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Drucker had this idea of a "Business X Ray". Yahoo needs to apply that concept to the business: the most profitable 20% lines of business today and tomorrow nee
by pnathan 11y ago
Drucker had this idea of a "Business X Ray". Yahoo needs to apply that concept to the business: the most profitable 20% lines of business today and tomorrow need to survive: the other need to be axed; the money flowing into those 80% can be now redirected towards the profitable few.
What Yahoo has is breadth of platform: leveraging that can be done, but it will involve pay-to-play for consumers of the platform, something that is always taken badly by the freeloaders.
It's time for some hard decisions that won't sit well with ICs.
- PhilWright 11y agoAh, the classic 80/20 rule. 80% of the revenue comes from just 20% of your products. So your tempted to kill the 80% and become much more efficient. But the problem is that you can now apply the same rule to the remaining business. Do you keep reapplying until you only have a single product left?