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Yahoo business model in serious trouble

Just early last week, I was discussing Google's business model with a client. What we were wondering though was that despite having people like me abandon even our corporate email addresses (I still use my iProceed.com email address on my business card, but forward all my emails to Gmail.com), we still had no choice but to find another website like Yahoo to track my stock portfolio or to read my RSS feeds. I now realize that we were thinking about these issues while Google was putting finishing touches to its latest offering that will literally allow people like me to end our relationship with Yahoo for ever.

Why is Yahoo so bad? (Related article: Yahoo is excellent at nothing but simply executes well)
  1. Yahoo mail (that we all used at one time) is simply not good enough any more compared to Gmail.
  2. Yahoo search is simply useless since the results are almost always manipulated either by spammers or the so-called Search Engine Optimization (SEO) firms. In fact, MSN, that came to the game much later, now provides excellent search results and we expect that it will soon compete with Google.
In summary, Yahoo that seems to be following the Hyundai business model, is no longer a company that we admire. The way Hyundai is around and doing well, Yahoo will still be around and do reasonably well, but do not expect Yahoo to create a buzz in any more.

Another point to remember is that Google is a company that is always transforming its business model. As search has become a mere utility, Google wants to be part of your lifestyle, both at work and home (check out Google's enterprise offerings on its website).

What does it mean for you?
  1. Check out Google offerings. If you have not had a Gmail account yet, let me know. (Related article: Gmail invitations available). Use these and find out how simple and beautiful the offerings are.
  2. While being good at nothing and being just moderate at everything may create value in the near term, but is not a sustainable business model.
  3. Draw a chart of your own business model and compare it to that of Google. Compare and contrast the differences. And then ask yourself What can I change in my business model?

Recommended articles: Business model and Business Model Transformation