ars which mean that the approach it uses in the US would not be the same as what it needs to use in the other regions where it is still growing its market share. This makes it sensible to separate the US business unit from those of other geographies. For an organization of its size with more than 13,700 employees division by function makes it easier to demarcate responsibility for revenue targets and expense management.
Yahoo demonstrates two strategies. In its dominant US market, the company is pursuing organizational renewal to reverse organizational decline and put the firm back on a more appropriate path to success. The company’s decline was largely due to over-expansion of its product line and inability to deal with shifts in consumer demand for platforms that are provided by its major rivals: Facebook and Google. Yahoo’s new CEO plans to do away with about 50 properties to enable the company refocus on its core business (Scott Para 1). According to the new CEO, Yahoo has been doing way too much of which only a few things were being done really well (Scott Para 5).
The second strategy that Yahoo is pursuing is growth through international strategy. Yahoo’s internationalization is for market-based reasons. Currently Yahoo is too reliant on its U.S. business. The company seeks to capture part of the market share of the growing middle class in emerging economies. Part of this international market development strategy will be through offering of country-specific services. So far none of these two strategies have been implemented long enough to evaluate whether they are successful or not.
Yahoo operates both within NAFTA (US, Canada, Mexico) and the European Union (Germany, Italy, Scandinavian countries etc.). Through its numerous offerings Yahoo is essentially a service-provider. NAFTA eliminated trade barriers in most service sectors and a couple of products as well. This reduction / eliminations of tariff increases trade within the region and hence