Following the success of Facebook Week, every week on Read/WriteWeb we are going to focus on a particular Web Technology topic and investigate it. We’ll write 4-5 feature posts on each topic, run a poll, and also revisit past R/WW posts on the subject. We’re calling this new feature the Read/WriteWeb Files.
This week we’ve opened up a file on a recent statement from Yahoo CEO Jerry Yang. It was during Yang’s debut earnings conference call on Tuesday 17 July, in which he said that “the next 100 days or so” will be spent mapping out Yahoo’s strategic plan. Here is Yang’s full ‘100 days’ statement:
“Looking ahead, we want to dramatically improve our performance and capture the major growth opportunities we see ahead for the Internet. I intend to spend the next 100 days or so focused on mapping out a strategic plan for the long-term success, working with our teams to put the right organization and the right people in place, and making any necessary changes.
We are well on our way with a top to bottom review of our business in order to effectively address the company’s challenges and capitalize on our many great opportunities.”
While there is a fair amount of generic executive talk in there (“working with our teams to put the right organization and the right people in place”), the ‘100 days’ bit tells us that Yahoo is serious about getting its house in order. Also Yang’s comment about “making any necessary changes”.
Yahoo Needs to Change
The fact of the matter is: Yahoo needs to change, because otherwise it risks being left behind.
Yahoo is no longer the number 1 property on the Web, at least according to this month’s comScore Top 10 Worldwide Online Properties report. That puts Yahoo at number 3, behind Google (#1) and Microsoft (#2). Yahoo is still ahead of its new media competitors – Time Warner is #4 and Fox Interactive #7.
In important areas, Yahoo is struggling. Its search initiative Panama isn’t making inroads into Google’s AdWords and Adsense. In social networking, Fox’s MySpace and now Facebook are leaving Yahoo in their dust. And in key products Yahoo is being left behind by Google especially, and in danger of being overtaken by new media companies. For example in online video, Yahoo is a distant second behind Google – and only just ahead of Fox.
Of course it’s not all gloomy for Yahoo. Further into the July earnings call, Yang refers to Yahoo being “a deep and active marketplace”, noting that “it’s an ecosystem that involves several hundred million participants every single day; consumers, advertisers, publishers and developers.” And they could well argue they are still the number 1 portal on the Web, due to its largely consolidated properties – whereas Google and Microsoft are all over the shop with their different properties (e.g. YouTube is a Google property, but is largely self-sufficient and not integrated into Google’s portal offerings).
Cut! No, Action!
Looking at the big picture, it’s fair to say that Yahoo’s attempt to become a ‘big media’ company over the past few years – in the mold of a CBS or Hollywood studio – has largely failed. That saw previous CEO Terry Semel exiting stage left this year, and now it’s 100 days and counting under JerryYang’s directorship. It’s kind of like the star director being sacked from a blockbuster movie, and now there’s only 100 days left to wrap filming on what everyone expects to be next summer’s biggest release. Except it was actually due out a couple of summers ago and now the script needs a major re-write! A lot of pressure for the new director.
“Um Tom, unfortunately I’m going to have to fire your ass…” (pic by Maximum Mitch)
In any case by the middle of October, we should expect to see significant changes in Yahoo’s product portfolio and probably a new overall strategy (or at least a better defined one).
What can Yahoo do to get back in the game? In Jerry Yang’s 100 days, what will be on his hit list and what Yahoo properties can he promote or enhance more? Stay tuned to Read/WriteWeb this week to find out. In the meantime, please participate in our special poll:
Originally published on ReadWriteWeb (archived copy)