Yahoo’s strategy in regaining competitiveness.

This post will be about an article titled “What Will Marissa Do?: Yahoo CEO Zeroes in on Search, While Her Ad Team Eyes Tech Upgrade Options.”

After years of declining profits and losing the competition to Google and Microsoft in the key area of search, Yahoo decided to hire Marissa Mayer as CEO.

In the article, Marissa Mayers seeks to use her expertise in consumer search experience to find small opprtunities that could give the biggest benefit possible to the company.

Therefore, Mayers is seeking to transition her company’s strategy from a broad, differentiation strategy into a narrow, focused strategy which heavily emphasizes on its ability to differentiate.

Mayers is probably the best candidate to steer the company towards that strategy as she has the expertise and expertience necessary to understand what are the key areas that consumers want and need but is not covered by the larger competitors.

In order to achieve the strategy however, Mayers has to make tough decisions in cutting down unprofitable divisions and redirect skills and talents into new areas. More importantly, she has to completely transform the beureaucratic Yahoo to something that is lean and mean.

The ability for Yahoo to move forward hinges upon how fast can it focus its strategy, but will the massive resources of Google and Microsoft fill up opportunities faster than Yahoo can move?

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