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Yahoo's CEO offers Google business advice

Don't copy us
Fri Apr 30 2010, 17:33

WEB BUSINESS GURU Carol Bartz, Yahoo's CEO has offered Google some strategic business advice.

Chief Yahoo Bartz told the BBC that Google has a problem due to concentrating its efforts on web search.

Apparently she thinks that her company's far more successful web search rival needs to grow by the size of Yahoo every year in order to remain interesting. Given the rapidly diminishing size of Yahoo, that shouldn't be too hard for Google to accomplish.

Bartz, who was paid $47 million last year for her efforts to turn the ailing web portal around, said 99.9 per cent of Google's business is in web search. Perhaps she failed to grasp that web search isn't really Google's primary business but rather just a means to an end. Google has grown to become one of the main advertising brokers in the world, on any media, with the firm's massive and market leading search engine simply allowing it to target those ads, providing greater value for money to advertisers.

Though Bartz lecturing Google on business strategy is almost as laughable as Steve Jobs talking about openness or the evils of cross platform development, Yahoo has posted favourable financial results recently. However, when Yahoo is compared against Google, it's hard to see why the Internet search giant would take any notice of a firm that had to put its fate in the paws of the Vole just to stay afloat.

The situation is tinged with more than a touch of irony, given that Google went, cap in hand, asking for money from Yahoo before it went public. At that time, Yahoo, close to the peak of its powers, declined. And the rest, as they say, is history.

Bartz's claim that Google needs to diversify more is all the more surprising given how much Google has already diversified its services and reach, as exemplified by its innovative success with the Android OS, Gmail, Google Apps, Google Earth, Chrome and its purchases of Youtube and Admob, among others.

Google retains about 70 per cent market share in web search, varying some by geographic region and country, and Yahoo would be thrilled to have anything approaching Google's revenues, or stock price.

Though Youtube and some other efforts have so far failed to turn in a profit, Youtube remains the top video streaming website by some margin and Google rakes in so much money that it can well afford to invest in ambitious development efforts and visionary projects.

Perhaps Bartz should navigate away from her firm's overloaded web portal's landing page and see what a company, seemingly untouched by the recession, is actually doing. Who knows, it might help her as she tries to turn Yahoo's fortunes around.

Or maybe Yahoo's board should decide that if Carol Bartz is strategising about how to run Google, instead of Yahoo, maybe she ought to go get a job over there. µ

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Comments
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I propose not to hold back until you get big sum of money to order different goods! You should just take the a href="http://lowest-rate-loans.com/topics/personal-loans" personal loans /a or college loan and feel fine

posted by : Jacquelyn18Dotson, 26 May 2010 Complain about this comment
whats yahoo?

Really, if you can't beat them criticize them

posted by : Scott, 03 May 2010 Complain about this comment
Bing?

Keep an eye on Bing indeed. MS's online division is@close to having lost $10 billion lifetime to date.

Paying people $20-$30 via Bing cashback is not sustainable in the long or even short term. Especially when that user goes right back to Google for their regular searching. What MS has trained people to do is use Bing to search for online goods and get the cashback. This is not really helping, just delaying the inevitable.

posted by : Jill, 03 May 2010 Complain about this comment
She is right, though

Businesses survive by making money - so in the one way that matters she is correct. All of Google's other efforts are basically forward-looking, aimed at future domination of market segments whih they currently don't target, and they have yet to demonstrate an ability to turn a profit on any of them.

Don't get me wrong, some of Google's tech is great - Android in particular looks like a lasting contribution, and their programming language Go has a lot of potential - but they are not products, and they'd better keep an eye on Bing, which gives MS the tools it needs to take a big bite out of their ad revenues.

posted by : Kerome, 02 May 2010 Complain about this comment
Yahoo

Dunno. Just going on that yahoo page makes me gag. Here's my advice lady. Don't make me gag.

posted by : Mark, 01 May 2010 Complain about this comment
She sounds like a subscriber to seagull managment

She sounds like a seagull, squarks like one - whens the shit hitting yahoo's fan?

posted by : Paul Gray, 01 May 2010 Complain about this comment
Not the same thing

I think she speaks from money making perspective google is 99.9 search.

This is, all other ventures are mainly publicity and influence (for now).

Where Y! streams money from many (much) smaller sources, including its overloaded front page and its many many subsides (like OMG!)

posted by : you know, 01 May 2010 Complain about this comment
As expected

from the CEO of yahoos.

But at least they are not (willfully) evil

posted by : egil, 30 April 2010 Complain about this comment
Joke

This woman is a joke right? Google has loads of business ventures that are not search. Some of these include; mail, buzz, android, chrome, wave, translate and the list goes on. She is obviously feeling the heat as yahoo sucks so bad, my shopping trolley is more organized than the yahoo website.

posted by : James, 30 April 2010 Complain about this comment
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