When Will The New Internet Hero Emerge?

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Dec 07 2006
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Internet search giant Yahoo (Nasdaq : www.yahoo.com, quote)announced a management overhaul and an aggressive company restructuring with the appointment of chief financial officer Susan Decker in charge of ad sales but it wasn’t enough to satisfy investors when the stock price took a dive of 2.1% yesterday, 6-Dec-2006.

Finally, Yahoo recognizes the need for change in order to survives the tough competition in internet business especially on the online advertising which is its’ bread and butter. So far Yahoo has not thrown any punches to its’ opponent, Google (Nasdaq : GOOG, quote), which happily eating up Yahoo’s portion of cake since day-one like a hungry “pacman”.

While Microsoft Corp. (Nasdaq : MSFT, quote) used its’ huge cash to launch MSN just to give some kids’ kicks to prevent Google from a smooth journey, Yahoo apparently just stood and bounced around without much fight. Microsoft never intend to build any serious threat to Google as it was happy with its’ desktop business which it almost monopolize. Steve Ballmer admitted Google’s success is primarily due to its’ business model. While at the same time claimed Google is not a direct competitor to Microsoft, Ballmer prevents his kids from using Apple (Nasdaq : AAPL, quote) iPod or Google.

In fact, if the recent business development were to goes by, both Microsoft and Yahoo have acted more like a “follower” rather than a “leader” in their respective business domain. Microsoft which saw the success of Apple’s iPod launch its’ own version of Zune while Yahoo follows the step of Google in leveraging on conventional media advertising recently.

BusinessWeek has suggested 5 steps to get Yahoo back on track:

  • Simplify the already cluttered Yahoo’s home page
  • Get new blood or transfusion in terms of new executive
  • Encourage free-flow of Creativity
  • Roll-out Panama fast – to compete with the Google’s unstoppable Adsense
  • Stop the ever-growing manifestos

But, will there be any new kid who can make revolutionary changes to the existing internet business and become the “New Leader“? Microsoft used to become the de-facto and claimed the in the near future there won’t be any newspaper as everything will be web-based – which didn’t happen. Then Yahoo came out from the dot-com boom to declare as the new hero in the internet search engine only to lose out to Google which silently created something simple but powerful enough to almost monopolize the search and online advertising business.

It’s a matter of time before someone innovates and changes the way business is conducted in the cyber-space with a better business model. Can that company be IAC/InterActiveCorp (Nasdaq : IACI, quote)? Does Ask.com has something up its’ sleeve in preparation to take over from Google? It shouldn’t be so hard to shake off Google as there’s no “Loyalty” within search engine and online advertising business. As long as you can provide something simpler, easier, faster, more efficient and with values than existing platform, you’re the “Winner“.

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