SWOT, SPACE and QSPM Matrices for YAHOO! Inc.
Yahoo! Incorporated is a multinational internet corporation in the computer integrated system designs industry. Headquartered in Sunnyvale, California, the company was founded by Jerry Yang and David Filo in 1994 at a time they were students at Stanford University. Initially the search engine started as a hobby for the two founders and it was referred to as 'Jerry and Yang's guide to the world wide web', after which the name was changed to Yahoo!, an abbreviation for 'Yet another Hierarchical Officious Oracle' (Yahoo! Inc., 2015). The company provides online properties and services to users and affiliates, and its major income generating activities are display and search advertising.
The company's products include: communication, search, digital magazines, and video. In communication, the main products are Yahoo Messenger, Yahoo Mail and Yahoo Groups, while search is made up of Yahoo Answers and Yahoo Search, both of which help consumers discover new information, share knowledge and navigate the internet (Yahoo! Inc., 2015). Video includes Yahoo Smart TV and Yahoo Screen, while My Yahoo, Yahoo Weather, and Yahoo Sports are some of the digital magazines. Yahoo! Inc. also operates Tumblr, which offers mobile applications and web service; and Flickr, used for sharing and storing photos. The company's major competitors are Microsoft, Google, AOL, and Double Click Ad Exchange - and as of 2014, it reported a net income of $1,253,070,00 (in the last quarter of 2014), with an earnings per share of 0.173 (Yahoo! Inc., 2015). This text evaluates the performance of Yahoo! Inc. using three comprehensive matrices: the SWOT, SPACE and QSPM matrices.
The SWOT Analysis
The SWOT analysis evaluates a company's internal business environment highlighted by its strengths and weaknesses, as well as its external environment, which is revealed by the opportunities in can exploit in the market and the threats that can affect its performance negatively (Bohm, 2009).
The SWOT Matrix for Yahoo! Inc. is as follows:
Strengths
S1)It is the second largest internet brand in the world
S2) Revenues amounting to 1.2 billion in 2014
S3) Huge revenues from marketing
S4)Has many products to offer
S5) Has offices in more than 20 countries
S6) Has partnerships with NSL, Visa and MLB
Weaknesses
W1) Lower revenues than competitors
W2)Stock price is falling
W3)Huge declines in advertising revenues
W4)Outdone in search results by Google
W5)Yearly Declines of Yahoo! Image search
Opportunities
This is particularly because it has more products, which enables it to get more revenues, establish strong partnerships and explore new territories. However, the revenues have been declining and it needs to emphasize on its strengths to be able to seize new opportunities and to deal with the imminent threats.
The SPACE Matrix
The Strategic Position and Action Evaluation (SPACE) matrix is used to evaluate different variables, which are given a score according to their importance in a…
