Yahoo! has recently indicated that it is in search of a strategic partner. Reading between the lines, we can mention that Yahoo! is on the verge of sell off. The blog talks about the possible reasons for Yahoo!’s dire situation.
Once Yahoo! was synonymous with emailing and web surfing. People extensively used Yahoo! to stay updated and connected with friends. Then came Google with a focus on two core aspects: An innovative approach for facilitating users and free stuff for attracting people across the world. Yahoo! got drastically failed in compete with Google and even Bing.
Yahoo! rejected Microsoft’s buyout offer in the year 2008 while facing serious financial crisis. Then, it made an agreement with Microsoft to promote the brand in an attempt to increase the revenue. Following are some of the reasons that cause a doom-laden situation for Yahoo!:
Lack of insight
As a search engine, Yahoo! never attempted to cope with changing and challenging requirements. Its conservative approach created a feeling of dissatisfaction among users, and gradually, people switched from Yahoo to Bing and Google. Today, Yahoo! is on number three position with less than 12.4 percent of the search engine market share because of lack of insight and innovative touch.
No free stuff
Google offers many of its premium services along with a whopping 15 GB storage for free. Yahoo! could never integrate its stuff in such a way as Google does for making it more productive. Also, Google’s algorithm and ad tools are much more advanced as compared to Yahoo! that gives an edge to the Mountain View-based tech giant.
Complexity is a big enemy of any technology products or services. Though Yahoo! also offers many services, its complex interface makes it unsolicited. Today, less than 10 percent of netizens use Yahoo! as their preferred search engine and email agent because of complexity. Even Bing gradually improves its searching experience while addressing users’ requirements.
Lack of marketing tactics
In addition to these aspects, Yahoo! completely failed in implementing technological advancements to deal effectively with users’ ever-changing surfing requirements. It remains conservative in promoting services. Altogether, the ex-tech giant Yahoo! got failed to entice users on many fronts, and this failure results in the possible selloff.
Moral of the Yahoo! failure story is: All the tech companies always need to integrate the latest tech advances for improving services. Try to come forward with an innovative approach and make it mainstream through reducing complexity. Failure in reading users’ mind can lead these companies to a dismal growth first and a selloff in the later stage.