In an interview with the BBC News ,Ms. Carol Bartz, CEO of Yahoo claimed that the company’s competitor -Google will have a problem if it does not diversify its business as search accounts for over 96% of Google’s business, while search accounts for less than half of Yahoo’s busness. Ms Bartz added that Google has to grow a company the size of Yahoo every year to be interesting.
However,it appears that Ms. Bartz comments seem not to recognize Google’s long term growth strategy and seems to discount the superior financial performance of Google over Yahoo in the last three years.The truth is that Google is diversifying and this is evident from the fact that Chrome the Google web browser currently has 6% of Market share.Google has also launched Nexus one phone and the company’s operating systems is used in a lot of mobile phones.
A report in the New York Times two weeks ago shows that Google is competiting in more areas and offers products like Mobile hardware,Mobile OS,Desktop OS and Office Suite which Yahoo does not offer.
Even though under Ms.Bartz ,Yahoo has seen increased profit there is no indication that Yahoo is going to match Google in terms of business growth anytime soon.For example Google’s 2009 key financial indicators show that the company’s Revenue of($23 billion); Profit( $6billion) and Assets ($40 billion) are far higher than that of Yahoo with revenue of($6 billion; Profit($600 million) and Assets ($14 billion).So which company is more likely to be in trouble :Yahoo or Google ?
No comments:
Post a Comment
Post comments here