1. Discuss the SWOT-TOWS Matrix of Yahoo

	Strength	Weaknesses
	1. Yahoo revenues from 2007 to 2008 increased by 3.4 percent to $7.2 billion. 2. Yahoo is the second leading global Internet brand and one of the most trafficked Internet destinations worldwide as of 2008 data. 3. Yahoo! generates revenues through its Search offerings including Yahoo! Search, Yahoo! Local, Yahoo! Yellow Pages and Yahoo! Maps and for display advertising revenues includes Yahoo! Mail, Zimbra Mail, and Yahoo! Messenger. 4. Yahoo!'s full-year 2008 revenues totaled a record $23.4 billion, exceeding 2007's performance, itself the former record of $21.2 billion, by $2.2 billion or 10.6 percent. 5. Yahoo! generates revenues by providing marketing services to advertisers across hundreds of Web sites and also charging fees for a range of premium services. 6. Yahoo has offices in more than 25 countries, provinces or territories. 7. For the second quarter of 2009 cost cutting allowed Yahoo to post 7% increase in profit up to $141.4 million	1. The net income dropped by 35.7 percent to $424 million 2. Posted a 78 percent first quarter 2009 profit decline and reacted by eliminating another 675 jobs, or 5 percent of its workforce on top of 2,500 jobs cut in 2008. 3. Yahoo's online advertising revenue fell 13 percent in the second quarter of 2009 compared to the prior year. 4. In July 2009, Yahoo closed its third video property and plans to close twenty video services, including its social network site Yahoo! 360 and its Web hosting service GeoCities 5. Yahoo lost 1 percent in rich media revenue, 1 percent in sponsorship, and 2 percent in classified ads in 2008 as compared to 2007. 6. During 2008, Google had 72 percent of Internet traffic while Yahoo! Only possessed 17 percent followed by MSN at 6 percent and IACI at 4 percent.
Opportunities	SO Strategies	WO Strategies
1. According to technology research firm IDC, there were 1.1 billion Internet users around the world and 211 million in the United States as of the end of 2006 (latest data available). 2. Internet advertising revenues in the United States remain strong, topping $23 billion, according to the 2008 Internet Advertising Revenue Report, released by the Interactive Advertising Bureau and PricewaterhouseCoopers LLP (PwC). 3. Innovativeness in technology is the driving force in Internet-based businesses 4. Many businesses overseas are finding advertising on Internet less expensive and more responsive 5. Countries such as China and India have stronger economic status and accordingly, the companies are able to spend more advertising dollars via Internet 6.Federal Communication Commission (FCC) adopted flexible access rules for users and wireless resellers in conjunction with the agency's early 2008 wireless spectrum auction. 7. As broadband prices fall, ISPs are pursuing new business strategies, such as bundling Internet access with voice and video services.	Improve and increase advertising spending and service marketing to increase product position among the internet users globally (O1, O3, O4, S1, S2, S3, S5, S6) Implement a vertical or horizontal integration (forward or backward) of a company that has global presence (S2, S3, S5, O1, O2, O3, O4, O5)	Acquire innovative technology/internet related businesses. (W1, W3, W5, O1, O2, O3, O4, O7) Focus marketing development in USA (O1, O2, O3, O4, O6, W1, W2, W3)
	ST Strategies	WT Strategies
1. In 2009, a number of Internet content and advertising companies including Bankrate Inc., Knot Inc., ValueClick Inc., WebMD Health Corp., and Yahoo! Inc.) Reported disappointing financial results and lowered their forward financial outlooks. 2. Google's pursuit of mobile Internet opportunities has made it one of the main application providers for Apple Inc.'s iPhone and has successfully pushed for more open standards in the mobile space, which will eventually allow users to more easily choose the carriers and handsets they want. 3. As broadband prices fall, ISPs are pursuing new business strategies, such as bundling Internet access with voice and video services. 4. The industry, due to its low barrier entry?technical and regulatory?makes the projection of its business viability for existing companies difficult. 5. Changes in legislative requirements concerning technology sharing, patent rights, and information security, future expenses and profitability of the companies operating within this industry are harder to predict. 6. Although internet related businesses have perhaps held up better than non-digital counterparts, they have still suffered from macroeconomics malaise.	Create additional bundling partnership for sound and video streaming. (T3, S5)	Improve Innovation to protect the company's technology, patent rights and information technology. (W3, W4, T5)

2. Discuss and Evaluate the quantitative strategic planning matrix of Yahoo

KEY INTERNAL FACTORS	WEIGTH	Acquire innovative technology/internet related businesses.	Improve and increase advertising spending and service marketing
Strength (Internal Factor)
		AS	TAS	AS	TAS
Yahoo revenues from 2007 to 2008 increased by 3.4 percent to $7.2 billion	0.1	1	0.1	3	0.3
Yahoois the second leading global Internet brand and one of the most trafficked Internet destinations worldwide as of 2008	0.2	4	0.8	3	0.6
Yahoo! generates revenues through its Search offerings including Yahoo! Search, Yahoo! Local, Yahoo! Yellow Pages and Yahoo! Maps and for display advertising revenues includes Yahoo! Mail, Zimbra Mail, and Yahoo! Messenger.	0.07	3	0.21	2	0.14
Yahoo!'s full-year 2008 revenues totaled a record $23.4 billion, exceeding 2007's performance, itself the former record of $21.2 billion, by $2.2 billion or 10.6 percent.	0.08	4	0.32	3	0.24
Yahoo! generates revenues by providing marketing services to advertisers across hundreds of Web sites and alsocharging fees for a range of premium services.	0.07	2	0.14	4	0.28
Yahoo has offices in more than 25 countries, provinces or territories.	0.06	1	0.06	4	0.24
For the second quarter of 2009 cost cutting allowed Yahoo to post 7% increase in profit up to $141.4 million	0.08	-		-
Subtotal	1.63		1.8
Weaknesses
The net income dropped by 35.7 percent to $424 million	0.07	3	0.21	1	0.07
Posted a 78 percent first quarter 2009 profit decline and reacted by eliminating another 675 jobs, or 5 percent of its workforce on top of 2,500 jobs cut in 2008.	0.09	2	0.18	4	0.36
Yahoo's online advertising revenue fell 13 percent in the second quarter of 2009 compared to the prior year.	0.03	3	0.09	4	0.12
In July 2009, Yahoo closed its third video property and plans to close twenty video services, including its social network site Yahoo! 360 and its Web hosting service GeoCities	0.05	-		-
Yahoo lost 1 percent in rich media revenue, 1 percent in sponsorship, and 2 percent in classified ads in 2008 as compared to 2007.	0.04	3	0.12	4	0.16
During 2008, Google had 72 percent of Internet traffic while Yahoo! Only possessed 17 percent followed by MSN at 6 percent and IACI at 4 percent.	0.06	3	0.18	4	0.24
Subtotal	0.78		0.95
Opportunities (External Factor)
According to technology research firm IDC, there were 1.1 billion Internet users around the world and 211 million in the United States as of the end of 2006 (latest data available).	0.1	4	0.4	2	0.2
Internet advertising revenues in the United States remain strong, topping $23 billion, according to the 2008 Internet Advertising Revenue Report, released by the Interactive Advertising Bureau and PricewaterhouseCoopers LLP (PwC).	0.1	3	0.3	4	0.4
Innovativeness in technology is the driving force in Internet-based businesses	0.09	3	0.27	2	0.18
Many businesses overseas are finding advertising on Internet less expensive and more responsive	0.08

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