External Factors Affecting Yahoo's Performance from 2004 to 2007

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Environmental scanning is critical in building organizational strategy . In this report, three external factors , that were affecting Yahoo performance during the period January 2004 to December 2007, will be domenistored.

Historical Overview
During the period 2004 to 2007, Yahoo was considered a global Internet business provider and its site was one of most daily visited site. Yahoo site was acting as gateway for multifarious services for users. As per annual report for 2006, Yahoo was offering services including search , Email , recruiting ,dating ,auction , travel research and booking , shopping, local , web hosting , community , communication and information. Advertisement was the major source of revenue for Yahoo in addition to revenue of premium services provided to small business and consumer. Yahoo search technologies was main driver to increase site users and subsequently generate revenue from advertisements. Till June 2007 , Terry Semel was acting as chairman of the board and Chief Executive Officer for. The number of employee was 14,300 as in December 2007.

External factors impacting Yahoo During the period 2004 to 2007
In order for Yahoo to retain their users and attract new users, Yahoo was under pressure to develop and enhance their product and respond to new changes. Yahoo was unable to thrive and it was impacted negatively by external factors. From 2004 to 2007 , the net income of Yahoo has been dropped by more than 20% while net Income for Google in same period multiplied 12 times. In these report, three major external factors are identified that were impacting Yahoo performance during the period . These external factors are listed below.
Competition
Technology
Government and special-In...

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...d to excel in internet search industry , which is the major source for revenue and attracting users, because Yahoo was lacking the agility in adapting new technologies while other competitors were able to.Yahoo was struggling in integrating new technologies acquired through acquisition. Yahoo presence inside china ,through its chinese subsidiary and later on merging with chinese company , forced the Yahoo to comply to chinese government. This exposed the company to human right condemnations and it was serious threat for the company reputation.

Works Cited

http://money.cnn.com/2006/02/21/news/international/pluggedin_fortune/ http://money.cnn.com/2007/06/18/news/companies/yahoo_semel/ http://news.cnet.com/2100-1024_3-5160710.html http://www.businessweek.com/stories/2006-10-01/yahoos-strategy-growth-by-acquisition http://news.cnet.com/8301-10784_3-9730999-7.html

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