YAHOO TO BLOCK FACEBOOK AND GOOGLE
7th March, 2014
Related News: News
Yahoo has this week announced that it will prevent customers logging into its suite of products using Facebook and Google accounts. Starting with services such as Flickr and Fantasy Football and rolling out to others, services will no longer be accessible using the alternative login functionality, currently popular and widely available on the World Wide Web. We take a look at why this is and what businesses can learn.
By Zafar Jamati
Part of a major redevelopment campaign to get the company back on track, CEO Marissa Mayer, who was appointed in 2012, has certainly made some bold decisions. From a commitment to mobile, injecting fresh new talent into the company and buying social networking platform Tumblr, her decisions have turned the previously ailing company around, increasing share price by 100%, in just 18 months.
Her decision to block Facebook and Google account logins then can't have been made lightly. The principle reason, it seems, is to encourage use of Yahoo's own email and account credentials. However, the move certainly won't aid user convenience, facing stiff competition from Facebook and Google's easy to use alternative logins.
So what's the big deal? Here are some key reasons why we think this is a good move if the company is to continue returning to growth:
Control - By gaining direct access to user data, Yahoo will simultaneously gain control of this data, using it for better targeted campaigns by looking at trends in user browsing behaviour and improved marketing automation by monetizing big data.
Competition - By gaining control, Yahoo can put itself in a better position to compete against the likes of Facebook and Google. Although those web giants have the infrastructure and market share, by defining its space, Yahoo can hope to take back some of this market share.
Capitalise - Once this strategy begins to take effect in the profit margins, this can be reinvested for growth and innovation. By becoming an innovator, Yahoo can hope to return to its glory days; those early years of the Internet when Yahoo dominated.
However there are risks involved. They lie in customer acceptance and adoption of the new systems. It is by no means an easy feat, but then neither is returning a 100% share price growth on a multi-billion dollar company in 18 months. We look forward to seeing what becomes of this strategy and wish the company the best of luck!
So do you think this is a sound strategy or is Yahoo destined for the technological chasm? What impact will it have on technology PR? Let us know in the comments section below!
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