Group 3 Marie Nikki R. Martinez M997Z208Marko Marinic M997Z206Anja Grgic M997Z205

YAHOO!David Filo & Jerry YangJerry’s GuideYahoo popularityCompeting servicesStarting a businessFundingSell Yahoo! vs Corporate Partnership vs

Venture Capital

Founders and Potential InvestorJerry Yang, FounderDavid Filo, FounderMichael Moritz, Partner, Sequoia CapitalYahoo!´s first business plan was developed

by Tim Brady

Business StrategyYahoo!´s goal is to remain the most popular and

widely used guide to information on the Internet-> the goal of making useful information easy to

find for individualsYahoo!´s strategy is to:1.Continue to build user traffic and brand strenght2.Develop and intergrate the leading technology3.Extend the reach to a broader audience4.Extend the reach and appeal to inernational userd5.Retain the users (“readership”) of Yahoo!6.Rapidly extend the product line

Market AnalysisMarket segmentation:1.Large businesses using the Internet for wide

area information2.Small home businesses using it for

information relevant to the small business3.The individual user/consumer using

information for entertainment

Market Analysis (cont.)Market Trends1. There is large scale adoption of enabling technology in the

areas of network hardware and software, as well as communication hardware and software

2. Telecomunication companies are rushing to put in place basic “hook-ups” in high bandwidth platform

3. The price for high-speed computer is still high4. Home adoption of Internet acces is on the rise5. Formerly closed network online services such as America

Online, Compuserve and Prodigy are now offering Internet access

6. Companies as Yahoo! Which provide means to navigate the Web are growing rapidly as measured by amount of end user traffic

7. These high traffic sites already provide a high volume platform for delivering electronic advertising

Market Analysis (cont.)Competition- Yahoo intends to effectively beat any

emerging competitors by:1.Establishing broader distribution earlier than

any other competitor2.Broadening the product line faster3.Staying ahead of the competitors with

regular core product updates4.Delivering high quality audiences and

compelling results to advertisers

Market Analysis (cont.)Risks1.The ability to increase traffic and enhance the

Yahoo! Brand2.Ability to introduce key new products faster and

better than the competition3.Ability to develop an international presence and

leading brand internationally before the competition

4.The introduction of competitive products internally developed by access providers

5.Ability to scale our support of both the traffic through our main site

6.That the growth of the Internet industry as a whole slows significantly

Yahoo!`s core strategic advantagesIt´s strong brandYahoo´s scalable core technology in search

engine, database structure and communication software

WHAT MAKES YAHOO! AN ATTRACTIVE OPPORTUNITY (and not just a good idea)?

Good managementClear intellectual propertyGrowing client baseClear view of the business going forward

HOW WILL YAHOO! MAKE MONEY?Banner / General advertisingTargeted advertisingLots of advertisers bidding on many millions

of keywords, and hundreds of millions of users doing billions of searches, a small charge each time somebody clicks on an ad, and you get a big business.

MAJOR RISKSTechnology

The race has been ongoing for many years. Inaccurate informationAbility to introduce key new products faster and better

than the competitionMarket

Changes preferencesLikes it personalized

TeamHas to always work together and cooperateTraffic -control

FinancialUnstable stock value

COMPANY ADVANTAGES DISADVANTAGES

REUTERS •Provide news service from a well-known source•Reuters was a London-based media service, which could help publicize Yahoo!

•Poor negotiating position•Integration of news service would prevent free development of Yahoo!

ISN •Popularity•Revenue generating

•Potential taints (associated with a shopping network)

NETSCAPE •Netscape is about to go public. •Publicity and great timing•High-profile founders and backers

•Yahoo! would be bought

COMPANY ADVANTAGES DISADVANTAGES

CORPORATE PARTNERSHIPS (AOL PRODIGY AND COMPUSERVE and KPCB)

•Large funds, money, stock and possible positions•Less risk when it comes to competition•Good reputation

•Potential taints•Lack of control

SEQUOIA •One of Silicon Valley's most influential venture-capital firms•Has funded successful companies such as: Apple, Oracle, Atari, etc…•Top management team assembly•1 million dollar fund

•24-hour deadline•A significant percentage will be given up by Yahoo!

MY RECOMMENDATIONTHE LAST OPTION:

Sequoia Capital

WHY?