The swot analysis of Yahoo discusses the strengths, weaknesses, threats and opportunities for the internet marketing giant. Although Yahoo has been left far behind by google and facebook, at one time it was in contention for internet dominance. Here is the internal analysis of Yahoo.
Strengths in the SWOT analysis of Yahoo
- Yahoo has the maximum number of users and most of revenue is generated through ads in yahoo mail
- Due to its large mail subscriber base, yahoo is considered to be the powerful marketing company
- Yahoo is known for its web portal, search engine, yahoo finance, yahoo answers, yahoo mail, yahoo directory etc
- Its product portfolio includes yahoo messenger, yahoo mail, yahoo personals, yahoo 360, Delicious, Fickr, Yahoo Buzz, yahoo Mobile, yahoo shopping, yahoo real estate, yahoo next, yahoo boss, yahoo meme, Y! connect Etc
Weaknesses in the SWOT analysis of Yahoo
- As per Jan 2012 data, a survey says Yahoo’s market share in search engine is only 6%
- Google already has 83% market share and the immediate competitors are Baidu which has same 6% and bing has 4% in search engine
- Yahoo is losing its market share in mailing services very gradually due to Google’s strong presence in search engine market and it related product portfolio complementing to search engine services
- Mail services, news, shopping, financial data and business directory services are provided by many others like MSN, CNN, e-bay, Money control etc.
- Financial health of the company is not so promising for the investors. The company’s assets both in terms of intangible and tangible are on the declining side.
- Google being the leading the service provider on the internet , is grabbing the revenues from advertisements
- Most of the services provided by Yahoo are unknown in the internet space
Opportunities in the SWOT analysis of Yahoo
- Yahoo Directory is the most structured and authenticated business directory, any customized development to its user in this will lead to flow of new revenue to the company
- The number of mobile users is constantly increasing in developing nations. Development of Yahoo! Mobile wap services will improve the market share
- Advertising in social media and internet has become essential element for every commodity
- Yahoo has huge potential in combining its services with social media platforms like Flickr etc
- It can focus on diversification of related business segments in Internet space
Threats in the SWOT analysis of Yahoo
- The biggest threat for any global service provider on the internet is increasing competitions in the local market especially China
- Another major threat is addressing of the cultural issues while going to foreign market
- Yahoo’s presence in the search engine services is declining very rapidly because of Google’s strong presence
- The number of competitors is increasing of new innovations in the internet space by young entrepreneurs
- The advertising market which was once dominated by yahoo is being slowly grabbed by the social networking sites like Facebook, Myspace etc
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