What is Yahoo actually for?

As the furore swirled around Yahoo chief Scott Thompson a few days ago, who was forced out over an error in his CV - which wrongly claimed he has a computer science degree, Yahoo has entered what analysts call the "death spiral" - where revenues fall further and further.

Thompson, who started in January, was initially praised by Wall Street for his first round of cuts - removing 2,000 jobs (from a headcount of around 14,000) in order to save $375m per year, saying that it was "an important next step toward a bold, new Yahoo - smaller, nimbler, more profitable and better equipped to innovate."

Nice idea, although note it doesn't actually generate any new revenue. Now see if you can answer this question, which is essential for Yahoo to be able to grow, and jump out of the death spiral. It's one the next CEO should be able to answer really well.

What is Yahoo for?

Yahoo's problem is that since the advent of Google, and then Twitter and Facebook, it hasn't had a unique selling point. Nobody knows what Yahoo is for, or what makes it special.

Being unable to define what your company really stands for, while its advertising revenue base gets eaten away by newcomers, means that Yahoo has the most existential of problems. Nobody knows why it's still there.

The Yahoo CEO's job is a poisoned chalice. Expect the executive search to take much longer this time.

SOURCE: http://www.todayonline.com/TechandDigital/Digital/EDC120514-0000131/Its-time-to-ask-the-question--What-is-Yahoo-actually-for
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