Learn from Yahoo: They're Doing it Right Strategically

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Yahoo's about to unveil its new homepage, and I'm impressed with how they're approaching its business decisions strategically. As you might know, Google's been on a surge with its search engine market share--putting Yahoo and MSN behind considerably. Yahoo knew it needed change. At first, I remember, Yahoo experimented with a Google-like-only-search-bar-on-the-front-page type of theme. Wrong decision, it proved. The folks at Yahoo knew it couldn't beat Google. It didn't have the technology, the infrastructure, the manpower, the patents, or the venturesome innovators to beat Google.

Choose Your Battles Wisely

Instead of competing where it can't win, Yahoo's now choosing its battles wisely. It's not competing with Google directly with a search-bar-only-front-page. (Too bad we can't say the same for fourth-place Ask.com.) Instead, the guys and gals in Sunnyvale know their hidden gem (a.k.a. strengths & talents) lies in its consumer web portal. Instead of focusing on search, Yahoo's focusing on the web lifestyle. Instead of focusing on building the best search engine (where it can't win), it's focusing on building the best portal experience (where it can win).

Don't compete where you...suck.

Learn from Yahoo: If you don't have the resources, it's time to switch your strategic decisions. Capitalize on what you have, and where you can clobber anybody else.

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Posted on May 16

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