GROUP 1 JOEY 陳清水 MA1N0207

陳清水 MA1N0207
阮陳福 MA1N0214
HUNG 黎阮維雄 MA1N0204
AARON 林志聰 MA1N0237
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?
At that time, the use of Internet increased rapidly all over the
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.
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
 Changes in Yahoo’s management or leadership, competitors’
hiring practices, and the effectiveness of compensation
Financial risks:
 Fluctuations in foreign currency exchange rates
 Yahoo’s stock price usually changes will impact on Yahoo’s
Question 4
What are the advantages and
disadvantages of each of the funding
options they could pursue?
 Which one do you recommend?
Funding options
Accept Sequoia’s offer
Better management
Well-known venture capital
Give up 25% of ownership
Accept corporate
Retain 100 percent of
May taint Yahoo!’s image
Merging with an existing
Corporate with professional
investor in this industry
Risk of takeover
Accept Sequoia’s offer and launch
Yahoo! as their own company