Yahoo! Inc.: Sinking Ship, or Sleeping Giant?

As you may already know, Yahoo! unceremoniously fired its CEO Carol Bartz 2 days ago. On my way home yesterday, I was thinking about different aspects of this incident, including the fact that the CEO gets to walk away with millions in compensation, and what Yahoo! has to do to move forward, and get back to its former days of glory.

Yahoo! faces some real challenges moving forward. For me, the two most critical include:

  • Regaining Leadership in the Display Advertising Market: When marketers think ‘online’, that used to mean Yahoo!. Now it means Facebook. Yahoo! has to get on top of this, and fast.
  • Putting a Dent on Google’s Iron Grip of the Search Advertising Market: According to its annual reports, search revenue accounted for 50% of total revenues at Yahoo! in 2010. One doesn’t need a corporate strategist to conclude that there’s some real opportunity there. However, I’m not sure if partnering with Microsoft’s Bing is the way to go.

An article from Adage Digital addresses these issues in an interesting way.

Surmounting Yahoo!’s challenges will be no small feat, regardless of who takes over from Carol Bartz. Any ideas on the way forward? The company apparently needs some fresh and radical ideas.

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