Swot Analysis Of Yahoo Industry

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Industry Profile
The Yahoo INC industry which is one of the global internet consumer services industry. The market size for Yahoo is large with numerous online visitors and internet users within this industry. Majority of the customers in this industry is to access to any information by using the Yahoo search engine. The scope of the competitive rivalry includes with any companies that provided some segments whose boundaries were rapidly changing, as well as a wide range of information and shopping. This companies includes Microsoft, Google, Facebook, Twitter, Paypal and Alibaba. Besides, the learning curve for this industry is high because it requires a high technological development skills and supported by both tangible and intangible infrastructure. Therefore, it will gives an advantage for those companies which have been in this industry for a longer period over the new entrants. The global media information service industry is also difficult to entry and exit. The pace of technology change within this industry is endures a fast process due to the discrepancy and is essential to keep up with the product management, engineering, advertising and overall strategy. There is also a high economies of scales when it comes to marketing and advertising and also the amount of users surf the internet. The capacity utilization is consider moderate and the overall profitability is low to moderate profits due to a large market size.
Porters Five Forces
The threat of new entrants is relatively low. Entry to this industry due to a high capital requirements and economies of scale which acts as a barrier to entry into the industry. Alternatively, the threat of substitute is low. There are various type of substitution for Yahoo but there are m...

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...e, having some mergers with other outsourcing companies such as mobile companies could be fast to approach the future.
Strategic issues
After interpreting both the internal and external analysis, it is clearly states that Yahoo has lack of effective strategy in the market as we can see in the VRIO analysis, which is also the key competitive advantage and the need to grow in this industry. While for the driving forces, which explain the social trend and technology are affecting the industry based on the online user’s willingness to spend their time on social media. Therefore, Yahoo is now moving to the mobile app service. This issue which is also leads to the Porter’s Five Forces where the availability for substitution is high in the industry. For the strategic profile, they have to build more good relationship with other market in order to develop a strong brand.

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