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Google VS Yahoo- who is the best?
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There was a massive change in corporate structure in the last 30 years in the modern R & D industry:
- There is more freedom for self expression & realisation
- Open environment offices allow a free flow of information and ideas
- Low hierarchical structure
- Project based work approach
Examples of deployment of these principals can be found in the most successful and profitable organisations, such as SEMCO, Oticon, Volvo & Google.
For the three first it was a necessity to survive on a new global market and to reinvent themselves, while for Google it was a natural approach adopted by two young founders, where it’s all about individuals fulfilling or exceeding their potential, and employees are given significant license to foster this.
Yahoo, Google’s closest rival, has a different corporate approach- more traditional & mature, with tough management discipline, but perhaps lacking the creative giddiness it had in its early years.
Yahoo
Many analysts believe that Yahoo is entering a new era as a media company rather than a tech innovator and will be in a better position to strike partnerships, license content and create new original programming.
Yahoo is also putting a lot of an effort to attract top engineering talents, scouting for experts in various fields such as search algorithms and Internet communities.
Yahoo doesn’t spend aggressively on acquisitions. From 2002 to 2003, Yahoo bought Inktomi, HotJobs & Overture.
Last year it has taken a less financially risky approach by systematically examining and buying upstarts in up-and-coming markets. All the recent acquisitions were so small they didn’t significantly impact earnings, so financial terms were not disclosed.
Google
Google’s $2.5 billion war chest and freedom let employees throw many new services against the wall to see what sticks. But critics question whether Google has an efficient process for managing innovation.
When it comes to acquisitions, Google rarely spends big and it acquires upstarts in growth markets that no one saw coming, such as Kaltix, Applied Semantics and Pyra Labs.
Google’s research and development budget is doubling almost every year which continues to attract some of the top talents in the country. Google executives seem well aware that they have to continue to innovate to maintain their edge.
Conclusion:
After the dot-com bust, Yahoo approached marketers with a more humble, bottom-line pitch. Yahoo’s sales team now focuses on traditional partnerships and handholding with ad agencies, trying to be a strategic partner.
In contrast, Google’s approach relies on classified advertising that is based on technology rather than relationships.
Yahoo has a big branded advertising business, while Google is all search, to the extent that brand advertisers who want to participate in the Internet, Yahoo’s a better bet.
So who is going to win? Is it going to be Yahoo with its traditional corporate structure and business methods or Google with its modern and self-fulfilling approach?
Many believe that one day Google is going to hit a wall and its going be spectacular. The question is, will it follow the principal of revolution consuming its children (revolutionary approach and as a result a fall) or will it find a way to reinvent itself and reach the skies?
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This entry was posted on Wednesday, November 28th, 2007 at 6:00 pm. You can follow any responses to this entry through the RSS feed.
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