Home

Wednesday, September 7, 2011

CE: Fired, Fired, and Fired.

"Yahoo has now replaced three CEOs in a little over four years. "
A recent firing of Carol Bartz, CEO of Yahoo, has led readers to view the situation in various different lights.  Fired by Roy Bostock, chairman of Yahoo, on Tuesday, Septermber 6 over the phone, one can wonder what she did wrong.  First of all, was the financial downturn.  Bartz led an austerity, a reduction in the amount of benefits and public services provided, that helped increase Yahoo's earnings, but failed to increase its revenue even as the advertising market on the internet grew rapidly.  Another reason was the integration of Microsoft's search engine "Bing" into Yahoo's search engine.

There are many reasons that leads to the decline of Yahoo.  One of many is the rise of G-Mail.  Although Yahoo was a major email provider a while back, when G-Mail came out, it blew Yahoo's email service out of the water.  G-Mail had more features and benefits than Yahoo's plain emailing system.  The layout of G-Mail was also more professional looking, which attracted many businesses that wanted to emphasize its class.  Another competitor was Facebook, which revolutionized social networking, and provided fierce competition for Yahoo.

In my opinion, I think the reason why Yahoo is declining, is that they don't have innovation.  Take a look at Apple.  With more money than the federal government, one of their major money-making skills is innovation.  Apple revolutionized the smartphone industry and the tablet industry with the arrival of the iPhone and the iPad.  Their innovation led to a professional device that had a smooth user experience and user-friendly software.  If Yahoo had some innovation from the new CEO, who knows?  Maybe they might just bounce back on track.

3 comments: