Category Archives: Technology

Sharing – Missing Link for Yahoo?

 

Have you ever wondered why social media companies like Facebook, Twitter, Instagram, Linkedin etc. found great success?  When I was reading an article about Yahoo’s (YHOO) financial earnings for Q4 2013, I started to wonder why Yahoo has yet to breakthrough and yield profits.  Yahoo (YHOO), led by Marissa Mayer, has made some bold moves.  In Q4 2013, it sold more ads than ever before, yet still did not meet its projected earnings.

Yahoo 2014 Earnings

Of course, I’m sure Yahoo’s CEO, Marissa Mayer has plans to increase earnings for the quarters ahead.  The article “Is time running out for Marissa Mayer?” in Fortune Magazine, talks about the grumbling from investors that the expectations for Mayer to turn Yahoo (YHOO) profitable has been heightened and that the “Honeymoon period” is over. The heat is on.  While other Tech companies like Google (COOG) and Facebook (FB) has seen tremendous increases in their shares, Yahoo is seeing things go in the other direction.

I started theorizing and observed the companies listed to identify a trend.  What I concluded (I may be wrong here) is that the other companies have one thing in common and that is to have their own sustainable social network where information can be shared seamlessly, simply through a click of a button.  Valid, observation?

Let’s take a look:

Forbes

From Forbes’ Magazine

From FastCompany
From FastCompany

From Inc.com

From Inc.com

From CNN

From CNN

 

These images are just screenshots that I’ve taken from various websites that I often visit.  Notice, Yahoo is nowhere to be found as an option to “Share“.  Now, am I saying that if you want your company or business to grow you must have a “Share Button“, NO.  What I am saying is Yahoo may be potentially missing out on opportunities simply by not having a social network backing up its’ robust data to be shared with the rest of the world.

So let’s take a deeper dive into why “Sharing” is such an important part to our civilization.

We’ve all heard about the 6 Human Needs in the human psyche.  Tony Robbins really drove the importance of these key basic needs. According to Tony Robbins, all human being possesses these basic needs.  The hierarchy of these needs is based on each individuals’ perspective on its level of importance, but we all possess these needs.

6 Human Needs:

human-needs

To get to the point, notice that Contribution and Connection owns 33% of the 6 basic human needs. That is a very important key factor and is sizable enough to consider looking into.  Here are some facts that I pulled from an article called Seven Ways Sharing Can Make You Happy” by Julie Suttie:

– “Sharing can cause the release of oxytocin, a hormone that increases feelings of well-being. Paul Zak, founding director of the Center for Neuroeconomics Studies at Claremont Graduate University, studies the effects of oxytocin in social exchanges. His lab has found that when people share and experience gratitude, or any sense of connection, their brains will release the hormone oxytocin. Though more commonly associated with breast-feeding, oxytocin is also known to relieve stress, improve immune function, and foster trust in human interactions, all of which contribute to greater well-being and happiness. In laboratory studies, Zak has found that a dose of oxytocin will cause people to give more generously and to feel more empathic towards others they come across, with “symptoms” lasting up to two hours. And those people on an “oxytocin high” can potentially jumpstart a “virtuous circle, where one person’s generous behavior triggers another’s,” he says.

Surprisingly, even when sharing involves an exchange of money or where communication takes place over the internet––a common situation with commercial sharing sites––oxytocin is still released. In one study, Zak found that 10 minutes of tweeting induced a spike in oxytocin and a reduction of stress hormones in his subject, a reaction similar to what one might experience during in-person communication. Many sharing sites, he argues, do double duty, connecting people on-line and then having them meet in person to exchange goods or services. “This suggests why sharing is so ‘sticky,’” says Zak. “It makes us feel good in two ways.” –

While, Google, Facebook, Linkedin, Twitter all drives Contribution and Connection, Yahoo has yet to come up with a system that fuels what their “competitors” already has; a social network that allows people to share, seamlessly.  There has been talks that Yahoo is in process of acquiring Tomfoolery to help build out the “missing link”.  Even wireless companies like T-Mobile (TMUS), has invested into Social Networking.  T-Mobile US CEO, John Legere announced its iM5, the “DO IT” Social Network, during CES 2014.

What do you think?  Other than the recent data breach that Yahoo just experienced, maybe adding Social Networking to their business model would give them the boost they need to be a strong contender in an already competitive environment?

By the way, want to get a kick of “feel good?” just make sure you share this.

~B.H.

 

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