When a 5 billion dollar sale is a bad thing!
So, Yahoo,
Just for perspective: Before you go on...
The issue with Yahoo was that they forgot how they got there, how you may ask? Through the innovation of consumption of products and services! I am not talking about innovation of a product, or technology or look but of the way customers consume those goods and services.
Apple did not invent taking your music with you in any way shape or form. Apple innovated the way people consumed music altogether. In fact, they have innovated the way musicians get their music to their fans, cutting out the record labels. Again changing the way customers get their goods and services.
The innovation of consumption of products and services is how Redbox killed Blockbuster. It made it so much easier to Rent and returned DVD's and added GAME RENTAL's to cover the entire at home digital entertainment industry. How will they innovate next, I would add streaming of Movies to their RedBox app, so you can speed up the process, or watch it while on the go. Adding the app to devices like Apple TV and Google TV will increase penetration of use.
My advice to stay ahead in business is to stay out of red ocean strategies "trying to beat the competition" and "Innovate" build blue ocean strategy. Blue oceans are "new ways for customers to consume and interact with your goods and services" allows you to stay ahead of your competitors, Innovation is more than a software update or new look or gadget. I have seen a lot of amazing companies and products that never make it.
Start looking for the way your customers consume your goods and improve on that. Google continue to do this, but with only a few of their LOB's, Because Innovation is hard to find, that take a vision from leadership and vision sometimes sounds crazy to the status quo.
Today I read a LinkedIN post, which read as follows about Yahoo. Copied word for word:
"1998: YAHOO refused to acquire Google for 1M
2002: YAHOO realized its mistake and offered 3B
Google requested 5B YAHOO refused.
2008: Microsoft offered 50B to acquire YAHOO YAHOO rejected the offer
2016: YAHOO has been acquired for 5B and the current value of Google is around 545B
Leadership can sometimes only be judged through the lens of the past. Though it seems like they were focused on their mission and believed in what they were doing, some times too much something good can be bad." By CEO of Practice Makes Perfect, Karim Abouelnaga -
I agree with Karim!