Yahoo and its comeback
October 17, 2010 Leave a comment
Yahoo is good at generating Content. In 90s it was a very good core competence to have but after the onset of social media (esp. blogs), generating content has become a commodity. Anyone can generate content…and thanks to Google and Twitter, this content can be searched/distributed by anyone across the globe. People do not have to go to big brands (like Yahoo) to find good content.
In this context, Yahoo’s core competence became irrelevant. It tried Search..then it tried Digg style ranking, and now a days it is trying to be social (with yahoo connect). My thoughts: For a company that is as big as Yahoo..these strategies will not be helpful. Remember…you can not beat them at their own games. What Yahoo needs to do is…play its own game and let people compete with it on its own turf. In business language: Develop a new core competence.
There is a general notion that “social/connection” is important. No doubt it is…but it is only as important as the content that is shared between the connections. So, in a view, “content” is more important than the “social”. Yahoo has a lot of content (its strength). What it needs to do is to find out a way so that the content can “connect” with the user. A lot of pattern learning, profile learning, and behavior analysis will be required for this. . To cite an example: Let us imagine a scenario where you go to the Yahoo site..and find stories breaking out (just like Twitter) that are very relevant to you. Will you not go to Yahoo again and again to see that? I will. And the best thing is that Yahoo has the resources to do that (another strength)
Yahoo, are you listening? I will love you for ever, if you are able to do that.