Question

Please conduct an external analysis to identify the mobility barriers for the company Yahoo Inc.

Answer 1

Yahoo has been one of the global platforms for sharing content of every genre through email. Yahoo is social networks where individuals not only share content but also interact with each other with the chat feature.

First, Yahoo! analyzes the Threat of New Entrants coming into the Web industry.

The Threat of New Entrants refers to "the possibility that the profits of established firms in the industry may be eroded by new competitors"In Yahoo!'s industry, it is relatively easy for any firm to have an eye-catching website. A new entrant can be a firm in its beginning years who does not have a significantly large budget, but could better serve consumers wanting specific products or services because of new technology it owns.

Bargaining Power of Buyers in an industry. "Buyers threaten an industry by forcing down prices, bargaining for higher quality or more services, and playing competitors against each other" With Yahoo! expanding their search capabilities by adding new features like its alliance with SBC communications, adding WUF Networks Inc., and HotJobs.com, Semel is aiming to keep more of Yahoo!'s consumers within the Yahoo! website and prevent them from exiting to search on a competitor's sites.

The Bargaining Power of Suppliers

Yahoo! is an intermediary between some buyers (consumers) and sellers (advertisers) and is business-to-business oriented. Suppliers can make arrangements on the Internet to make searching and buying easier for consumers and prevent them from switching.

Any company in an industry needs to keep a watchful eye for the Threat of Substitute Products and Services. "Substitutes limit the potential returns of an industry by placing a ceiling on the prices that firms in that industry can profitably charge" A firm can research what products and services other firms are selling and make substitute products or services. This is the case for Yahoo!'s digital theme part Semel is pushing into effect.

Intensity of Rivalry Among Competitors in an Industry "Because the Internet creates more tools and means for competing, rivalry among competitors is likely to be more intense" Google is Yahoo!'s biggest competitor, and is regarded "as the most prominent search engine in most parts of the world" . Semel and his team have been dedicated to increase Yahoo!'s search engine capabilities to compete with competitors like Google, MSN, and AOL.