There has been alot of talk recently with respect to Yahoo and why it did’nt take the money and run as well as why it is doing a deal with Google. Well Yahoo seems to feel that a deal with Google would be beneficial to the immediate bottom line. This is of course true but the long term effect will be the demise of Yahoo as a powerhouse on the internet.

I see the deal as a total score for Google as it has the upper hand in negotiations and can set terms for its benefit. I think that Yahoo should go it alone and restructure its engineering teams into smaller workgroups. Each workgroup should get assigned a product either new or existing to work on with a focus on total integration in mind.

The marketing and sales teams should change their current marketing strategy and focus on developing markets where they can gain ad revenue and push their product to the consumer.

What many don’t realise is that in reality Google is not the interent and most of the world does not use Google. The US market is the largest market for Google both in terms of revenue as well as search. That leaves the rest of the planet open to target.

A good example is Baidu.com which is king in China. Why you may ask ? Well they localise their product designed around consumer in that region. This should form a core part of the sales and marketing strategy. In essence, they should take it back to people. People actually decide who is king on the net. Create brand awareness and encourage developers to build on the Yahoo platform. Incentives are a great way to entice those developers.

In any business money talks and user expierence helps grow that revenue, so do sampling from the developing world and see what they like, what they want to see and how Yahoo can give it to them.

Like a good politician go to the masses and woo them. Take a page out of Obama’s workbook to see how it is done. Perception is 99% the battle won.

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