How important is it to be first in the market? We find the answer by examining two of the worlds most known online brands, Google and Yahoo. In this strategic analysis learn how Google took over the search industry while stripping Yahoo of it's competitive advantage. Gain insight on how to position your company in your market and dominate.

1. HOW GOOGLE
STOLE THE INTERNET
FROM YAHOO
A strategic analysis
by Khufere Qhamata for
YourBrandSuccess, Inc
www.YourBrandsuccess.com
Contact | Info@yourbrandsuccess.com | (832)- 409- 2174

2. A Strategic Analysis: How Google Stole The Internet From Yahoo
Written by Khufere Qhamata
© 2014, How Google Stole The Internet From Yahoo
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How Google Stole The Internet

3. How Google Stole The Internet
90 percent of the time you’re taught in business it’s all about being first to market. And in most cases
that philosophy reigns true, except in the case of Google and Yahoo. I believe the Google and Yahoo
story is the perfect example of how entering the market late can not only lead to more profits, but
market dominance. Why? Simple answer. Google and Yahoo are the perfect examples of what
happens when a market leader gets complacent, and a young upstart seizes a moment of opportunity
to capture the market.
Let’s flash back to the year 1995, when the Internet was still in its infancy, and social media had yet to
be invented. When anyone wanted to look up or research anything on the web, what search engine did
they use? If you answered Yahoo, then you would be correct. From 1995 till 1999, Yahoo was the only
reliable way to search for information. Its stock price once reigned supreme at $118 a share. Its
advertising platform was changing the “advertising” world, and opening opportunities never before
thought of for small business.
How Google Stole Search
Then it happened! Out of nowhere a savvy young upstart named Google entered the market.
At first, Google was seen as a novelty and not a competitor that could pose a serious threat to Yahoo’s
throne. Little did they know then that Google was poised to conquer the world of search, and change
the way we communicate forever. Yahoo’s fall from grace began in 2000, when it inked a deal with
Google for them to supply Yahoo with better search results.
Now lets flash forward 8 years. It’s 2008 and Barack Obama is on the verge of sealing the presidency,
Batman: The Dark Knight shatters box office records across the universe, and the country mourns the
loss Heath Ledger. The less important news of this particular year was that Yahoo’s stock was in the
toilet, which fell to less than 20% market share, and co-founder Jerry Yang had been disposed as CEO.
What happened? One answer, Google!
The Rise of Google
Google was founded in 1997 by Stanford graduates Larry Page and Sergey Brin. They had a vision. A
vision that reflects in their motto “Don’t be Evil” and their mission statement, “to organize the world’s
information and make it universally accessible and useful”. This mission was powerful, and mirrored the
trends and technology of the emerging information age. Google’s search algorithm PageRank,
revolutionized the Internet and the way we search for information.
Developed for a research project while Larry Page and Sergey Brin were still students in Palo Alto,
PageRank then called “backrub”, because the ranking system checks backlinks to determine a site’s
importance, propelled Google to instant success.
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4. On August 19th, 2004 Google went Public, showing their commitment to their motto “Don’t be Evil”.
Google slashed its stock prices at the last min before their IPO, to make their stocks more accessible
for the average consumer. By selling stocks at $85 a share, Google set a new standard for social
responsibility.
By 2007, Google was trading on the Nasdaq for $600 dollars a share and had revolutionized the web
again with the introduction of Google Docs, Google Adwords, and Google Analytics. The key to Google’
s success was their vision and its relevance to the future. When Google said its mission was to
“organize the world’s information and make it universally accessible”, not only was it a broad statement
that allowed for the company to grow in different areas, but it echoed where the world was already
heading.
Why Google will last forever
Google, unlike most corporations, actually lived its mission, incorporating it into every aspect of its
business. Google’s management style is what Jack Welch, former Legendary CEO of GE, popularly
called “Flat”, meaning hands off. They would recruit the best talent and challenge them to create
something spectacular that supported the Google mission and vision. By contrast when we look at the
fall of Yahoo during this same time period (2007-2008), you see a company not in touch with their
mission (to be the most essential global Internet service for consumers and business). The
management style of Yahoo was that of any typical corporation, top heavy and very micromanaging.
There was no focus on improving their search technology, or on innovating new products or services to
fulfill their mission. Yahoo founders were not as socially driven as Google’s, and this is what led to them
being out of touch with the real needs of the information age. To make matters worse, Yahoo was the
first to market, but failed to brand the market.
For example, since early 2000 when anyone needs to search for something on the web they say “I
Googled it”. Even if they are using Yahoo or Bing to search for anything, the term “Googled” is still
applied. Yahoo’s marketing strategy was always aimed at businesses and not the market itself. Google
on the other hand, took advantage of this opportunity and used a subtle marketing strategy, which
consisted of them just being cool and taking risks. They advertised their motto “Don’t do Evil” to death in
the press releases and even included it in their IPO paperwork!
Apart from these factors, Google has always managed to achieve three things with every product or
service , (1) simplicity, (2) cost efficiency, and (3) relevance. After these, Google is successful because
they understood one simple truth, and that is “The most traded commodity in the world is information,
and whoever controls it is king”. My message to Yahoo is: Fire your board of directors and CEO! Start
from scratch and lose the top to bottom management style, it’s so 1990. Most of all create a vision for
the future, believe in it and practice it.
How Google Stole The Internet
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