Lessons from Microsoft’s Big Bid
February 13th, 2008 by thanhHeadlines on Microsoft’s $44 billion bid to buyout Yahoo almost read like a melodramatic love triangle between Microsoft, Yahoo and Google.
• Microsoft wants to win over Yahoo to compete against Google.
• Google calls Microsoft’s move a mockery of the Internet’s “openness and innovation.”
• Yahoo re-evaluates its worth. Says Microsoft undermines Yahoo’s value and rejects the offer.
• Does Microsoft feel scorned and defeated or is it biding, waiting for the next opportunity?
It’s a good thing marketers can take away several lessons from this tangled Web.
1. Alliances are healthy, but not at the sake of individuality: Companies are merging left and right, leaving great power in the hands of a few. If this trend continues, consumers will fall into the umbrella of one big corporation and individuality will be stifled. Marketers should work to preserve uniqueness and innovation. Consumers need a variety of products, services and experiences to fit their individual lifestyles.
2. Always, always keep your stakeholders informed: Yahoo Chief Executive Jerry Yang sent a message to employees, assuring them that leaders are trying to avoid a Microsoft acquisition. It’s important to keep employees and stockholders informed of the company’s position on major issues. When internal communication breaks down, the business could very well crumble with it.
3. A little “shock and awe” can up the ante. Microsoft’s bid made big news, and in the wake of the offer Yahoo’s share price rose 1.48 percent. Shaking up the marketplace can have positive or negative effects. Sometimes the market calls for a little (or big) change in order to re-shape the landscape for competitors and consumers. Here’s when it pays to be prepared no matter what side you are on. Always periodically evaluate your internal strengths and weaknesses and external opportunities and threats. You don’t want to be in for too big of a surprise.
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