Intersection of S-Curves and Disruption: Yahoo vs. Google

Case Study

The competition between Yahoo and Google represents a classic example of technological disruption where an established company was outpaced by a more innovative entrant. Yahoo, once a dominant force in the internet search engine market, was overtaken by Google through superior technology, innovative business models, and strategic execution. This case study explores the rise and fall of Yahoo, the emergence of Google, and the broader implications for innovation, market strategy, and consumer behavior.

Historical Context

The Rise of Yahoo

Before Google’s emergence, Yahoo was a leading player in the internet search engine market.

Key Players

• Yahoo: Founded in 1994 by Jerry Yang and David Filo, Yahoo quickly became one of the most popular web portals and search engines.
• Other Competitors: Early competitors included AltaVista, Lycos, and Excite.

Market Dynamics

• Portal Strategy: Yahoo’s business model was centered around being a web portal offering a wide range of services including search, email, news, and more.
• Advertising Revenue: Yahoo generated revenue primarily through banner advertisements and…