Question
Discuss and Evaluate the Quantitative Strategic Planning Matrix (QPSM) of YAHOO refer to the table below: KEY INTERNAL FACTORS WEIGTH Acquire innovative technology/internet related businesses.
Discuss and Evaluate the Quantitative Strategic Planning Matrix (QPSM) of YAHOO refer to the table below:
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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Marketing The Core
Authors: Roger Kerin
8th Edition
1260483517, 9781260483512
