Patrick Houston, former Yahoo executive, offered his perspective on the fall of Yahoo in an Information Week commentary. Here's his three "Lessons" learned from Yahoo's decline
- Don't deny your strengths - even when others do. In other words, focus on what you do well, and competitively. Don't wander off in search of new markets in unrelated areas.
- Beware of Belonging to a Club. This can be rephrased as being cautious of adopting an insider mindset, or understanding what your real business is and how it's changing.
- When it's no longer time to persevere, don't. This one's easy - know when it's not working and stop - get out of the market before it drags you down.
Patrick sums it up neatly -
Yahoo (continued to hang on) to its gloried past--when it enjoyed the same stature Facebook does today... A Microsoft-Yahoo combo would have made a far better rival to Google in search, and sooner. And, paired with Microsoft's MSN/MSNBC brands, it would have been a media juggernaut, one too big to fail.The lessons, I think, go far beyond the case of Yahoo - they're good advice for any media or technology firm in a rapidly evolving competitive environment. Firms can no longer rest on their laurels and their traditional business models - they need to continually evaluate their markets and their role in them - shifting and adjusting as needed.
Source - 3 Lessons From Yahoo's Meltdown, From An Insider, InformationWeek