Internet Industry - CASE STUDY ON INTERNET MONEY MAKERS

INTERNET INDUSTRY CASE STUDY ON INTERNET MONEY MAKERS PRESENTED BY NURHAZMAN ABDUL AZIZ http://haxmanz.cjb.net MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG

Do You Know Any Companies That Related To The Internet Industry ? There is a number out there !! Some examples of companies which started off as search engines Name 5 of them. MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG

Yahoo is found in February, 1994.

Founded by two undergraduate students at Stanford University

David Filo & Jerry Yang.

Both design this technology, as a way to keep track of their

personal interests on the Internet.

In the fall of 1994, translating to almost 100 thousand unique visitors

to their website.

In March 1995, venture capitalists from Silicon Valley expressed

interest. Firms like Apple Computers, Atari, Oracle & Cisco Systems.

They agreed to fund Yahoo! in April 1995 with an initial investment of nearly $2 million.

hired Tim Koogle, a veteran of Motorola & an alumnus of the Stanford engineering department, as chief executive officer and Jeffrey Mallett, founder of Novell's WordPerfect consumer division, as chief operating officer

MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Jerry Yang David Filo Let’s Focus On Founded in 1994

in Fall 1995 from investors Reuters Ltd. and Softbank

in April 1996 with a total of 49 employees.

Today, Yahoo! Inc. is a leading global Internet communications,

commerce and media company that offers a comprehensive branded

network of services to more than 232 million individuals each month

worldwide

The company also provides online business and enterprise services designed to enhance the productivity and Web presence of Yahoo!'s clients. These services include Corporate Yahoo!, a popular customized enterprise portal solution; audio and video streaming; store hosting and management; and Web site tools and services

MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Let’s Focus On Founded in 1994

In 1999, Yahoo has announced his STRATEGY to the Stockholder

As Yahoo defined that Internet removes geographic &

time boundaries, it has present us with an opportunity to

establish global network business

Create a comprehensive navigational guide as a platform

Built deeper offerings in contents, communication & commerce off

off of this platform through extensive partnership

Establish a direct, branded operational presence

MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Looking Back In 1999

What Do Yahoo Found Out From This STRATEGY?

They managed to built one of the world’s largest Web Based audiences

With a total of 120 million users , by end of December 1999

As the go into deeper relationship with global users, they tend to offering

an integrated suite of communication , commerce & media services

Their growth STRATEGY have to remain:

An independent, open aggregator of contents & services.

The brand have to continue to mean comprehensiveness, trust

choice, ease to use and rapid innovation.

MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Looking Back In 1999

Rupert Murdoch: ... In the era of hundreds of channels, global branded networks are powerful draws and can ... Is an important consumer segment, with incalculable impact on the global economy ... By Johnnie L. Roberts Newsweek International ‘ Simple yet, a power marketing innovative tool’ MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG What Yahoo Stands For Innovation In Global Branded Network Do You Know is an acronym for " Y et A nother H ierarchical O fficious O racle ! "

PRODUCTS SERVICES INTERNET CAREERS ELECTRONIC PUBLISHING ELECTRONIC ADVERTISING INFORMATION MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Business Models 6 Business Models In An Internet Business Model Innovation in “ A key to business success is to model what's already working.” by Kevin Bramlett

Yahoo! began as a student hobby started their guide in a campus trailer in February 1994 as a way to keep track of their personal interests on the Internet they were spending more time on their home-brewed lists of favorite links than on their doctoral dissertations When the categories became too full, they developed subcategories and the core concept behind Yahoo! was born. Do You Know? MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Business Models Evolution In Yahoo! Innovation Innovation in

Yahoo! remains focused on becoming increasingly essential to the lives of consumers. There are more to it MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Business Models What Do Yahoo Have & Offers Innovation in Commerce Services:

Yahoo! Shopping,

Yahoo! Auctions,

Yahoo! Finance,

Yahoo! Travel.

Yahoo! Mail,

Yahoo! Messenger,

Yahoo! Calendar,

Yahoo! Chat,

Yahoo! Greetings,

Yahoo! Clubs,

Yahoo! Photos

Communications Services: Content & Media Programming

Yahoo! Sports,

Yahoo! Music,

Yahoo! Movies,

Yahoo! News,

Yahoo! Games.

Fitting the lifestyles of the mobile consumer : MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Business Models What Do Yahoo Have & Offers Innovation in Yahoo! offers an increasing array of essential, personalized, localized and timely information on wireless devices, including wireless phones, two-way pagers and personal digital assistants. Committed to extending content and services beyond the desktop, Yahoo! has the largest global mobile audience and the greatest breadth of wireless products and services of any Web content provider

Yahoo! Used to a small company, started off as a hobby. Yet, today, still one of the successful Internet Company, and makes thru the stock index exchange in the Wall Street Riding the rough economy wave in 2000. Investors saw prospective milestones ahead, staring to invest. Firms like Apple Computers, Atari, Oracle & Cisco Systems What is the secret? Do You Know? Thanks, they posted me their 1999, 2000 & 2003 the Stockholder’s Report last Monday. MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Business Models Revenues Towards Business Services Innovation in

Advertiser & Merchant Programs Philanthropy Business Services Affiliate Services Geographic Properties Strategic Alliances Advertising Services Electronic Commerce Commerce Properties Personalized Information Services Communication Properties Rich Media Integration & Services R E V E N U E S MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Business Models Revenues Towards Business Services Innovation in

Business Services

Yahoo! Management have took over Broadcast.com

Added business services offering with streaming media services,

creative design, event planning and promotion

Strategic Alliances

Yahoo! Entered into strategic relationships with business partners

who offer content, technology and distribution capabilities, like ESPN,

infoUSA.com, Muze for contents, Northpoint, Covad Communication &

K-mart for Internet Access Provider. Etc.

MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Business Models Let’s Take A Quick Look In Some Of Them Innovation in

Commerce Properties

To provide a marketplace for commerce.

Establish a sponsorship agreement with premier merchants,

like Amazon.com, TD Waterhouse, Gerald Stevens, Health Network,

E-Loan, ARTISTdirect, AT&T, WeddingChanel.com and WeddingNetwork

Yahoo! Also enables direct transaction with 7,500 stores, including Brook

Brothers, Toy ‘R’ Us, Victoria’s Secret, OfficeMax, and Zales

Communication Properties

Joint venture project with Pagoo, Inc to produce a service call Yahoo! Personal

Joint venture project with Net2Phone, Inc to produce Phone Services

MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Business Models Let’s Take A Quick Look In Some Of Them Innovation in

Geographic Properties

Yahoo! Seek to build upon global user base by developing Internet

Properties focused on geographic regions.

Joint venture project with SOFTBANK

Philanthropy

A project that supported 500 not for profit groups and donated or raised millions

Of dollars worldwide thru, in-kind advertising. Like Yahoo! Charity Auction

*Other reports will be stated in the major report MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Business Models Let’s Take A Quick Look In Some Of Them Innovation in

Joint Venture with

Pagoo, Inc & Net2Phone, Inc

SOFTBANK, inc

Acquisition with

Broadcast.com, Viaweb, GeoCities

Inktomi Corporation

Sponsorship Agreement with

Autoweb.com, Amazon.com,

E*trade, AT & T, Health Network, etc

Strategic Alliance with

ESPN, Muze, Reuters,

The Wall Street Journal

Project That Related into this table: Corporate Venture MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Business Models Reference To Lecture & Textbook Innovation in

Financial results for any particular period will not be

predict results for future periods

Because of uncertain nature of the rapid changing market

Rely heavily on revenues derived from Internet advertising

which may prove to be an ineffective means for both current &

potential clients

Revenues from the sales of advertisement under short term contracts

advertiser agreement or sponsorship agreement

Dependence on 3 rd party content providers subjects to risk

future depend upon the ability to aggregate, compelling content

And deliver

MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Business Models Some Risk Factors Innovation in

After the rough waves in 2000 (the dot.com crash), there is a major shift the Industry trends. Even, Yahoo! have prepared for it a year before, yet competitors are still there. Generally, all the internet company have the similar basic concept, Apart from the business model: Service & Products E-commerce Affiliated Programs Advertising Program Integrated Solutions MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Industrial Trends

There is a shift major trends affecting the Internet industry sector today. Business-to-Consumer Business-to-Business Common Online Consumer Activities Research Automobile Purchase Information Banking/Manage Accounts Chat Check/Trade Stock Portfolios E-Mail Job Search Mortgage Information and Application Participate in Auctions Play Games Read News Items Read Product or Entertainment Reviews Research Consumer Health Issues Shop/Check Product Prices and Features Make Travel Reservations Source: Plunkett Research, Ltd., www.plunkettresearch.com Businesses are finding that Internet-based tools used in the tasks of ordering or tracking inventory; managing, hiring or scheduling employees; collecting, managing and mining operational data; and collaborating with co-workers, consultants and suppliers can save impressive amounts of time and money while eliminating mistakes and waste MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Industrial Trends

Yahoo! is a classic company that is found out of a hobby of 2 students.

Through fast rapid time changes in the economy, industry and technology,

The hobby turn out into a source of income for them at a high level.

Innovation in handling and solving the needs in essential to the lives of

consumers changes , as materials can be found on 1 site.

The innovation evolved rapidly, as the industry start to be demanding.

E-commerce is Introduced to generate revenue for the innovation to proceed.

New business trend can be identify, like joint venture, acquisition & strategic alliance

MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Conclusion On

Cathy La Rocca, Manager Investor Relation, Yahoo! Inc for posting me Yahoo! Inc Year 1999, 2000 & 2003

Annual Report for Stockholders

Yahoo.com, Media Relation Centre

Lecture Notes & Textbook MGMT3 300 Innovation & E-Commerce

Ass. Prof. Sam Garrett Jones, Lecturer For

MGMT3 300 Innovation & E-Commerce (University Of Wollongong)

Kevin Bramlett, The Proven Internet Business Models - Model Success

MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Reference For Thousands of Thanks To

Questions Guys Try My Best To Answer Thanks For Listening To www.yahoo.com (if you never heard of it before) MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182) UNIVERSITY OF WOLLONGONG Questions On