Internet Marketing Monitor
November 20, 2006
Filed Under (Yahoo) by Matt / Derick on 11-20-2006

In its continual struggle to catch up to rival Google, Yahoo must find new ways of doing a business that it helped create.  While once the leader of internet search, Yahoo has fallen behind Google over the past few years and is now racing to regain lost market share.

According to senior vice president Brad Garlinghouse, that struggle can only be won by a complete ground-level restructuring of the company and its operations.

In an internal company memo released by the Wall Street Journal, Garlinghouse said that the company suffered as a result of no clear focus or strategy.  Using a peanut butter analogy, he describes the company as spread to thin - Yahoo tries to be all things to all people.

To rectify the problem, Garlinghouse is suggesting a reduction in Yahoo's workforce of 15 - 20 percent and a refocus of the company's attention to a few key areas, including video, mobile, and social networking.  In addition, he argues that the company needs a "radical restructuring" to define who is in charge and what departments should each focus on.

Over the past week or so we've seen Yahoo move aggressively into mobile advertising and social networking.  The memo published in the Journal was written last month.  Could these emerging media pushes be the first signs of the new Yahoo?  What better way to see where Yahoo is and where it needs to go than a memo written by Yahoo and for Yahoo.

While the details of the memo's impact on the company are still unclear, one thing isn't:  Yahoo has a lot of ground to cover if it wants to de-throne Google.

 

 

Related Posts & Pages Recent Posts



Comments:
3 Comments posted on "According To Exec, Yahoo In Need of Restructuring"
Drastic “Re-alignment” Announced By Yahoo on December 6th, 2006 at 3:57 pm #

[…] Immediately following the release of the so-called "Peanut Butter Manifesto" by a Yahoo senior executive several weeks ago, the technology industry was abuzz with questions and predictions about where the company would go.  The wait is over. […]


[…] But the other reason I called the move "bold" has to do with Yahoo and its business issues.  For months now we've been seeing signs that Sunnyvale was responding, albeit slowly, to the so-called "peanut butter manifesto".  The memo, which was released as a call-to-arms, suggests that Yahoo was spread too thin, had too many departments and segments, and had too many managers.  The company went through a pretty substantial restructuring shortly after the memo was released. […]


Yahoo! Does the Management Shuffle... Again on August 30th, 2007 at 7:48 am #

[…] have become common practice at Yahoo. Since an internal memo that came to be known as “The Peanut Butter Manifesto” was leaked to the public, the company has gone through numerous changes to overhaul its […]


Post a comment
Name: 
Email: 
URL: 
Comments: