Google should diversify, says Yahoo

Carol Bartz

When it comes to online companies, you can't get bigger than Google, therefore if you're dishing out business advice to the search engine giant, you better be sure of your facts. It is therefore surprising to hear that that is exactly what Yahoo's Carol Bartz has been doing, saying Google will have "a problem" if it does not diversify its business.

Speaking to BBC News, Carol Bartz said that Google would have to "do a lot more than search" and suggested that it would have to "grow a company the size of Yahoo every year."

Bold words, especially as a few years ago Google had almost completely destroyed Yahoo in terms of market share. However in recent months, Yahoo has come seemingly back from the dead under Bartz's new leadership. The change of direction saw over 2000 jobs cuts, but also saw profits surge by 300 percent.

Its $100m global advertising campaign in October 2009, also put them back on the map business-wise and with a network of sites and services, they have one of the largest sites in the world.

But does that mean, they can really advise Google? Google dominates 65 percent of the search market in the US while Yahoo only holds 17 percent, despite a recent partnership with Microsoft's Bing search system. Well, that's not going to stop Carol Bartz...

"Got to find other things to do"

"Google is going to have a problem because Google is only known for search," said Ms. Bartz.

"It is only half our business; it's 99.9 percent of their business. They've got to find other things to do. Google has to grow a company the size of Yahoo every year to be interesting."

While diversifying may have helped Yahoo in the short term, many have criticised Yahoo's broad range of services saying the company is 'too large', with too many sites and services. Say what you like about Google, but they are steam-lined.

Bartz also said that Facebook was a 'frenemy', and they could hold their own against the social giant and compete in the social market.

"They certainly are taking people's attention and time," she said. "But what is kind of wrong about the conversation is that social just means Facebook.

"Social is interaction. Social is commenting on news stories. It's blogging. It's sharing photos.

"So there are social capabilities running throughout all of our sites, including Twitter feeds and Facebook feeds."

Bartz also said she wanted Yahoo's new mobile application to focus on personalised and "hyperlocal information" for users.

"It's about what is going on in your local area," she said.

While one can't deny Yahoo have diversified, one can't really say they've been a success in any given market. They may be attempting to be a jack of all trades online, but thus far they are a master of none.

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Timon Singh

Timon Singh is a graduate of Liverpool University where he received a degree in Social and Economic History. He has previously worked for BBC Magazines on BBC Who Do You Think You Are? Magazine, the publication for the popular genealogy show.

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