Yahoo! business model is to perform value creation activities to maximum its long run profitability in the internet advertising industry. Yahoo! first started as a simple directory. And today, it’s a global internet communication, commerce, and media company that serve 237 million individual users monthly. Because of the huge number of users now are using Yahoo! as a first look up website, its advertising revenue become a lot. To have a competitive advantage and get maximum profitability, Yahoo! decided to pursue vertical integration strategy. The benefit of vertical integration is to increase the quality of their products. Yahoo’s market segmentation is extremely high. Different products is offeres to each market segment. -wat companies are needed to serve these cus group Hence, Yahoo! have competitive advantage to its competitors. Yahoo! organizes all of it’s around products, and services under one root. Also, by dividing its services into group, Yahoo! can easy to identify what it needs to serve its customers. Under its root, users can find Yahoo!’s properties and services in one of six vertical areas
• Listings Properties, jobs, Auto, and Real-Estate
• Finance, Information, media (Music-Launch, Yahoo! Movies, Yahoo! Games, Yahoo! TV)
• Electronic Commerce (Yahoo! Shopping, Yahoo! Auctions, Yahoo! Warehouse and Yahoo! Travel)
• Broadcast Communications, groups, personal Mail, Messenger, Personals, Chat,
GeoCities, Groups, and Greetings services.
• Enterprise/Corporate Solutions
Yahoo! made a lot of acquisitions to increase its products and services quality as well as growth of corporations worldwide. In 1998, Yahoo! acquired internet shopping portal viaweb and direct marketing company Yoyodyne Entertainment to create a new reta ...