Alpha Tribes: Yahoo and Google- The battle of Internet Search

Industry: Internet Search

The Contenders: Google vs Yahoo!

The Winner: Google

Summary

Google is arguably the most successful company of the 21st Century and is unquestionably the leading innovator in its field. No organisation is perfect but Google rates highly as an organisation that intuitively understands how to manage the “wicked problems” of this Century and keeps the brand at the heart of everything it does.

Performance and Sustainability

Google, along with Amazon.com, has weathered the recession better than most other global brands, and has seen the value of its brand grow by over 20 per cent during the economic downturn. It has acquired over 50 companies, many of which are not in line with its original core area of search. The company has successfully integrated its acquisitions, which has resulted in Google entering new and unrelated areas.

Google is growing massively. From origins as a pure tech company, it has transformed into much more of a brand-based business focussed on innovation.   It is starting to become a truly consumer brand, leaving traditional competitors like Yahoo! in its midst and competing for the belief, market share and wallets of consumers against companies like Apple, Nokia and Microsoft.

Innovative Tendencies

Google’s main site is a great example of simplification and differentiation. Alongside companies such as Apple, it really does represent a business firmly in tune with the 21st Century, which has been successful in changing the way so many people live.

Whilst Google didn’t start the Internet search industry, as a new entrant it managed to break the rules that many existing players were conforming to.  You can put the company’s innovation down to the way it thinks rather than what it knows.  Innovators like Google are rule breakers.

Tribal Leadership

Google does things its own way and it’s not afraid who knows it. From the company’s tribal initiation practices of welcoming Nooglers to the tribe, to its well regarded Google employee cafe/restaurant, work out rooms, or its innovation free time for staff, Google’s success can be attributed to a brand, culture and philosophy that permeates the entire organisation. It motivates and engages and inspires all who come into contact with the company.

Tribal Influence

Harry Truman, the 33rd President of the United States once said that “Men make history, and not the other way around. In periods where there is no leadership, society stands still. Progress occurs when courageous, skilful leaders seize the opportunity to change things for the better.” In many ways Google epitomises progress and you can’t argue that it has changed things.

The very fact that it is common place to talk about the “Google Generation” indicates that the company has had a profound impact on the way people do things. When we talk about finding information, people ask “why don’t you Google it?” The belief that Google is the best place to find information seems to transcend boundaries.

With its purchase of YouTube, Google also now influences the economics of the music industry and has forced music labels to adapt the way they do business too.  Not bad for a search engine that grew from humble beginnings.

Product vs Brand Focus

Google’s success in the hyper-competitive markets it operates is largely based on the company’s ability to utilise its corporate brand to drive daily actions geared towards achieving its corporate mission, which has helped propel the company to success.

Authenticity/Magnetism/Honesty

The world’s biggest and favourite search engine owes much of its success to a simple rule: don’t be evil. Google has managed to create an enjoyable and authentic experience for everyone involved in the business, from users, employees, and investors.

The Loser: Yahoo!

Summary

In the early days of internet mass-adoption, Yahoo! was perceived as the go-to search engine. However, as a quirky young upstart called Google grew, Yahoo! missed opportunity after opportunity to consolidate its market-leading position. It is safe to say that this has led to some tough times for the organisation and its market share has crashed to a little over 6%.

Performance and Sustainability

When you compare Yahoo!’s performance to Google, Yahoo! inevitably comes up short.  But who doesn’t?  Yahoo! has been plagued by an identity crisis for many years – one minute it’s a search company, the next it’s not. There is considerable confusion about who the company is and what it wants people believe in.

The company’s proposed alliance with Microsoft demonstrates how desperate Yahoo!’s market performance has become – even if the alliance proceeds, the combined market share for Yahoo! and Microsoft will still be around 10%. With a market share of 85%+, Google will hardly be shaking in its boots.

Innovative Tendencies

Before Google came along, Yahoo! pretty much dominated the internet search world. Why has Google taken over? Google releases a phone and everyone gets excited – would the same happen if Yahoo! made a phone? “A phone’s a phone and they do the same thing don’t they?” Enough said!

Tribal Leadership

Yahoo! doesn’t understand, motivate and therefore cannot grow its tribes at the moment. It will spend vast amounts of money trying to create an army of followers but if the company had nurtured its tribe as it grew, it would cost them a lot less and the value would be more. By establishing a tribe that supports you, they will fight for your values as a collective rather than you fighting for their attention. Yahoo! is very much fighting for attention.

Tribal Influence

Does anyone remember when Yahoo! innovated? Or at least acquired innovation? Yahoo! innovated with search, its directory and helped launch the worldwide web.  But when was the last time Yahoo! innovated on anything instead of chased a market? If it is going to compete with the Google juggernaut, it is clear that the company needs to harness the power of its brand tribe and build that belief in the brand again.

Product vs Brand Focus

Yahoo! is still in the search game it helped create, but there’s little mention of its brand or the tribe it hopes to engage with. Any wonder why this company has been lagging so much?

Authenticity/Magnetism/Honesty

You could say that Yahoo! is genuine – whilst it tries to be more than it is, the company doesn’t seem to actively lie about its offerings or performance. Does the company have a marked differentiation in the market – maybe, but what is it?

When you talk about heritage and familiarity, Yahoo! has it in spades, but when you start to look at its business momentum, and if you ask the question whether it unifies and influences its brand tribes that becomes a very different story.  Authenticity has different meanings for everyone. To some, authenticity means simply staying true to oneself. To others, authenticity implies playing a unique positive role in the community. Whilst there may not be a universal definition, what we’re talking about here is the opportunity for Yahoo! to energise its community, both inside and outside the organisation, by giving them something to believe in. But for Yahoo!’s tribe, they first need to know what the company stands for.

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