presentation deck - yahoo!
TRANSCRIPT
Revitalizing the “quintessential internet start-up”
Issues
Objectives
Recommendations
Implementation
Risk mitigation
Results & Conclusion
Appendices
Leadership distracted by conflict
Recent actions misaligned with strategy
Mismanaged Asian relationships
Refocus and reinvigorate
Establish dominance in digital media
Rekindle Asian relationships
Yahoo! creates deeply personal digital experiences that keep more than half a billion people connected to what matters most to them, across devices and around the globe.
We deliver your world, your way.
Alignment with corporate strategy, advertising, digital media, international business, top-line focused
Member Region Specialties
Roy Bostock N. America Advertising (D’Arcy, Masius, B&B)
Patti Hart N. America Consumer telecomm/broadband (IGT)
Susan James N. America Accounting/audit (EY)
Vyomesh Joshi Middle East Technology (HP)
David Kenny N. America Digital Media, SaaS, Mobile (Akamai)
Arthur Kern N. America Media – TV (American Media Group)
Brad Smith N. America Small business tech, accounting (Intuit)
Gary Wilson N. America Digital Media (Disney)
Jerry Yang N. America Yahoo Co-Founder
20.2
12.2
16.3
11.3
15.1
13.8
17
13.8
17.7
18.8
19.2
19.7
17.7
20.2
18.8
21.3
15.3
18.6
15.9
18.5
8.7
10.3
8.1
9.7
5.5
6
4.7
5.7
Avg. User
Bing
Yahoo!
2-17 18-24 25-34 35-44 45-54 55-64 65+
Yahoo! audience skews older
Comcast. July 2010.
Display information in a meaningful way, and incorporate social media
Integrate web services using cleaner, more intuitive interface
Diversify revenue sources
Continue to invest in display advertising technology
Increase ad relevancy and profitability
2011 2012 2013
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
List of candidates
Search based on criteria
Hire new CEO
R&D improving platform
Development of platform
Beta test
National launch
Engage in negotiations w/ Alibaba
Implement changes to platform
Launch new cobranding campaign
Revenue
Cost
Profit
5,184
2,414
2,770
3,796
2,414
1,381
Key assumptions
1. R&D $200M annually 2. Platform development cost = $1.4B (Overture acquisition) 3. Search engine growth rate = industry average of 44%
1,992
2,414
(422)
Maintain leadership as premium display advertiser
Seeking a new search partner
Recreate Yahoo!’s search technology
Organizational unity
Premier digital media provider
Rekindled Asian relationships
How can Yahoo! refocus on its mission and vision?
Governance – How can leadership resolve managerial conflicts?
Strategy – How can Yahoo! realign its strategy with its
strengths?
Asia – How can Yahoo! maintain its
relationships in Asia?
High LowH
igh
Lo
w
Alibaba
Search
IntonowDisplay advertising
Personalized digital media and content
Primarily N.A. and China
None; revenues via advertising
Word of mouth
R&D for web interface; advertising platform
Google, Facebook, Microsoft
Yahoo!
Aged 25-55, valueefficiency and user-friendliness, not astech-savvy
Internet, smartphones, tablets
of Chinese population expected to adopt
ecommerce by 2013
of Chinese internet users seeking news
via internet
75% of us now want more interactive TV
Every day in the US, there are 2.4 billion conversations about brands
Heavy social networkers are:
65% more likely to buy clothes online40% more likely to buy books online20% more likely to purchase music downloads online
Source: Gartner
296.6
467.7
630.5
1105
2010 2011 2012 2015 (Projected)
Units
in m
illio
ns
1105
Source: Gartner
0
200
400
600
800
1000
1200
2010 2011 2012 2015 (Projected)
Units
in m
illio
ns
57.7%
34.8%
20.5%
YOY compound growth
Partnership with Alibaba• Benefits for Alibaba: Foray into North America• Benefits for Yahoo!: Ad revenue, Asian assets
From the Noun Project:
Agus Purwanto, Gregor Cresnar, Austin Condiff, Juan Pablo Bravo, icons.design, misirlou, Remy Medard, Fabio Mittini, Tugrul Peker, Gabriel Ardiles, Cheesefork, Madeleine Bennett, Arthur Shlain, Douglas Santos, TukTukDesign, inna belenkey, Garrett Knoll, Jason Grube, Musket, Rohith M S,