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Yahoo Case Study Stanford

Case 30: Yahoo! Inc. 2Organization Profile & Case Summary Technology is a fundamental human adaptation to which economic markets and consumer behavior foreshadow whether there will be divergence, or convergence, in consumer product preferences. It has been placed as a powerful force that can bring worlds together by flattening them, or creating a competition in the certain markets. The rate of information transfer through large network such as Yahoo!, could have erased the borders and create new market capacity. However the company took an opposite turn; which resulted in information, but not experience and talent; therefore, leading a world astray from converging possibilities. Over its journey of almost 17 years, Yahoo! Inc., has become the world’s largest online network integrated service provider with users exceeding 500 million in numbers worldwide. Global awareness among twenty markets and regions, Yahoo! Is known for its search engine and host of other services like finance, e-mail, advertising, and social media. A company on a global scale must consider the powerful force that drives the world to cultural commonness. This force, was started as a personal website directory by two doctorate candidates at Stanford University, named David Filo And Jerry Yang. Filo and Yang had a visionof prospering revenue from their web directory by allowing companies to advertise their products on their online directory. This innovative idea caught attention by many investors because of its product preference migrated from its origins to throughout the global arena. The popularity of the product instantly grew through technological mediums that extend growth of new markets in different territories across the globe. Once the recognition grew, Yahoo! gained

CASE STUDY : YAHOO ! INC. Introduction Yahoo! began as a student hobby and evolved into a global brand that has changed the way people communicate with each other, how they find and access information, and how they purchase things (The History of Yahoo!, 2012). In 1994, David Filo and Jerry Yang, PH.D candidates in Electrical Engineering at Stanford University started a website named “Jerry’s Guide to the World Wide Web”. This Guide became a way to keep track of their personal interests on the Internet. Before long they were spending more time on their home-brewed lists of favorite links than on their Ph.D. articles. Eventually, Jerry and David's lists became too long and unwieldy, and they broke them out into categories. When the categories became too full, they developed subcategories . .. and the core concept behind Yahoo! was born (The History of Yahoo!, 2012). The name Yahoo! is an acronym for “Yet Another Hierarchical Officious Oracle,” but David and Jerry insisted the name was chosen because they loved its definition: "rude, unsophisticated, uncouth” (Gulliver’s Travels, 2012) in Gulliver’s Travels. David and Jerry found they were not the only ones that needed a single place to find useful information from the website. At the same time, other students at Stanford University used the website. Word spread quickly and Yahoo! became a closely-knit Internet community. Yahoo! celebrated its first million-hit day in the fall of 1994, translating to almost 100 thousand different visitors (The History of Yahoo!, 2012). Their website developed so fast that David and Jerry realized there were some potential business opportunities around them. In March 1995, David and Jerry met with and incorporated with some investors in Silicon Valley. In April 1995, David and Jerry came across Sequoia Capital, the well-regarded firm whose most successful investments included Apple Computer, Atari, Oracle and Cisco Systems. They agreed to fund Yahoo! in April 1995 with an initial