1. Competition is generally considered to be a source of growth for companies as well as for the general economy. Studies confirm that competition leads to more efficient resource use. Yet, competitive forces also result in firms being driven out of the market. Moreover, firms compete through innovations and introducing new products to the market. Some of these products will be successful and others will end up failures. Why is competition important for efficient use of resources? What can Yahoo! do to compete effectively? How may Yahoo! avoid business failure competitions induce? What determines whether the new products are successful or failures? How important is innovation and product differentiation as the source of growth for Yahoo! ?