Yahoo Case Study


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Yahoo Case Study Analysis



Type of Industry

Web service provider


Sunnyvale, California, United States


US$5.17 billion

Area Served


Number of Stores



msn, gmail, hotmail, outlook


Product diversification    

Target Group

People of all ages


Web services


Yahoo Case Study Introduction

The American web services provider giant, Yahoo, has been able to sustain its business profitability over the years. It is a Company that has spread its business globally in an effective and efficient way. Headquartered in Sunnyvale, California, United States, Yahoo has become an embodiment of utter business success. Being one of the pioneers of early Internet era, Yahoo has been able to sustain its global market reputation in a thorough and effective manner. The Yahoo case study analysis should be conducted in order to ascertain how the Company has been able to sustain its profitability and business growth. A SWOT and PESTLE analysis will strengthen the Yahoo case study analysis.

Yahoo SWOT Analysis


A successful track record of developing innovative products should be considered among the primary strengths of Yahoo. The Yahoo case study analysis reveals that a strong free cash flow has also added to the Company’s business strength in a thorough manner. The Yahoo case study analysis has also revealed that the Company has been highly successful in implementing Go To Market strategies in the course of developing its products. This has also strengthened the Company’s market image and reputation. Moreover, it has been observed that effective automation of different internal activities of Yahoo has helped the Company in operating smoothly in different regions worldwide. A strong distribution network has also made Yahoo capable of witnessing a strong rise in its business’ profitability on a global basis. Besides, it has been observed that good returns on capital expenditure have also allowed Yahoo to sustain its profitability over the years.


One of the major weaknesses of Starbucks is that, the Company is not very good at forecasting the product demand. This has resulted in loss of businesses on many occasions in the past. The Yahoo case study analysis reveals that Yahoo’s confinement and limitation in terms of expanding into adjacent product segments has also limited the chances for Yahoo to expand its business on a global basis in emerging economies. The Yahoo case study analysis has also revealed that the days inventory of Yahoo is quite high compared to its competitors and this is yet another major weakness of Yahoo. Besides, the marketing strategies implemented by Yahoo are not up to the mark, and this is a primary weakness of Yahoo.


Despite the weaknesses, Yahoo has the opportunity to enhance its core competencies by integrating innovation in its business operations. More opportunities are there to make the business’ operations more automated. This will provide Yahoo with the chance to enhance the efficacy of its operations on a global basis. The Yahoo case study analysis reveals that the Company has the opportunity to develop its marketing strategies by comparing and contrasting the same with the strategies implemented by the competitors. It has also been observed that Yahoo has the opportunity to invest in adjacent product segments owing to the fact that the Company has a steady free cash flow. Moreover, the Company has the opportunity to invest more in the process of improving its existing sales channels and developing newer ones.


A tough competition from the rivals is the primary threat to the business of Yahoo. The Yahoo case study analysis reveals that the global shortage of skilled labor force is yet another threat to Yahoo’s global business. Besides, it has been observed that the new technologies developed by the competitors are threats to the existing business of Yahoo. Moreover, it has been noticed that rising pay levels can also pose serious threats to Yahoo’s business in the long run.

Yahoo PESTLE Analysis

Political Environment

Political environment plays a decisive role in determining the future of any business and in this respect, Yahoo is no exception. The Yahoo case study analysis reveals that a steady political environment in the United States has helped Yahoo to expand its domestic business exponentially. Moreover, the willingness of more governments worldwide to promote the Internet technology through the implementation of policies has also helped Yahoo in sustaining its market hold on a global basis. Moreover, it has been observed that protective cyber policies implemented by different governments of different countries of operation have allowed Yahoo to operate smoothly worldwide.

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Economic Environment

Economic environment plays a crucial role in determining the future success or failure of a business. This holds true for Yahoo too. The Yahoo case study analysis reveals that high GDP rates of different countries have allowed the populaces to gain more access to the Internet technology and this has helped Yahoo to cater to the needs of its existing and new customers. This has again contributed to the business growth and expansion of Yahoo. Moreover, it has been observed that, lesser interference of the United States government in free trading practices has also allowed Yahoo to strengthen the basis of its business and improve its domestic business in a thorough and efficient way.

Social/Socio-Cultural Environment

The rising trend in societies across the globe to be more communicative in terms of interacting virtually has helped Yahoo to penetrate into new markets and expand its business exponentially. The Yahoo case study analysis has revealed that Yahoo has been able to reach out to newer customer segments due to the fact that many developing economies have demonstrated the interests of the populace to indulge extensively in the use of social media for myriads of purposes. Besides, social demands for enhancing the Internet technology have also compelled Yahoo to integrate innovation in its business processes.

Technological Environment

Being a technology-oriented Company, it has become essential for Yahoo to reap the benefits of emerging technologies through the process of integrating the same in its business processes and operations. The advancements in the field of technology have provided opportunities to Yahoo to enhance its business and its web-based products. For instance, the Yahoo case study analysis has revealed that, technologies like machine learning have helped Yahoo immensely in redesigning its products efficiently.

Legal Environment

The presence of stringent cyber laws in majority of countries of operation has helped Yahoo to conduct its business efficiently and with compliance. It has to be noted that, being a key player in the social networking industry, Yahoo has the compulsion to act responsibly, and this compulsion has helped Yahoo to comply with the laws of the lands that are meant for securing and protecting the privacies of the uses of Yahoo’s products.

Environmental Factors

Yahoo has earned its reputation as an environment-friendly business entity owing to the fact that the emergence of environmentalist policies and the rise in the efforts of protecting the environment on a global basis have compelled Yahoo and its competitors to remain carbon neutral and energy efficient.

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