Competitive Strategies for Yahoo
Running head: COMPETITIVE STRATEGIES FOR YAHOO! ... Competitive Strategies for Yahoo! ... Abstract Yahoo! like any other company must develop sustainable competitive advantage over its competitors to address the competitive forces identified by Michael Porter in order to succeed in its highly competitive industry. Yahoo! ... Yahoo! ... However, Yahoo! doesn’t have sustainable competitive advantage yet. ... Yahoo! ... Competitive Strategies for Yahoo! ... In order to succeed in today’s highly competitive and dynamic E-business environment, a company must have strategies that give the company sustainable competitive advantage over its competitors. Porter (1980) identified five competitive forces that affect the intensity of competition and profitability of an industry. The five competitive forces are (a) bargaining power of suppliers, (b) bargaining power of buyers, (c) threat of new entrants, (d) threat of substitutes, and (e) competitive rivalry within the industry (p. ... Porter also stated that the goal of competitive strategy for a company in an industry is to find a position in the industry where the company can best defend itself against these competitive forces or can influence them in its favor (p. ... Businesses must develop competitive strategies such as differentiation, cost leadership, innovation, growth, alliance, and other strategies to address the competitive forces they confront in the industry (O’Brien, 2002, p. ... What are the current competitive strategies of Yahoo! facing the competitive forces? Does the company have sustainable competitive advantage over its competitors? Industry Analysis Yahoo! ... Yahoo! ... Yahoo! ... Yahoo! ... Yahoo! ... Yahoo! ... Broadband is also a highly competitive business among the rivals. ... However, both Microsoft and Yahoo! ... Niccolai also says Overture Services could become a competitor to some of its partnering portals, which include Yahoo! ... Yahoo! ... Bargaining Power of Suppliers Yahoo! ... While Yahoo! is fighting to regain ground lost to Google, Yahoo! ... Yahoo! and SBC Communications entered a partnership on their bundled DSL service called SBC Yahoo DSL in late 2002 (Hu, 2002). Yahoo! ... The bargaining power of suppliers for Yahoo! is relatively high because the services provided by the suppliers are important input to its business and there will be relatively high switching costs if Yahoo!