Case Study Description of Multi-jurisdictional Compliance: Yahoo!, Inc.
Yahoo!, Inc. operated a number of web sites, including an auction site, a search engine directory at Yahoo.com (written in English), and a regional site at Yahoo.fr (written in French). On Yahoo's auction site, various third parties posted for sale Nazi-related propaganda and Third Reich-related memorabilia, including Adolf Hitler's Mein Kampf and "The Protocol of the Elders of Zion" (an infamous anti-Semitic report). In April 2000, the French-based International League Against Racism and Anti-Semitism (also known as LICRA), a nonprofit organization dedicated to eliminating anti-Semitism, sent a "cease and desist" letter to Yahoo. LICRA warned Yahoo that the advertising and/or the sale of Nazi memorabilia and racist literature or objects on its auction site were prohibited in France. Another nonprofit organization dedicated to eliminating anti-Semitism, L'Union des Etudiants Juifs de France, joined LICRA and took Yahoo to court. This case discusses how foreign courts have reached far to assume jurisdiction over e-business. It also demonstrates that e-business faces increased risks of liability abroad as countries bolster their efforts to put up borders in cyberspace. Also explores the steps e-businesses can take to reduce the litigation risks in inconvenient or inhospitable forums.
Authors :: Ali F. Farhoomand, Marissa McCauley, Mary Ho
Swot Analysis of "Multi-jurisdictional Compliance: Yahoo!, Inc." written by Ali F. Farhoomand, Marissa McCauley, Mary Ho includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Yahoo Licra facing as an external strategic factors. Some of the topics covered in Multi-jurisdictional Compliance: Yahoo!, Inc. case study are - Strategic Management Strategies, Regulation and Global Business.
Some of the macro environment factors that can be used to understand the Multi-jurisdictional Compliance: Yahoo!, Inc. casestudy better are - – technology disruption, geopolitical disruptions, challanges to central banks by blockchain based private currencies, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, increasing transportation and logistics costs, wage bills are increasing,
there is increasing trade war between United States & China, increasing energy prices, etc
Introduction to SWOT Analysis of Multi-jurisdictional Compliance: Yahoo!, Inc.
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Multi-jurisdictional Compliance: Yahoo!, Inc. case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Yahoo Licra, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Yahoo Licra operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Multi-jurisdictional Compliance: Yahoo!, Inc. can be done for the following purposes –
1. Strategic planning using facts provided in Multi-jurisdictional Compliance: Yahoo!, Inc. case study
2. Improving business portfolio management of Yahoo Licra
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Yahoo Licra
Strengths Multi-jurisdictional Compliance: Yahoo!, Inc. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Yahoo Licra in Multi-jurisdictional Compliance: Yahoo!, Inc. Harvard Business Review case study are -
Strong track record of project management
– Yahoo Licra is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Operational resilience
– The operational resilience strategy in the Multi-jurisdictional Compliance: Yahoo!, Inc. Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Successful track record of launching new products
– Yahoo Licra has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Yahoo Licra has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Ability to recruit top talent
– Yahoo Licra is one of the leading recruiters in the industry. Managers in the Multi-jurisdictional Compliance: Yahoo!, Inc. are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Yahoo Licra has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Yahoo Licra to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Yahoo Licra are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Yahoo Licra digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Yahoo Licra has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Training and development
– Yahoo Licra has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Multi-jurisdictional Compliance: Yahoo!, Inc. Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Sustainable margins compare to other players in Global Business industry
– Multi-jurisdictional Compliance: Yahoo!, Inc. firm has clearly differentiated products in the market place. This has enabled Yahoo Licra to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Yahoo Licra to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Yahoo Licra has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Multi-jurisdictional Compliance: Yahoo!, Inc. HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Yahoo Licra in the sector have low bargaining power. Multi-jurisdictional Compliance: Yahoo!, Inc. has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Yahoo Licra to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Yahoo Licra has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Weaknesses Multi-jurisdictional Compliance: Yahoo!, Inc. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Multi-jurisdictional Compliance: Yahoo!, Inc. are -
High operating costs
– Compare to the competitors, firm in the HBR case study Multi-jurisdictional Compliance: Yahoo!, Inc. has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Yahoo Licra 's lucrative customers.
Products dominated business model
– Even though Yahoo Licra has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Multi-jurisdictional Compliance: Yahoo!, Inc. should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Yahoo Licra is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Multi-jurisdictional Compliance: Yahoo!, Inc. can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Yahoo Licra has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Multi-jurisdictional Compliance: Yahoo!, Inc., is just above the industry average. Yahoo Licra needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Workers concerns about automation
– As automation is fast increasing in the segment, Yahoo Licra needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Lack of clear differentiation of Yahoo Licra products
– To increase the profitability and margins on the products, Yahoo Licra needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Yahoo Licra is dominated by functional specialists. It is not different from other players in the Global Business segment. Yahoo Licra needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Yahoo Licra to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Multi-jurisdictional Compliance: Yahoo!, Inc., it seems that the employees of Yahoo Licra don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Low market penetration in new markets
– Outside its home market of Yahoo Licra, firm in the HBR case study Multi-jurisdictional Compliance: Yahoo!, Inc. needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Yahoo Licra has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Yahoo Licra even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Opportunities Multi-jurisdictional Compliance: Yahoo!, Inc. | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Multi-jurisdictional Compliance: Yahoo!, Inc. are -
Learning at scale
– Online learning technologies has now opened space for Yahoo Licra to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Yahoo Licra is facing challenges because of the dominance of functional experts in the organization. Multi-jurisdictional Compliance: Yahoo!, Inc. case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Yahoo Licra can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Multi-jurisdictional Compliance: Yahoo!, Inc., to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Yahoo Licra can use these opportunities to build new business models that can help the communities that Yahoo Licra operates in. Secondly it can use opportunities from government spending in Global Business sector.
Loyalty marketing
– Yahoo Licra has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Using analytics as competitive advantage
– Yahoo Licra has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Multi-jurisdictional Compliance: Yahoo!, Inc. - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Yahoo Licra to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Yahoo Licra can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Yahoo Licra to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Creating value in data economy
– The success of analytics program of Yahoo Licra has opened avenues for new revenue streams for the organization in the industry. This can help Yahoo Licra to build a more holistic ecosystem as suggested in the Multi-jurisdictional Compliance: Yahoo!, Inc. case study. Yahoo Licra can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Yahoo Licra in the consumer business. Now Yahoo Licra can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Yahoo Licra can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Yahoo Licra can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Yahoo Licra can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Threats Multi-jurisdictional Compliance: Yahoo!, Inc. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Multi-jurisdictional Compliance: Yahoo!, Inc. are -
High dependence on third party suppliers
– Yahoo Licra high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Shortening product life cycle
– it is one of the major threat that Yahoo Licra is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Stagnating economy with rate increase
– Yahoo Licra can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Yahoo Licra can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Multi-jurisdictional Compliance: Yahoo!, Inc. .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Yahoo Licra with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Yahoo Licra needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Consumer confidence and its impact on Yahoo Licra demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Yahoo Licra business can come under increasing regulations regarding data privacy, data security, etc.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Yahoo Licra.
Environmental challenges
– Yahoo Licra needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Yahoo Licra can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Yahoo Licra in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Weighted SWOT Analysis of Multi-jurisdictional Compliance: Yahoo!, Inc. Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Multi-jurisdictional Compliance: Yahoo!, Inc. needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Multi-jurisdictional Compliance: Yahoo!, Inc. is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Multi-jurisdictional Compliance: Yahoo!, Inc. is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Multi-jurisdictional Compliance: Yahoo!, Inc. is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Yahoo Licra needs to make to build a sustainable competitive advantage.
