Yahoo, Silicon Valley’s most precious web company is in great trouble, it has reported a great loss these past few days, about $303 million in its Q4 earning reports. The online giant is struggling; its core US business is in great trouble. Yahoo has already announced thousands of layoffs and shutdown some of its services. I’ll been following Yahoo! Since the Microsoft attack broke out, so far Yahoo! is not looking good. The Company clearly lacks the bold leadership that it needs in this moment of economic crisis, Yahoo‘s $303 million loss in Q4 is Yahoo’s first loss since 2002. The Company without a doubt got a very serious problem its stock plunged, the Company is going nowhere. The recent confirmation of its new CEO Carol Bartz ( Image courtesy of TechCrunch ) won’t help Yahoo, most of the tech people at the Silicon Valley were not impressed about Yahoo! new CEO Carol Bartz even Wall Street guys, they keeps asking questions what exactly Yahoo doing? What direction would Carol Bartz will take Yahoo? My guess is Bartz would dress up Yahoo! for sale or seek another elephant in the room. I’m talking about Microsoft; Yahoo! should strike a search deal with Microsoft. And if Yahoo! should consider staying alone and not taking a deal with Microsoft then it should enhance its search business to remain highly competitive and profitable in online business Yahoo! should focus more on the search market. The online search market is the main revenue generator for web giants like Yahoo! and Google. The search market is the lifeblood of the Company’s business model. But Yahoo’s search market share is dropping fast and it’s not good, its’ could threaten Yahoo’s online business. Yahoo! must undertake survival tactics and drastic measures. The Company needs a major makeover. Yahoo’s mistake was in the operational and management side, it failed to reduce operational costs and increase efficiency. Plus the growing threat of the global economic crisis. The current economic crisis has sent ad rate plummeting everywhere, advertisers are cutting back on ads spending elsewhere. If Yahoo! new CEO wants to remake the Company and conquer the web then Bartz should take an aggressive move here. Bartz must focus mostly on US advertising market; the US is the center for online advertising spending, in order to survive the Company need to focus to the US Market not just abroad. Bartz got a lot of “cracks” on its once highly impregnable foundation. Despite Yahoo! tragedy the Company won’t stop rolling out “creative works”. A great example is Yahoo’s Open Strategy Initiative well it’s an awesome idea it’s add social networking components to Yahoo! services and allows third party integrations. But not all of those creative works are good for Yahoo’s business the Company has spent time and financial resources maintaining services that have a huge financial unjustified overhead. Yahoo! is already losing a search market share to Microsoft, Microsoft keeps growing and it got a strong commitment in search business. Yahoo! is not in position to experiment or invest in technology that won’t integrate with its core business Yahoo! should focus mostly on search just like Google. Yahoo! should take evasive maneuver and move fast before it’s too late, Google always keeps watching and Microsoft is always on guard. Sphere: Related Content
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