Wednesday, June 20, 2007

Yahoo: Build It Faster

Interesting article from Businessweek. It talks about the steps Yahoo should take to compete more effectiviely.

The Street to Yahoo: Be Aggressive

One way Yahoo can do this is by moving more swiftly on acquisitions. Instead of wasting energy building homegrown versions of popular Web sites or deliberating for months over potential purchases, Yahoo should reach for the pocketbook when it sees a promising property. Imagine, for example, if Yahoo had pounced on Del.icio.us, a company it ultimately acquired, rather than first trying to build its social bookmarking site, "my web."

I'm not sure I'd agree. Acquiring hot startups faster sounds prudent but does it really add value to the brand? For example, if Yahoo bought Craigslist, people still think of them as Craigslist and not Yahoo at all. The fact that the company is now owned by Yahoo I think would just be an aside in people's minds. I don't think it's necessarily bad to go the homegrown route. The issue it seems to me is how to build applications and generate compelling ideas faster. I think Yahoo would be better off solving that problem instead.

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