Alternative courses of action ACACIA : To grow its customer base and create new products and services for expansion Advantage: -increase profit -meet the needs of customers -improve competition capability -rising employment Disadvantage: -high expense growth rate -needs expertise of technical staffs -high maintenance COCA: To redirect employees – no employees will be laid off – improve work efficiency -spend more time on redirecting COCA: To improve its search engine, easy for all users use -customers’ royalty -value added products -high expenses -need technical staffs 10.
Decision Matrix 11. Recommendation ACACIA : To create new products and services for expansion It is clear that the Yahoo Corporation has faced some challenges in expanding its marketing share. It is suggested that the corporation should continue to grow its customer base and create new products and services. The corporation can grow its customer base and create new products and services by successfully capturing the international market. In addition, Yahoo can enlarge its target customer statistics by including customers outside the age group of 18-34 like people of above 55 years .
Yahoo has to distinguish itself from the rest of its competitors in the Internet market in order to successfully accomplish these objectives. Yahoo must ensure that internet access is available to its target market in order to strategically grow its customer base . If the target market does not have the meaner or ability to access services, Yahoo will not be successful. It is important for Yahoo Corporation to capture international customers during the exposure to the Internet. This can create a comfort-zone for its new users.
Yahoo should become familiar with the likes, sillies, habits and other characteristics of each niche of the international market. The company should use appropriate marketing channels to create the demand in international market. The marketing techniques like sales promotion, advertising, publicity, etc. Will work more effectively to capture international market . To become successful, it is important for the Yahoo Corporation to expand its target market. It is important that Yahoo tries to capture those who are its first-time Internet users.
Through partnerships with telecommunications providers and cable companies, Yahoo should work to become a primary part of a new Internet service package. Yahoo can successfully get new web users to begin their Internet use. The users use the internet because it allows them to communicate with their friends and family members who are separated geographically. People like the Internet because it allows them to find information and items that they can’t find elsewhere. With this demographic, travel, leisure and financial information tend to be popular (Ramsey & Imaginary, 2007).
Yahoo should promote its different offerings n publications and media to achieve the best reach and to focus on the particular areas. Yahoo should publicize itself as a source of health information as well as a site that provides travel information for those who plan for retirement. Yahoo should portray itself as a portal of information. To remain competitive, Yahoo should adopt and initiate new projects. The company should begin as a search engine and expand its offerings by including finance, personals and hot Jobs and other activities .
For example, Yahoo has realized that the potential users of Yahoo music consequently acquire a significant share of the online music industry. The ability to differentiate itself from its competitors is the main reason for the success of Yahoo. To promote new products, Yahoo is able to take advantage of its brand equity and its large user base. Yahoo should not limit itself to fixed media sites. Yahoo Corporation should also expand its Internet-based market to compete against traditional media. 12. Action Plan 13. Conclusion Thus, it is concluded that in the dynamic Internet market, Yahoo is a strong and relatively established company.
Its core competence includes focus on young adult seers, regularly improving fixed web sites, driving advertising revenue and encouraging employees to be practical. All this points have been a formula for its success. Yahoo must apply aggressive strategies, provide more projects and maintain healthy financial statement to remain competitive. It is important that Yahoo carefully review all these strategies and examine the timing of its initiatives. The company can achieve its target and growth by hiring competent managers and experienced consultants as well as by remaining focused on its core competencies.
