Tuesday, February 15, 2011

If You Can't Beat Them, Join Them.

WSJ Video
I have included this WSJ video that gives insight to the affect of Facebook on companies such as Yahoo. 

Facebook has become a huge social networking scene that had been catching not only the attention of the general public, but also of different corporate companies. Yahoo for example is trying to incorporate Facebook tools onto their website. They have seen a 10% decline with their users and are being affected by the various Facebook capabilities. They have now incorporated a Facebook 'like' and 'share' button onto their Yahoo site in order to have people share their Yahoo sites via Facebook.
Yahoo considers their relationship with Facebook as a 'Frenemy', which is part friend, part enemy.

"The friend part is that Yahoo has stopped trying to get people not to go to Facebook and decided it was better off enabling that, largely because it didn't have a real choice" -WSJ

The CEO of Yahoo called Facebook its top competitor. They do not feel that they can 'beat' Facebook, so they are using Facebook as a way to get more promotion. Do you think that this is a good idea? Will this encourage more Yahoo users?

In Response to Nicole Perry

There may not be any rules in business but morally there may be.  Do you think this stealing strategy is right in your mind?
What Nicole is talking about here is Mike Vitone's plan to take business away from his competitor E&R. The question at had is if it is moral to plan ahead of time to steal business away from a competitor. I agree that it seems a bit harsh to want to 'steal' business from others. However if Mike wants to become profitable or make Campus Mom become more well known, that may be what he has to do. If he offers lower prices than his competitors he will be likely to steal away some of their business. Like he said in his presentation though, that may not be as easy as it sounds. If he remains at Keene State or at public colleges he knows that he will not have a profitable business in the long run, so I believe his only chance is to have him 'steal' away the private school business. I wonder if there are other ways to get business without having to steal it away? Maybe working in an area that doesn't have this service? Or with different businesses?