Product details

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Abstract

In July 2005, the search engine industry ratings showed that the number of searches on Google, the industry leader, had increased by 6%; where as that of Yahoo's had increased by 9% on a Q-to-Q (quarter on quarter) basis. Though Google had 36% market share in Web search in 2004, Yahoo was catching up fast with a 27% market share. Until 2004, Google had been the undisputed leader in the search engine industry. A wave of mergers, acquisitions, and personnel changes shook up this ever-volatile industry and Yahoo emerged as a threat to Google's dominance. Yahoo was a fully-fledged media and information company whereas Google was technology savvy and was known for its innovation led growth. With different strengths and philosophies, the two companies were competing aggressively in the same market. The case describes the growth strategies followed by both players. Google's innovation driven growth strategy and Yahoo's diversified business model to dominate the industry, has been compared and contrasted. The case highlights the competitive advantages Yahoo and Google have in their respective areas. The case ends with a debate on who would rule the search industry.
Size:
7,600 employees (2004)
Other setting(s):
1995-2005

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Abstract

In July 2005, the search engine industry ratings showed that the number of searches on Google, the industry leader, had increased by 6%; where as that of Yahoo's had increased by 9% on a Q-to-Q (quarter on quarter) basis. Though Google had 36% market share in Web search in 2004, Yahoo was catching up fast with a 27% market share. Until 2004, Google had been the undisputed leader in the search engine industry. A wave of mergers, acquisitions, and personnel changes shook up this ever-volatile industry and Yahoo emerged as a threat to Google's dominance. Yahoo was a fully-fledged media and information company whereas Google was technology savvy and was known for its innovation led growth. With different strengths and philosophies, the two companies were competing aggressively in the same market. The case describes the growth strategies followed by both players. Google's innovation driven growth strategy and Yahoo's diversified business model to dominate the industry, has been compared and contrasted. The case highlights the competitive advantages Yahoo and Google have in their respective areas. The case ends with a debate on who would rule the search industry.

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Size:
7,600 employees (2004)
Other setting(s):
1995-2005

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