Ask HN: How would you save Yahoo and bring it back to top place ?
I loved Yahoo, it was like web equivalent of first crush back in High school. But Yahoo is dying albeit slowly. Compare this to Apple of mid 90's when it was almost dead. Now imagine you are The Steve Jobs and your task is to not only save Yahoo but bring it back to top place. How would you do it ? (Selling out is not an option, please!)
51 comments
[ 3.8 ms ] story [ 193 ms ] threadOf course, with Yahoo, I'd probably be selling a lot of stuff and streamlining, and possibly sell the entire thing. Still, realizing shareholder value.
Being a turnaround PE guy would be awesome.
All kidding aside, they need to focus on some core products to start stabilizing their presence again. Give Flickr good leadership. Make Delicious a priority product. Figure out if the search product is worth maintaining.
Above all, they need someone scrappy and clever to lead, not just contain the flailing of their tentacles.
Where are the machines, the staff, the datacenters that were in place for this?
Yahoo has always been pretty good at apps: cross-platform Messenger, an impressive web mail interface for the iPad that looks almost native, etc. They are a web and design powerhouse, if only somebody told them. This is expertise that can be sold; they need to continue building a small number of apps to demonstrate their prowess, and contract this out to develop anything for anyone (e.g. make Yahoo the go-to place for high quality mobile apps for the iPhone?). Even throw the free software community a bone by pulling a Nokia (the old Nokia) and making a Qt-like dual-license so their services have even greater reach.
Yahoo is also a decent source of news, but they aren't pushing this enough. With a bit of care and attention they could clean up the mess that is modern media and give people a really desirable digital newspaper...something that everyone would want as their home page.
Find and fire the people in their company who build toolbars and installers that push toolbars. The last thing any company needs is to be connected with something that users may loathe.
That's just off the top of my head. :)
Right now their homepage seems like they just want to try and make a penny of anything from Auto to social apps to finance. Shutdown or spin off a lot of unrelated features & services that clutter their vision.
Rebrand it.
If they want to survive they need to hire a bunch of really, really great designers and consolidate their properties so that it looks nice, because their homepage looks like a screencap from 10 years ago. Allow people to assemble their home pages like iGoogle. Better integrate Delicious and Flickr into their other properties. Partner with Facebook to add a social component. Decide what they stand for it and make it contrast with Google. Maybe privacy. Then make that the drumbeat of everything they do.
Rebranding might help, but it's very very expensive, and it will only postpone the inevitable.
Yahoo needs to invent something new.
Seriously, answering that question should probably be their number 1 priority. Right now they can't say that "What Yahoo! does is X," much less "Yahoo! is #1 at X," for any X. They need a direction. Answering that question won't solve all of their problems, not by a hell of a long shot, but anything that is effective at solving their problems will necessitate answering that question.
They've decided they're not a search engine. They still sort of seem to think they're a portal; I don't see a lot of people really caring about portals anymore, but maybe if they push hard they could bring that concept back. If they really wanted to be bold, they could try to crack the perennially difficult nut of monetizing quality content on the internet. If they could manage that, they could become the go-to content publisher on the web.
From what I understand of their corporate culture, they probably need a leader that can make changes there as well. They don't need to become Google or a "start-up culture," but they need more focus on product quality instead of the treadmill.
Spot on. Focus on nothing else but this initially. Remember Carol Bartz's answer to "What is Yahoo?"?
Ouch.Link: http://techcrunch.com/2010/05/28/ok-seriously-what-is-yahoo/
At the same time I can't help but feel sorry for a company that once really was synonymous with 'the web' and nowadays has completely lost it's direction.
With innovation, as CEO I would lead a entire division focused on innovation and discovering the next billion dollar revenue source. Lots of prototyping, refining, and searching for the next big thing.
With #2 revenue, I would focus on what currently is giving Yahoo the most revenue and seek ways to grow that. This would provide moderate growth but most importantly fund the innovation that will be the future of the company. Anybody ready to vote me in?
- Simplify it, starting with the homepage. There are way too many things going on here, and I'm sure a ton of features many people don't use. Yahoo dating is handled via Match, but most people who date online already know what Match is, why go through Yahoo? And get rid of Yahoo shopping for now as well, it's not clear what purpose it serves. - Focus on the things that count the most to people. That would include Flickr, Finance, email. Even Yahoo News is pretty useful. - Build a social network around your existing email users. Allow your users to easily incorporate their photos from Flickr. It may be easier to focus on building a network that is mobile based, rather than desktop. If you're going to make an acquisition, try something along the lines of Instagram and then incorporate flickr into it. Then grow it from there, don't even bother with a desktop version, you won't be able to take on facebook at this point. - Getting back to Finance - invest more into it. There's no reason it can't be a CNBC or Bloomberg. I like reading the articles, but I'm not entirely thrilled with the video segments and the quality of the guests, which would typically include some random unknown private equity/hedge fund type person predicting a financial apocalypse. Big potential here. You could create an independent channel that is featured on Yahoo! and maybe partner with companies that will ultimately require more content as they take on the cable industry, such as Netflix, Apple, etc. I have a lot more ideas, but it's late and I'm tired. Despite it's criticisms I'm still a big Yahoo user, for email which I pop (oh, and make it free - that's just a nice thing to do at this point). I'm hoping they make some bold moves to enhance their stature.
Yahoo's business is driven by the adoption of Yahoo! Mail. Most people that use it (it is the largest email provider in the US), don't realize they could put in mail.yahoo.com rather than yahoo.com so stop there on their way to their inbox. That is enough to power nearly every other media site they control to the #1 position with the right mix of articles on the home page.
Have several independent advertising R&D units, each of which operate independently and can take big risks on small portions of Yahoo! traffic.
As other commentators have noticed, Yahoo! has a strong brand as a middle-brow internet presence. A lot of tech-unsavvy users think of Yahoo! as a friendly, trustworthy internet presence. They have a lot of traffic through mail, and Messenger is a strong product too.
They should keep spinning out products for tech-unsavvy users, to keep and grow their traffic, and to strengthen their brand as the friendly, safe choice. They should acquire and/or brand friendly products as Yahoo! Risk is minimized on this front because safe, friendly choices are made to grow traffic and engagement.
On the R&D side, they should focus on innovating in the advertising space, without turning off their users. They should advertising while driving traffic from Yahoo! to Yahoo! properties as much as possible. The innovation and the risks come in the approach to advertising. Big picture thinkers, mavericks, etc. can each have separate skunk-works labs that they can incubate new approaches to advertising. Luckily, each advertising R&D unit can test new advertising models on small portions of Yahoo! traffic.
(1) Create a group that better identifies and manages relevant and trustworthy information quickly for popular categories/topics.
(2) Create a group that finds and reports new/interesting websites.
(3) Make Yahoo Answers much better, or buy Quora.
(4) Create a massive user reviewed products database.
(5) Cut the clutter & trash off the webpages. Simplify!
They abandoned anything like search - a pointless skin on top of Bing is not a product of any value. How many of their users just go to Google?
They seem to have no compelling value add over Gmail / HotMail in the webmail space.
They seem to have mismanaged Flickr into second place behind Facebook as a webstore & sharing entity for photos (in my opinion).
Yahoo messenger doesn't seem to be gaining on or offer anything over FB chat, Gtalk, MSN et al.
So yes like Apple in the 90s, they have lots of stuff some of it cool but too weak focus and no market leadership in anything.
Unlike Apple they don't have a Steve Jobs and a big pile of cool technology and talent like NeXT to buy and absorb. Indeed when they do buy in cool product & talent they seem to mismanage it to death eg Flickr and Delicio.us
A very good question - what should they do?
It's probably unorthodox to expect a site to spread from older to younger people, rather than the other way around, but parents and grandparents have badgering power. If grandma really wants you to get a Yahoo! account so she can keep in touch, there's a good chance you'll at least humor her and get an account. Then you'll notice a lot of your friends have accounts too and add them (because hey, why not?). If the site does a good job of appealing to younger people as well as older people (it's important to strike a good balance), maybe you'll stick around.
I don't know anything firsthand about Yahoo!'s internals, but from another HN thread, it looks like they're probably bloated with counter-productive people. Fixing that in the long term would be important, but probably isn't possible in the short term; Yahoo!'s corporate structure may suck, but it keeps things running, and that's important. In the short term, though, it would be crucial to ensure that the team working on the social network was as unburdened as possible by the existing corporate structure.
Ok, seriously, pretty much they need to stop pushing people away. Open up APIs. Don't get rid of the old mail interface. It works fine. Continue to offer choices. Don't touch the finance site. Don't touch Flickr. Don't censor Flickr. Fight spam in yahoo groups. Offer IMAP/POP3 free.
With Yahoo Stores up-to-date I would try to position Yahoo as a small-to-medium business portal. It's a lucrative market and the competition isn't what it could be (despite the success of Sales Force, Magento, et al).
This would be, or seem to be, a big risk to current revenue, but unless they are bold enough to do that it's going to fade away in time anyway.
Actually motivating the middle management at Yahoo to do this would be tough. Perhaps it's time to simplify the management layer and give technical people more responsibility.
2) Back to basics: search. As soon as possible, get rid of the Bing mess and get back to being a premier search provider. Type nearly any topic into any search engine and you get a Wikipedia page first thing. If I type "hacker" into Yahoo, out of the top ten results, there are five junky results: 2 Wikipedia pages, one Answers.com page, one Dictionary.com page, and one WordIQ page. If I want to get a definition or an encyclopedia page, I can go to those sites. Web search is supposed to pull up awesome cool links from the web, not the standard junk pages that have shallow content and are not hard to find. Even Google is getting infested with these kind of crap results. Nowadays, if I find an awesome link it is typically via a site like HN or somebody's blog, but I remember the days when I used to love going to Google and digging up fresh new links that were interesting.
3) Social is still "ripe for disruption" as they say. The flurry of interest around Google+ is evidence of this. People want more control, and more privacy, and a greater ability to differentiate their online identities without any one identity compromising the other. Eric Schmidt's response to this is "well if you have something to hide blah blah blah" but it's not about having something to hide. It's about the fundamental human need to interact differently in different social and economic settings. Maybe the guy who works as a cube jockey in some corporate wasteland needs to have his LinkedIn profile for trying to make it to the next level, but what about his sideline trying to network his way into a graphic design job? Maybe he needs a couple of profiles and wouldn't like to have to use his real name on either. Innovative approaches to allowing flexibility and growth on social sites (isn't that what the web is supposed to be about?) instead of locking people into one idea that they damn well better stick their RealName(tm) on... that is an area where Yahoo could step in and fill a void. Particularly if it was done right, and done in a way to leverage their existing myriad of user bases across the niche sites.
4) Quality. (Echoes of Steve Jobs and his quest for the perfect shade of yellow in an icon.) An enterprise-wide push for quality would help. Instead of being meh at 100 things, Yahoo could easily be awesome at those same 100 things. They already have the infrastructure in place, they just need to clean house and remodel. (This kind of ties back to point 1.) Flickr is a prime example. It's big, it's a brand name, it has a loyal user base, but it isn't awesome. It needs to be awesome.
5) Develop an identity. If the preceding four steps are done right, this will follow. Google's identity is "search plus a bunch of other crazy shit, and they have really cool offices to work at" right now. It works for them because search (advertising) makes them so much freaking money. But it's not really a coherent identity. Yahoo's identity could easily be "the coolest web portal with the best links". If Yahoo became synonymous with premium quality, they would be unstoppable.
Google is cool because it lets you search for cool stuff, but they aren't anything identifiable except as they find cool stuff for you. gmail and plus, sort of, I guess.
Yahoo can BE cool stuff.
Well, maybe they can be a bargain.
front page PVs skyrocket when it redirected the email logout to it... so that proves NOBODY goes to the frontpage for 'premium content'
people go to yahoo for the assorted free stuff(tm).
does it's email need to be the best one? no, but it's ok and free. and you already see lots of @yahoo around, so why not?
Will people still use flickr even if it lacks 'social networking' features and ugly themes? quite probably. Should they ditch flickr and 'focus' on display advertising and 'premium content'? hell no.
Does babel fish needs to be better than a paid translator? hardly. but it still kicks google translator butt. sadly nobody that arrives to yahoo now will even know it exists.
Bottom line is:
everyone has found memories of yahoo. But for some it was geocities, for some it was their first email... for others it was the way to find pages. heck it may even be because of the cool TV ads!
yahoo should be monetizing this by inventing clever ways to put Ads on those in a manner that isn't offensive.
But no, disregard all that. let's steer yahoo into AOL foot steps. Everyone wants to read about hollywood stars and wacky red neck oddities while a 'hit the monkey' flashing ad fights for their attention.
Recently they forced me out of the old interface with email. Now I can no longer open emails I want to read by option-clicking on links to open them in new browser tabs. All mouse clicks are intercepted by the javascript on the page. Without the ability to do this the email is significantly slower and less easy to use than before. Now I am faced with finding a new email provider, and not gmail. If they had just left it alone or allowed me to use the old. No doubt others feel the same way.
But what do to? Well for news I read yahoo but comment on topix, which is community oriented. Yahoo should clone that. Unlike topix, yahoo seems to license their news content which should provide an advantage. Have news discussion local like with topix. Then sell local classifieds if you get enough local activity boards going and frequented. Might be hard at this point though to get people away from topix.
For me yahoo signified privacy and flexibility with the emails. I used to get news alerts on some topics but they never worked reliably or consistently. Haven't gotten one in a long time so I guess that feature was cancelled.
Oh I also use yahoo groups. These groups should have cloned the functionality of ning.com, to supplement and expand the mailing list paradigm. Yahoo groups have never worked well, screwing up the formatting of most posts and not having a smooth experience for integrating media. That all should have been fixed decades ago. Then try monetizing it like ning does with pay for extras and pay to be the premium ad free host.
A lot of the problems have a vibe that the programmers aren't great, or aren't around long enough to make things great. A lot has the feel of middle management dictating features to programmers rather than software designers being the developers and having the autonomy to own projects long term and make them great.
Then I'd sit back and ask the company[1] "what do we do?" Depending upon the answer, those are the products, strategies, and revenue opportunities we pursue next.
My personal feelings here probably wouldn't matter much, because no matter how intelligent I, or anybody else is, the top 100 creative producers at a company like Yahoo would probably be more creative, intelligent, in-touch, etc than I just by stint of sheer numbers[2]. So, take the best of their ideas[3], and execute on them.
Then, after building up a business which can sustain itself again, I'd start pursuing longer term goals. These goals would be aligned with what the company is capable of: large-scale, software-driven, media operations on the web.
During all of this, of course, there'd need to be a lot of firing and hiring. It'd suck. I'd hate it. But, knowing the tech industry, the people who were fired would find better jobs, and the new people would want to prove themselves. The trick is making sure you didn't waste effort on Sisyphean tasks. Yahoo is not a research company. Yahoo takes existing innovations and brings them to a mass market. Focusing on that would be a strength.
[0] A rodeo term, believe it or not.
[1] Or, say, the top 100 creative people there.
[2] Finally noticed me stealing plays from the Apple playbook?
[3] By which I mean, "ideas which can make lots of cash in the short term".