IBM 414 | Current Events Assignment #7
Kien Lai | IBM 414 | 6/7/02 | California State Polytechnic University, Pomona
- Publication Source: BusinessWeek (online) Date: 6/7/02 Page(s): n/a
- Title of Article: No Boo-Hoos for Yahoo! Here
- The firm is Yahoo! Japan and the marketing strategy presented in the article is diversifying its revenue base in hopes of generating a steady profit each quarter.
- Yes
- The reasoning behind why I think this strategy will work is because the company has introduced online auctions that has surpassed its main competitor eBay, started asymmetric digital subscriber line broadband services that currently has 600,000 subscribers, and has the financial support of one of the largest Japanese banks in Japan, SoftBank. Moreover, Yahoo! Japan has become synonymous with going online with 87% of web users in Japan visiting the site daily. Furthermore, no other site in Japan comes close to Yahoo©s repeat visitor rate of 78%. This gives them a competitive advantage over other sites because Yahoo! is able to offer visitors their services in exchange for a fee such as online auctioning and ADSL broadband services.
- This article relates to the concepts discussed in class by Yahoo! having a competitive advantage over rivals through offering services other than its primary e-mail accounts. Competitive advantage is discussed in chapter 10 of the textbook on page 352.
