Internet Industry - CASE STUDY ON INTERNET MONEY MAKERS

Slide 1: UNIVERSITY OF WOLLONGONG 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)

Slide 2: 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)

Slide 3: UNIVERSITY OF WOLLONGONG Let’s Focus On Founded in 1994 • 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 David Filo Jerry Yang 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)

Slide 4: UNIVERSITY OF WOLLONGONG 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)

Slide 5: UNIVERSITY OF WOLLONGONG Looking Back In 1999 • 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)

Slide 6: 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)

Slide 7: UNIVERSITY OF WOLLONGONG Do You Know What Yahoo Stands For Innovation In Global Branded Network 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 is an acronym for "Yet Another Hierarchical Officious Oracle!" ‘Simple yet, a power marketing innovative tool’ MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182)

Slide 8: UNIVERSITY OF WOLLONGONG Innovation in Business Models “A key to business success is to model what's already working.” 6 Business Models by Kevin Bramlett In An Internet Business Model SERVICES PRODUCTS INTERNET INFORMATION CAREERS ELECTRONIC ELECTRONIC PUBLISHING ADVERTISING MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182)

Slide 9: UNIVERSITY OF WOLLONGONG Innovation in Business Models Evolution In Yahoo! Innovation 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)

Slide 10: UNIVERSITY OF WOLLONGONG Innovation in Business Models What Do Yahoo Have & Offers Yahoo! remains focused on becoming increasingly essential to the lives of consumers. Communications Services: 1. Yahoo! Mail, Content & Media 2. Yahoo! Messenger, Programming Commerce Services: 3. Yahoo! Calendar, 4. Yahoo! Chat, 1. Yahoo! Sports, 1. Yahoo! Shopping, 5. Yahoo! Greetings, 2. Yahoo! Music, 2. Yahoo! Auctions, 6. Yahoo! Clubs, 3. Yahoo! Movies, 3. Yahoo! Finance, 7. Yahoo! Photos 4. Yahoo! News, 4. Yahoo! Travel. 5. Yahoo! Games. There are more to it MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182)

Slide 11: UNIVERSITY OF WOLLONGONG Innovation in Business Models What Do Yahoo Have & Offers Fitting the lifestyles of the mobile consumer : Committed to extending content and services beyond Yahoo! offers an increasing the desktop, array of essential, Yahoo! has the largest global personalized, localized mobile audience and the and timely information on greatest breadth of wireless devices, including wireless products and wireless phones, two-way services of any Web content pagers and personal digital provider assistants. MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182)

Slide 12: UNIVERSITY OF WOLLONGONG Innovation in Business Models Revenues Towards Business Services Yahoo! Used to a small company, started off as a hobby. Investors saw prospective milestones ahead, staring to invest. Firms like Apple Computers, Atari, Oracle & Cisco Systems Riding the rough economy wave in 2000. Yet, today, still one of the successful Internet Company, and makes thru the stock index exchange in the Wall Street 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)

Slide 13: UNIVERSITY OF WOLLONGONG Innovation in Business Models Revenues Towards Business Services R Advertiser & Merchant Programs Business Services E Advertising Services V Communication Properties E Electronic Commerce Geographic Properties Philanthropy N U Strategic Alliances Commerce Properties E Personalized Information Services Affiliate Services S Rich Media Integration & Services MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182)

Slide 14: UNIVERSITY OF WOLLONGONG Innovation in Business Models Let’s Take A Quick Look In Some Of Them 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. Business Services •Yahoo! Management have took over Broadcast.com •Added business services offering with streaming media services, creative design, event planning and promotion MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182)

Slide 15: UNIVERSITY OF WOLLONGONG Innovation in Business Models Let’s Take A Quick Look In Some Of Them 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 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 MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182)

Slide 16: UNIVERSITY OF WOLLONGONG Innovation in Business Models Let’s Take A Quick Look In Some Of Them 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 Geographic Properties • Yahoo! Seek to build upon global user base by developing Internet Properties focused on geographic regions. •Joint venture project with SOFTBANK *Other reports will be stated in the major report MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182)

Slide 17: UNIVERSITY OF WOLLONGONG Innovation in Business Models Project That Related into this table: Reference To Lecture & Textbook Corporate Venture • 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 MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182)

Slide 18: UNIVERSITY OF WOLLONGONG Innovation in Business Models Some Risk Factors • 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 3rd 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)

Slide 19: UNIVERSITY OF WOLLONGONG Industrial Trends 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 Advertising Program Affiliated Programs Integrated Solutions MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182)

Slide 20: UNIVERSITY OF WOLLONGONG Industrial Trends There is a shift major trends affecting the Internet industry sector today. Business-to-Business Business-to-Consumer Common Online Consumer Activities Businesses are finding that Internet- based tools used in the tasks of Research Automobile Purchase Information ordering or tracking inventory; Banking/Manage Accounts managing, hiring or scheduling Chat employees; collecting, managing Check/Trade Stock Portfolios and mining operational data; E-Mail and collaborating with co-workers, Job Search consultants and suppliers can save Mortgage Information and Application Participate in Auctions impressive amounts of time Play Games and money while eliminating Read News Items mistakes and waste 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 MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182)

Slide 21: UNIVERSITY OF WOLLONGONG Conclusion On •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)

Slide 22: UNIVERSITY OF WOLLONGONG Reference For Thousands of Thanks To 1. Cathy La Rocca, Manager Investor Relation, Yahoo! Inc for posting me Yahoo! Inc Year 1999, 2000 & 2003 Annual Report for Stockholders 4. Yahoo.com, Media Relation Centre 6. Lecture Notes & Textbook MGMT3 300 Innovation & E-Commerce 8. Ass. Prof. Sam Garrett Jones, Lecturer For MGMT3 300 Innovation & E-Commerce (University Of Wollongong) 11. Kevin Bramlett, The Proven Internet Business Models - Model Success MGMT 300 INNOVATION & E-COMMERCE NURHAZMAN ABDUL AZIZ (2666182)

Slide 23: UNIVERSITY OF WOLLONGONG Questions On 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)