Introduction
Yahoo was first introduced to the market in the year1994.This was after an urge of two electrical engineering students from Stanford University David Felo & Jerry Yung,who decided to keep track of their own records in the internet. Yahoo has ever since been developing and many people have come to know of its existence and have really embraced it. The capital base of the company in its initiation stage was approximated at $ 3 million. The highest part of this capital was acquired through public offering, which leads to the sale of 2.6 million shares of the company. Acquisition of online companies involved in communication such as Four11, and Rocket mail diversified the services of the company as it converted them to Yahoo Mail. Since the company has acquired other companies such as ClassicGames.com in 1997, Web Cal, GeoCities and eGroups by mid-2000 (Baca, 197). This also involved partnerships and alliances with companies like Open world in 2003 and SBC, and an agreement with Google which was made in mid-2000 to increase its power age system.
The history of this company has been a combination of different levels in the market which can be understood as one view any product life cycle. The company’s growth was initiated within the mid-90s as people embraced the company and its advantages. This, however, did not limit the company from experiencing its share of challenges in the market as by 2008 there was many internet related companies which had been established. A major Microsoft Company in 2008 had made plans of buying out the company through privatization for approximately U.S $ 44.6 (Biagi, 121). This was, however, unsuccessful as the growth and diversification of the internet industry and its high reception among people has kept it operational.
Competition in provision of internet companies increased with the introduced of Google which had similar features with Yahoo Company. The most prominent was the Google Gmail which in 2007 initiated a service for boundless storage of the emails making it efficient to most customers. This lead to a high loss of its market share making the management to conclude on alliances and partnerships with its competitors to ensure it retains the market. Yahoo has so far aided in communication, marketing and advertising ones products through the net thus making wok easier as it is not time consuming and it is also cost effective (Blozis, 156). This has helped businesses to expand greatly and has also helped them operate along their profit margins.
The management of the company has been in diverse wrangles and major changes have been done to its top managers to ensure its efficiency. The CEO by then, Jerry Yung was removed and his place was put Carol Bartz who managed the company till 2012. Her removal and replacement by Tim Morse was a result of her mischievous actions as she had circulated an office mail indicating of her removal for the CEO office illegally. All this was happening while Roy Bostock was the chairman of the company thus had the authority with the assurance from the Board to remove her from office (Biagi, 99). By 2012, the chairman decided to make major restructuring actions to the company due to several challenges in the company such as its legal case against Facebook on their copyrights this restructure was in three fold with one concerned with the consumers to ensure their grievances were heard and addressed appropriately. The other organ was entitled to marketing the yahoo company through advertisement so that many individuals would come to know of its existence. The last organ was assigned the duty to enhance the technology and was also supposed to aid in the workings of the other two groups
Its availability internationally also increased social security and reduced insecurity as people had diverse means of spending their time. Its introduction also had a great effect on major companies as it increased their relations and interactions with customers. The major link with the company can be described as ensuring easy and immediate communication between different people and communities. This made it possible for companies to supply their customers with the required and right services as their feedback acquired immediately thus gaining their royalty. The loyalty in return would lead to greater profit margins. With this, they would also heighten the communication process.
Conclusion
Presently, yahoo in this year September propelled a modified site and it has enabled its users to access different features on a certain page. It has also continued to acquire more companies for example the bix.com. The current CEO in the company Marissa Mayer is an experienced manager poached from Google to streamline its services. Its profitability margin has increased to a net of $US 3.94 billion, which was reported by end 2012. Its employees range from 11,500 internationally with its headquarters located in Sunnyvale California. The increased competition in the market has, however, not reduced its customer base with approximately 700 million people visiting its website on a monthly basis. This indicates potential of growth of for the multinational internet company.
Work cited
Baca, Murtha. Introduction to Metadata. Los Angeles, CA: Getty Research Institute, 2008. Print.
Biagi, Shirley. Media/impact: An Introduction to Mass Media. Australia: Wadsworth Cengage Learning, 2012. Print.
Blozis, Dana E, and Sharon Cohen. Yahoo Income: How Anyone of Any Age, Location, And/or Background Can Build a Highly Profitable Online Business with Yahoo. Ocala, Fla: Atlantic Pub. Group, 2009. Print.
