As Microsoft's bid for Yahoo of $45 billion seems to be too low, we ask, what will it take and why is Microsoft so set on obtaining the company? This deal could be one of the biggest deals in the technology sector and a major claim to the online marketing division.
Microsoft is obviously very concerned with Google obtaining a monopoly position in the market and it hopes to combat this threat by introducing a rival that can compete with the search engine giant. This also shows that Microsoft is struggling in its in-house strategy and is looking to re-focus and compete with companies such as Google.
Some say that if the two companies combine, then the combination of the captured audiences will put them on top. But is this necessarily true? Most web surfers rely heavily on google to navigate through every aspect of their online needs. Google has mastered the art of online marketing and when a company seeks to advertise or get a piece of the online market, Google is usually where they turn first. This dynamic of companies and consumers turning to Google first will be very difficult to interfere with. Even if Microsoft spends the needed money to obtain Yahoo, to actually break into the Google customer base will be a very difficult move. With Microsoft's difficulty in making a strategic plan to determine the direction the company wants to take or the direction they wish to focus on, it may be a struggle to enter the battle with Google.
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2 comments:
I found your post very interesting. Scary to think what the online advertising market has come to and just how much money is throw aruond between these companies in hopes of capatalizing on market.
It is creepy to think that someone would make a bid for such a huge company without there being any reason for it. To think that someone would throw about that kind of money is just scary since they could potentially pay the entire tuition cost of LVC for all current students in a single year.
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