Why Yahoo failed…

Yahoo was one of the most visited websites once upon a time. With a huge number of visitors, Yahoo was the most popular dom-com domain at the time. But what happens then? Probably you would google it to know more about those.

Founded by Jerry Yang and David Filo in 1994, Yahoo began as – Jerry and David’s Guide to the World Wide Web. Yahoo’s original goal was to index and classify the quickly growing World Wide Web. This list of websites helped users navigate the quickly growing depths of the internet at a time when search engines were almost nonexistent.

The directory based approach allowed user to explore the internet in a different way. People started liking the approach. Along with the directory based approach, Yahoo also introduced Yahoo Mail, Yahoo News & Yahoo Messenger. These services were integrated into the Yahoo portal. Its kind of a one stop solution for the user.


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The Failure: 

After its sharp rise in the late 1990s and early 2000s, Yahoo began to face multiple challenges. One of them was its decision to pass on the opportunity to buy Google. Its not just Google; Facebook and Twitter started attracting users t them.  

1. The core was not strong. 

Yahoo was never clear about what kind of organisation they were running. Over the course of time, the core members who ran Yahoo defined their organisation as either a tech or a media company. 

2. Making strong moves in the market.

Yahoo’s product were fine till Google and Meta entered the market. Day by day, users started getting bored with Yahoo’s products. There were no innovations. 

3. The trend was missing.

Yahoo didn’t do anything to catch-up with Google. By 2002, Google was ranked as the number one search engine. Google’s revenue more than quadrupled Yahoo’s $7 billion revenue not long after it emerged as the leading search engine.

In 2006, Yahoo had the opportunity to purchase Facebook for $1 billion. But the management never took a step to crack the deal.

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