Almost twenty years ago in 1994, talk show hosts of the Today show were filmed stumbling over their words attempting to define a new technology called “the internet” (Pegoraro, 2011). At the same time, Jerry Yang and David Filo, two Stanford University graduates who had embraced this new technology, were working to develop a framework to organize the plethora of websites they had discovered on the internet (“The history,” 2005). This exceptionally organized list of websites formed the concept behind Yahoo, which soon became one of the most highly visited sites on the internet (Indu & Gupta, 2007). Yahoo did very well in the first four years, but before long it was clear that the company was in desperate need of a focused strategy. The decline in Yahoo’s performance was attributed to many factors including the company’s inability to produce sufficient revenues from “search-related advertising,” failure to fully integrate new acquisitions, and a complicated organizational structure (Indu & Gupta, 2007, p. 1). The company took these factors into serious consideration to resume the evolution of the company. Today, Yahoo’s financial outlook is promising. In order for improvements to be made it was imperative for Yahoo to identify the main factors that were causing the company financial turmoil. Yahoo had success in their ability to drive internet users to the website. In fact, they had surpassed their competitor, Google, in 2006 when Yahoo brought in 120 million more monthly visitors (Indu & Gupta, 2007). Though Yahoo attracted more visitors, Google brought in significantly more money ($5.4 million) per million visitors (Indu & Gupta, 2007). It was apparent that Yahoo needed to develop a more effective advertising method to boost th... ... middle of paper ... ...om http://techcrunch.com/2008/01/17/yahoo-implements- openid-massive-win-for-the-project/ Grossman, B. (2006). Braun Out At Yahoo! Broadcasting & Cable, 136(49), 39. Holahan, C. (2006). Why Yahoo's Panama won't be enough. Businessweek Online, 9. Retrieved from EBSCOhost. Kim, R. (2007, June 18). Yahoo replaces CEO Semel with co-founder Yang. San Francisco Chronicle. Long, D. (2007, October 25). Can Yahoo remain on the road to recovery? New Media Age, 12. Retrieved from EBSCOhost. Pegoraro, R. (2011, January 31). 1994 'Today' show 'what is internet?' clip offers a reminder: We were all newbies once. The Washington Post. Retrieved January 22, 2012, from http://voices.washingtonpost.com/fasterforward/2011/01/1994_today_show_what_is_the _in.html The history of Yahoo. (2005). Yahoo Media Relations. Retrieved from http://docs.yahoo.com/info/misc/history.html
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Google success can be seen in its staggering revenue figures. Google announced $55 billion in total revenue for 2013, which is 189th on Forbes 500 list, the majority coming from advertising (Google Investor, 2014). On top of this their profits exceeded $15 billion. Despite a narrow revenue stream, Google’s broad product range is also a measure of their success. Part of the strategic developed of the company has been through diversification. This has been achieved through commitment to a policy of bold and aggressive acquisitions, currently they hold over 100 products in their portfolio. This gives them broad awareness, vast economies of scale and sustainability across their product-lifecycle and Boston matrix (Hooley et al 2008).
...as not only been reliable when it arises to offering a product of the highest and excellence, nonetheless is also continually developing, adjusting, but more meaningfully revolutionizing the industry. Also, what creates Google’s invention so matchless in assessment to its challengers is the attention that it offers to consumer requirements in order to offer a consistent and difficultly substituted the product rather than concentrating on exploiting its profit with each given chance which may cooperation the quality of its search consequence its product. Having examined the company’s internal and external environment it is obvious that Google earnings care and attentions even to the smallest detail to guarantee that it will be the leading company between many other online search engines and has been able to create loyal customers that are continually growing.
The Internet boom of the 1990’s gave rise to the popularity of America Online AOL and Time Warner saw themselves at a crossroads where old and new media would become one. The histories of both AOL and Time Warner are extensive and have not always been successful. Time Warner itself was created by two mega-mergers. The first merger was in 1989 between Time Inc., publisher of many magazines such as Time Magazine, and Warner Communications. Both companies have histories stretching as far back as 75 years or so. In 1996, this company merged with Turner Broadcasting, which brought CNN with its founder Ted Turner. These two mergers created a company ready to lead in any form of media. The company launched the HBO television network. Time Warner, headquartered in New York, had $27.3 billion in revenues in 1999 and a market value of $112.6 billion. On the other side of the merger there is new media giant AOL, today the biggest, richest, and most successful internet company in the world. It was founded in 1985 as Quantum Computer Services and by 1994, after changing its name, had a million subscribers. In its early years, it almost fell because of the problems associated with introducing unlimited access for a fixed monthly fee. As its number of users increased, so did its capacity problems, which made many customers angry because they could not get a connection. The problem was solved when AOL made a deal with MCI WorldCom, which led merge with its rival CompuServe.
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The history of the internet shows that the internet is not a new medium. The internet was initially created in the 1960's to as a way for the United States to stay connected in case of a nuclear fallout due to the possible consequences of the Cold War. F...
The key changes taking place in the online industry in 1995 are the introduction of the Microsoft network and the coming of use of the Internet World Wide Web which offered alternative channels to content providers that provided more control over their offerings and potentially higher revenues. Microsoft Network took only a 30% commission fee (versus 80% taken by AOL from its content providers’ revenues) from its content providers and offered providers the option of choosing any format and font to display their content (versus the standard screen displays offered by AOL and its rivals). Also, the per-hour pricing policy offered by Microsoft was superior to AOL’s. With the development underway of a way to provide on-line currency collection, the World Wide Web offered huge incentives for providers to start publishing material on the internet by their own means without having to go through a middle-man such as an online provider. Both of these offerings do not bode well for AOL’s future prospects due to the huge incentives for customers and content providers to switch to these alternative distribution channels.
Advertising has been round for centuries; starting with print ads, then evolving into radio and TV adverts. Each form of advertisement requires several different strategies in order to make the advertisement effective and appealing to the consumer. With the ever popular rising of the usage of the internet, online advertisements have also become more popular. According to Dr. David Evans, who received his Ph.D. in Economics, e-commerce, or sales processed online, were equal to 34 billion dollars as of 2008. (Evans, 2) This amount has only grown and will continue to grow as the usage of the internet becomes more and more popular. The heart around this monumental sum of revenue is online advertising. Advertising agencies optimize their online
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