo’s stock price usually changes will impact on Yahoo’s brand Question 4 What are the advantages and disadvantages of each of the funding options they could pursue? Which one do you recommend? Funding options Option Advantages Disadvantages Accept Sequoia’s offer Better management capability Well-known venture capital fund Give up 25% of ownership Accept corporate sponsorship Retain 100 percent of ownership May taint Yahoo!’s image Merging with an existing corporation Corporate with professional investor in this industry Risk of takeover Recommendation Accept Sequoia’s offer and launch Yahoo! as their own company