e business and e-commerce

Yellow Pages In the fall of 2010, Yellow Pages Group Co, announced the launch of a new online advertising and marketing company to be known as Mediative. This move was an attempt by the Montreal-based company to address a major weakness in its business strategy. Yellow Pages is known for the print directories that have been the mainstay of its business model for decades But times have changed. Print advertising such as that offered through the Yellow Pages books is under pressure. Television is the most popular medium for advertisers. Print media such as newspapers and magazines are in second place. However, the web is slated to overtake print media as an advertising channel by 2012 or soon thereafter Also, more than 90 percent of Yellow Pages revenues come from local ads, but with the global reach of the Web, national advertisers are not drawn to local advertising such as that offered by Yellow Pages. Instead, they are seeking national and international coverage ads. Mediative will advertise on well-known websites and search engine websites such as Google and Bing, as well as Facebook and other social networking sites. Mediative will provide a service that will enable companies and agencies to bid on ads and track what they spend and how much activity results from their advertising expenditures. Sources: S. Krashinsky, "Yellow Pages Launches Unit to Expand Web Business, "Globe and Mail, October 26, 2010, www.ctv.calgeneric/ generated/static/business/article1772320.html, S. Houpt, "Web Ad May Surpass Print, Ending an Era, "Globe and Mail, December 7, 2010. Yellow Pages Group 360 yellowpages.ca/en Questions 12 1. What is the major weakness that Yellow Pages is attempting to address? 12 2. Are there any advantages to local ads that are the company's strength? 14 3. What additional improvements can Yellow Pages make in its strategy