There’s a critic!

IIPM: An intriguing story of growth and envy

Diptarup Chakraborty,
Principal Analyst, Gartner

This campaign by Yahoo is basically to attract and capture new users that are coming onto the Internet. I don’t think that this is to arrest people that are already using Yahoo! and its services. Talking about the logic behind the campaign, yes, it will help improve the brand value of Yahoo! but the critical fact is that I don’t think Yahoo! will exist over the next two years.

The brand has lost a lot of value and weight in the recent past, and this campaign only appears to be increasing the brand value of Yahoo! to make it more appealing and attractive to potential bidders. Questions are also being raised on why Yahoo! chose to invest in rebranding, instead of investing more on R&D and innovation. The reason is that innovation is a long-term process while branding exercises produce returns within a relatively shorter time period. Also, innovation is much more a risky deal compared to branding exercises. This therefore, justifies Yahoo’s act! Talking about how competition may react to this latest branding strategy by Yahoo!, I don’t think they will react at all. They are definitely stronger than Yahoo! is and two years down the line, I simply see this online war being a two-player game between Google and Microsoft. So this rebranding strategy may not be worth the time and money spent...

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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