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Sweet Spot Case Study

Sweet Spot Case Study. Rahul Gupta 9/11/03 CS453 E-commerce Technologies. Background. Two founders from Stanford: David Filo and Jerry Yang [4] Started in February 1994 in a campus trailer [7] Incorporated in March 1995 [6]

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Sweet Spot Case Study

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  1. Sweet Spot Case Study Rahul Gupta 9/11/03 CS453 E-commerce Technologies

  2. Background • Two founders from Stanford: David Filo and Jerry Yang [4] • Started in February 1994 in a campus trailer [7] • Incorporated in March 1995 [6] • In April 1995 funded by Sequoia Capital with an initial investment of about $2 million [7] • Went public in April 1996 [6] • Corporate Headquarters in Sunnyvale, CA [6] • Director and former-CEO of Yahoo, Timothy Koogle, is a Wahoo! [6]

  3. Why was it started? • Started as a way to keep track of their personal interests on the Internet [7] • Evolved into a complete online navigational guide [7] • Initially called “Jerry's Guide to the World Wide Web” [7] • Yahoo! acronym for “Yet Another Hierarchical Officious Oracle” [7] • Definition of Yahoo accepted by creators: rude, unsophisticated, uncouth [7]

  4. What’re the consumer functions? • Provides internet content from over 2000 top-of-the-industry providers in areas such as news, travel, sports, games, and weather. [6] • Provides commerce services such as shopping, auctions, finance, and classifieds. [6] • Provides communications services such as Mail, Messenger, Photos, Greetings, and Clubs. [6] • Yahoo! Everywhere provides consumers with mobile access to information via devices including wireless phones, two-way pagers and PDAs. [6]

  5. What’re the enterprise functions? • Marketing: Enables agencies and clients to find and connect to audiences through Fusion Marketing. [6] • Business and Enterprise Services: Integration of commerce, communications and media into web portal and similar services via Corporate Yahoo!, Yahoo! Broadcast Services, Yahoo! Small Business. [6] • Premium Services: Yahoo! Store, Business Express, Yahoo! Yellow Pages, Yahoo! Auctions, Yahoo! Bill Pay, and extra mail storage. [6]

  6. Who are the customers? • More than 237 million unique worldwide users in 25 countries and 13 languages (December 2001). [4] • 93 million active registered users [5] • More than 1.5 billion page views a day [5]

  7. How does Yahoo! compare? Taken from reference [9]

  8. How it compares cont’d Taken from reference [9]

  9. Awards Taken from reference [9]

  10. Why is Yahoo special? Taken from reference [9]

  11. Front-end of main portal Taken from reference [1]

  12. Front-end of Yahoo! Search Taken from reference [2]

  13. Front-end of Yahoo! Auctions Taken from reference [3]

  14. Back-end • Yahoo at first used a proprietary server-side page language written in C/C++ [5] • Transitioned to PHP in 2002 [5] • 4500+ servers in 16 co-locations [5] • USA: Sunnyvale, Santa Clara, San Diego, Washington DC, Dallas • Intl: England, Central America, South America, Taiwan, Hong Kong, Singapore, China, Australia, India, Japan, Korea

  15. Acquisitions Yahoo! has acquired twenty companies since its start. [6] Taken from reference [6]

  16. Financial information • The opening price of Yahoo!'s stock on the day of the IPO was $13.00 per share and the closing price on that day was $33.00 per share. [6] Taken from reference [10]

  17. How’s Yahoo! doing now? • For Fiscal Year 2002 [8]: • Revenue per average Unique User per month: $0.40 • Net Revenues Total: $953.1 million • Net income (loss): $42.8 million • Net income (loss) per share: Diluted: $0.07 • Free Cash Flow: $221.0 million

  18. Spectacular successes • According Nielsen/NetRatings 8/2002, Yahoo! is the World’s most trafficked Internet destination. [5] • First all-encompassing portal/guide to the Internet [4] • Takes number 1 spot on corporate desktops, with a 70%+ reach in the U.S. workplace[4]

  19. Spectacular successes cont’d Taken from reference [9]

  20. My Thoughts on Yahoo! • I believe that Yahoo! is going to continue to be very successful due to it’s extremely wide breadth. It turned a healthy profit early in its history and each year that profit has increased. I predict that it will continue this same trend in the coming years. • Yahoo! Search is a great feature designed to rival the simplicity of Google, but it might not be enough to recapture the customer-base that Google has earned. I personally use Google as my main search engine because it gets me what I want quickly and accurately. • Even with so many formidable competitors I believe that overall Yahoo! is still unique due to the fact that it seems to have everything that most people use on a day to day basis such as search, auctions, sports coverage, news, directories, music, movie reviews, and email.

  21. References • Yahoo!: http://www.yahoo.com • Yahoo! Search: http://search.yahoo.com/ • Yahoo! Auctions: http://auctions.shopping.yahoo.com/ • Company Overview: http://docs.yahoo.com/info/misc/overview.html • Making the Case for PHP at Yahoo!:http://public.yahoo.com/~radwin/talks/yahoo-phpcon2002.htm • FAQ: http://docs.yahoo.com/info/pr/faq.html

  22. References Cont’d • The History of Yahoo! - How It All Started... : http://docs.yahoo.com/info/misc/history.html • Supplementary Financial Information: http://docs.yahoo.com/info/investor/metrics.html • Yahoo! Facts & Figures: http://solutions.yahoo.com/advertiser_center/research/factsandfigures.html • Yahoo! Investor Information: http://yhoo.client.shareholder.com/ • TechWeb: Yahoo Turns Reputation Into Acquisitions: http://www.techweb.com/wire/story/TWB19990401S0016

  23. References Cont’d • Yahoo! Introduces New Yahoo! Search: http://yhoo.client.shareholder.com/ReleaseDetail.cfm?&ReleaseID=105839 • Yahoo! Auctions Introduces Offline Seller's Management Tool: http://docs.yahoo.com/docs/pr/release709.html • Press Release: Yahoo! No. 1 Online Music Destination in the U.S. According to Nielsen/Netratings' Marketview Report: http://docs.yahoo.com/docs/pr/release990.html • Press Release: Yahoo! No. 1 Search Destination in the U.S. According to Nielsen/Netratings' March Marketview Report : http://docs.yahoo.com/docs/pr/release983.html • Press Release: New Yahoo! Shopping Network Ranked the No. 2 Online Shopping Destination by Nielsen/Netratings: http://docs.yahoo.com/docs/pr/release904.html

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