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Yahoo fails to keep up with Google and Facebook

September 21, 2011

David Beharall
David
After 11 years in professional football David retired in 2006 to set up CandidSky. He currently holds the position of Managing Director.

Yahoo

What went wrong?

Yahoo has been in the news for sacking its chief executive Carol A. Bartz. According to news reports she was asked to leave the company for failing to develop new social networking tools, video apps and mobile apps that web users now prefer to use.

Yahoo is a website that specialises in publishing professional content. The Internet company has found it a struggle to move into the digital world that has been taken over by mobile phones and websites where users create the content.

From paper to online

Yahoo is not the only Internet company to struggle to make the transition into the digital world, AOL has faced similar problems too. Both successfully took on the big shift from paper to online but they have since failed to follow Internet users and advertisers to mobile phone screens and social network sites.

Google and Facebook however have been hugely successful, satisfying the demand for information. They haven’t attracted users and advertisers by producing content. Instead both have created mobile and social networking services, which has been much more valuable.

The new digital world

I simply think Yahoo started to struggle to evolve when the rest of the Internet moved into the new digital world.

Some of its features are still used by millions including its homepage, email service and entertainment sites. But advertisers are after something more profitable and Internet companies like Google and Facebook offer services that give them more results.

Consumers’ habits are changing and advertisers are interested in information that Facebook has about user’s friends or what Google has about user’s search queries.

It will be interesting to see what happens with Yahoo now Bartz has gone. Will Microsoft be interested in buying Yahoo again after Bartz turned down their offer three years ago? Or could AOL and Yahoo join forces to strengthen the two internet companies, which has been suggested by the press? One thing is for certain, the news has proven it’s all about the digital world right now.

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