The mobile industry is that sector that has ample
room for growth. Alibaba is a renowned name in the industry with a stable
growth trajectory. Yahoo on the other hand has been stumbling and needs to use
Alibaba’s IPO to flourish. Despite Yahoo has made many successful acquisitions
in the previous ten years still it needs to work on its internal growth.
Marissa Mayer who is the new CEO of Yahoo and was
initially affiliated to Google in her recent conference admitted that there is
great room for improvement in terms of the mobile service Yahoo has to offer
since just through its weather application it has succeeded in acquiring a
stable position in the market. Mayer believes that for any successful business
the first step is to get you recognized and the second is to execute
effectively. Mayer added, “[Mobile is] a really critical issue. It's certainly
one of the biggest missed opportunities that I saw when I came here.”
Yahoo
only jumped into the mobile market when Mayer joined the company in 2012 before
that there was no mobile segment initiative by Yahoo. She believed that this
sector had ample opportunities for growth and the company was missing on a
potential market. She gradually realized that Yahoo had to increase and work on
its mobile offering. Mayer constantly reinforces the importance of the mobile
sector to the company.
So the question primarily arises why invest in the
mobile segment? In 2013 the company officially started to invest in the mobile
sector under the influence of Mayer. The company entered late in the market and
had already staunch rivals thus Mayer played smart and put a big workforce in
play in order to cope up at a faster pace.
In fiscal year of 2014 the results obtained from
investing in the mobile sectors have been fairly moderate. Yahoo has some
application that have the most user consumption proving that investing in the
sector has proved to be fruitful for the organization with more potential of
growth in the years to come. Although the company itself is losing its charm
but despite that its mobile sector is producing revenue for the company. The
company’s users have multiplied in just a matter of 4 years where initially
they had 150 million users and now 450 million users. Moreover the revenue from
advertisements has also soared in a short span of time.
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