Technology

Dismal Yahoo News Of The Day and The Power Of A Name

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The Layoffs have Started.  Meanwhile, Yahoo is countersuing.

Honestly, I can’t see any reason for Yahoo to continue as anything else.  Their refocusing doesn’t make a lot of sense to me, I don’t see a plan, and I can imagine they’ve annoyed the bejezus out of people with the lawsuit.  What’s left?

However I’d add this – even if Yahoo does have a plan, a winning strategy, something that will work, there’s one barrier that really is holding them back.

The name.

Yahoo used to be cool.  It used to be a big thing.  Then they slipped, and everyone else came in and, well . . . you know the rest.  Yahoo is now laying people off and suing other successful companies, and people are just feeling sort of angry/sorry for them.

The name Yahoo now means “failure” (and a rather drawn-out, lashing-out failure at that).  There’s little chance Yahoo can get over that.

So, oddly, I think Yahoo’s best chance, whatever their other plan, is to acquire/partner up with some others and form a newly-named business to get the hell away from their name.  That may be enough psychological boost – and a good branding exercise – to help good plans be realized.

That requires good plans, but even they will have to overcome the name problem . . .

– Steven Savage

(Oh, and I maintain my “only apply with the utmost caution to Yahoo” stance.)

 

Groupon A Target For Shareholder Legal Action?

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There’s serious concern it is, especially with it’s accounting practices – and the fact it’s “revisiting” numbers, which is crashing the stock.

I’d be nervous, and though I know they’ve been hiring, approach them with caution.  Groupon’s really had that “too good to be true” vibe for awhile, and now that shareholder legal action is being tossed around, that’s a big red flag.

– Steven Savage

Best Buy Layoffs and A Sign Of The Future?

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Best Buy Lays off 400+ people, closes stores.

I know, I’ve been of the opinion Best Buy is in trouble.  I’ve agreed with those various analysts on the issues.  So on the surface, the fact I’m not surprised by this is, well, not surprising.  I figured it was coming.  In fact, I figure more will come.

But what is interesting is how Best Buy seems to be putting more focus on Best Buy Mobile, smaller, “Kioskesque” stores.  A focus on smaller stores, more on mobile and related gadgets?  There’s a lot to that . . .

  • First of all, this seems like a viable strategy.  Focused, organized, standardized stores that are small and cheaper to run make sense.
  • Secondly, these stores could be easily resupplied from a central location (suggesting to me that, much like the Safeway delivery service, stores could serve as warehouses).  This could mean big stores being repurposes may be a logical focus (and may limit layoffs).
  • Third, these smaller stories could get more easily set up or torn down as needed.  Limited risk, faster adaption, and faster to take on rivals.  These stores could even be piloted easy.
  • Fourth, and this may seem out there, but in an age where you have vending machines with iPods and DSes in them, I could see experiments with a Best Buy vending system.  If we’ve got automated convenience stores, Redbox, and iPod dispensers, this isn’t too outrageous.  Oh, and it’s 24/7 . . .

– Steven Savage