The ongoing talks on Microsoft buying Yahoo at US$44 billion signify one thing: Yahoo is no longer profitable. Yahoo has reached a point-of-no-return stage in the product cycle. But Yahoo is not yet dead.
However, the company may die in natural death if no other company could salvage the former's dormant assets. I said in an earlier post that Google should buy Yahoo, and not Microsoft because Google is more capable of managing online wealth. Microsoft, on the other hand, is expert on software development. Thanks to its Windows XP. But no thanks to Microsoft's Windows Vista and Internet Explorer.
If you are one of Yahoo's decision-makers, you won't talk of selling the company if it is still highly profitable. Microsoft's fearless bid on buying Yahoo is a portray the latter's inevitable decline.
What can we learn from Yahoo's decline? I would like to cite one lesson: Failure to innovate.
Was the company too busy developing on Yahoo Email and Yahoo Directory? How come Yahoo neglected the development of its search engine capability? Google's success is all anchored on its powerful search engine, which is used by 70 % of the world's Internet users.
The world is changing fast. Market demand can fluctuate at any time of the day. People's needs and wants can change rapidly. If you own a business offline or online, you must innovate. Respond quickly to change.
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Yahoo's Decline: What Lesson To Learn
