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By Jeff Kagan, Tech Analyst

     

Jeff Kagan

Telecom Industry Analyst

     

Tim Morse, Yahoo CFO has taken the leadership position until they find another CEO.

Yahoo is at a critical point. Will they survive? They can if they focus correctly. Differently from the focus they have had.

Ten years ago Yahoo was the leading search engine web site. Then Google jumped in and changed the world. Yahoo has seen both their users shrink, and the amount of time their current users spend at the site shrink.

What is the answer? Every competitive search engine faces the same competitive problems dealing with Google.

If you can’t beat them at their own game, change the game. Don’t compete against Google. Find a niche and win there.

What Yahoo should do is simple. They should become a winner in one segment of the marketplace. Instead of competing head to head with Google and having their head handed to them, they should focus where Google is not.

One example is Yahoo could become the key search engine for parents and grandparents.

If Google focuses on the young, who focuses on the other segments of society? There are loads of other segments. Yahoo could focus and carve out a successful niche or several niches actually.

They could create a friendly environment for middle age users or elder users. This is no longer sleepy grandparents, but vibrant customers with money to spend on technology and travel and gifts and other creature comforts.

Create a brand that focuses on different groups like the Hispanic community, or Asian or Christian or Jewish and so on. There are so many segments that would love to have their own search engine and social spot.

There is plenty of opportunity as long as Yahoo doesn’t waste their time and money trying to compete with Google.

So what is next at Yahoo and what is the future going forward? These are the questions we want to know the answer to.

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