Yahoo Strategy Vs Google Strategy

Yahoo’s strategy is focused around integrations with already-popular social services, while Google is focused around building and acquiring its own social media powerhouses. While Yahoo does acquire social media companies (e.g. Flickr (Flickr)) and Google has some strong partnerships (e.g. Twitter in Google Real-time search), that’s not the focus of their respective social strategies.

Yahoo’s major competition comes from other search engine firms such as Google. Yahoo’s service philosophy is to minimize the amount of time that users must spend at its site. As a service provider, the firm Yahoo believes that before the new product is released to the outside world, it needs to be more robust than the typical internet software beta. The market risk of broad, public testing is too high; users who try a new service once and have a poor experience with it are unlikely to return.Yahoo’s development/ service process is based upon “slow” release of softwares to users as a new product becomes progressively more robust. Apart from helping to quickly scale services in response to demand fluctuations, the Yahoo setup also has benefit in more effective experimentation. With such a setup, Yahoo also has the flexibility to tailor the customers that first try a new service.

With the launch of its most advanced social product yet, Google’s strategy has finally begun to emerge, and it is a good one. If Google can stir up adoption for Buzz (which it has via Gmail (Gmail)), keep that engagement (this remains to be seen), and launch a standalone version of its social media tool, it can carve out a piece of the (very large) social media pie. Linking or integrating it to YouTube, Picasa, Orkut, Friend Connect, and its other social tools could provide a boost to those services as well.Google has become the best search engine by eating into the market share of Yahoo and other players. Google's popularity among Internet surfers was mainly because of its superior search technology.One of the special features is the speed at which Gmail works. Through Gmail, users can enjoy a faster and more efficient service. A Gmail user need not store the messages in separate folders as all the mails corresponded are grouped into a conversation. This kind of feature is not provided by Yahoo.Google pioneered the concept of Ad Words and Ad Sense, and thus created a sensation in the field of online advertising.The innovation is major strength, in case of Google.

Yahoo gets its revenue from Yahoo mail, ads, and some other features where as Google gets almost 85% of its revenue from ads. Google’s technological innovations and focus on user-friendliness to its popularity.But at the end its all about competition between two big smart players.