Innovations in the Healthcare Services Industry in India

In spite of total revenues going up from US$ 5257.67 million in 2005 to US$ 6425.68 million in 2006, Yahoo's net income fell from US$ 1896.2 million to US$ 751 million (Refer to Exhibit I for Yahoo's Income Statement between 2001 and 2006). According to analysts, the problem was that Yahoo was not focusing on any particular product, but was trying instead to cater to different customers through a single portal. Though Yahoo acquired several companies, it failed to integrate them. Even in search-related advertising, which had emerged as a major revenue generator in the Internet business, Yahoo fell behind its competitor Google, which was generating twice as much revenue on each search ad.

Yahoo's problems were reported widely in the media. At the same time, The Wall Street Journal⁸ published an internal memo that was circulated by a Senior Vice-president at Yahoo, about the lack of focus in the company due to which its resources were thinly spread across several business segments.

Within a month, Yahoo introduced a new organization structure, under which the company was reorganized into three operating units, namely the Audience Group, the Advertiser & Publisher Group, and the Technology Group with the focus on the customers, advertisers, and technology.