Days after news broke out that Yahoo’s board of directors fired its CEO Carol Bartz, the stocks started to climb fast-it’s a good sign of life at Yahoo. The ousting of Carol Bartz as CEO of Yahoo provides some confidence on Wall Street. With a fast and furious start, Yahoo’s board of directors have made a drastic, bold decision, a massive internal shakeup, in a move to rescue the company from verge of collapse and remake the face of Yahoo, they reached a decision- to oust Carol Bartz. They want a new CEO; someone that could run the company better. But will Yahoo get it right?
Yahoo is already racing against the clock; there is a breadth and breathlessness to these undertakings, a frenzy of strategy that will reshape the contours of Yahoo’s future. For Yahoo’s board the ousting of company’s CEO is not an easy task, it require courage, terrible knowledge and teamwork. It’s quite risky too, mind-boggling piece of action that could spell trouble or good fortune for the company. The move must be carefully planned; a bridge can be built in the wrong place, so they need to make it in the right way. These are long-term decision that could affect the company for years to come.
Yahoo had trouble regaining a strong footing in the US market, the company has seen a deep corrosion of its core business, and it’s still losing market share. To make matters worse, the boon in online market that Google and other competitors have enjoyed seems to have been cut directly from the company’s market share. This is a fatal scenario for a company like Yahoo-it’s a slow kill.
Wall Street had a number of fears here, the reality is that Yahoo, once considered by pundits and tech world as the crown jewel and web icon is actually on the verge of absolute disaster. The company is already in the penalty box. To remain competitive in the market, Yahoo needs to refocus on the search market, they need to sell off its products and web services and then vertically integrate them within its core business just like what Google really doing on its services. They need to reassess its resources and eliminate services that doesn’t complement on its core business. Yahoo has spent a lot of time maintaining services with a huge, financially unjustified overhead, and without clear vision or roadmap on the table.
All the while, its search market share continues to drop like rock. The company is in chaos, they seem to be everywhere at once, investing in some sort of web services that do little to enhance or improve its revenue. A good example of this is Flickr. The company has no idea what exactly they got on Flickr; they have one of the industry’s best photo-sharing site something that could compete with Facebook or any high-flier dot com company. Flickr has a lot of potential; they simply don’t know how to monetize it, they clearly have no innovation on works. Yahoo has no idea on how to integrate Flickr to its core business- online advertising.
What was very important here was to decide that key areas Yahoo needs to prioritize. For years and now, the online company has seemed to miss every major industry turn even as major rivals like Google and Facebook somehow anticipated just about everything. Yahoo simply has no high-tech big projects with big money on the table, they’re going nowhere.
Yahoo’s board of directors sees both the ousting of Carol Bartz and the possible merger with another web stalwart AOL as just the first steps in their prolonged road to recovery and war against increased competition in the web. Such move is a good start for the company. The next Yahoo CEO must get Yahoo to act with the coherence, laser focus and speed Yahoo’s investors and shareholders now demand. Yahoo’s situation is clearly unsustainable and unacceptable, they need to respond fast. In their rush to action, Yahoo’s board doesn’t mind leaving critics on the road side they don’t care what ever they say. For Yahoo officials they want a complete makeover. These have been a more urgent time to have a kind of leadership inside Yahoo who can cope with these mounting challenges. The next CEO need to drive the company to new heights and straight past the brutal competition in the web.
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http://netcrawl.blogspot.com/2011/09/can-yahoo-get-second-shot.html