Google is the unlimited source of information we all turn to in times of need. Founded in 1998, Google has been striving for its mission to organize the world‘s information and make it universally accessible and useful. Since then, Google has grown by leaps and bounds. From offering search in a single language they now offer dozens of products and services—including various forms of advertising and web applications for all kinds of tasks—in scores of languages. And starting from two computer science students in a university dorm room, they now have thousands of employees and offices around the world.
As one of Google’s millions of users, I log on to Google if I need any information, from an English word I don’t know to a textbook for my next semester, from which restaurant I should go for dinner to the cheapest air tickets for my next vacation… Google is my handy tool even I am on the road. However, I noticed recently I will go to Yelp when I look for local information. I found the information on Yelp is more reliable. For example, I was desperate to make an appointment with a close by hair salon before an interview. I went to Google and typed ‘Salon Milpitas 95035’ and found several Salons however I could not find out which one meets my needs. I checked on Yelp and found a perfect salon after I read reviews there.
Yelp (www. Yelp.com) is a website that connects people with great local businesses. Yelp was founded in San Francisco in July 2004. Since then, Yelp communities have taken root in major metros across the US, Canada, UK, Ireland, France, Germany, Austria, The Netherlands, Spain, Italy, Switzerland, and Belgium. Yelp had a monthly average of 61 million unique visitors in Q3 2011. By the end of Q3 2011, Yelpers had written more than 22 million rich, local reviews, making Yelp the leading local guide for real word-of-mouth on everything from boutiques and mechanics to restaurants and dentists. On average, more than 5 million monthly unique visitors relied on Yelp Mobile applications in Q3 2011 to help them make a spending decision on the go. Yelp filed registration statement for proposed IPO Nov. 17, 2011. Here is Yelp’s factsheet. http://www.yelp.com/html/pdf/Snapshot_Q3_2011_en.pdf
I looked at Yelp from the following angles:
Business Level Strategies
· Should Yelp compete?
· What is Yelp good at?
· How does Yelp compete?
Corporate Strategies
· What business is Yelp in?
· Where does Yelp make money?
· What should Yelp be in?
Here is Yelp’s SWOT Matrix.
Yelp | ||
SWOT Matrix | ||
Strengths | Opportunities | |
1. Brand Equity | <-Match-> | 1. Expanding profit-making opportunities |
2. Innovative initiatives | ||
3. Comprehensive product mix | ||
4. "Surprise" | ||
<-- | <-- | |
Convert | Convert | |
Weaknesses | Threats | |
1. Currently have products that | 1. Concerns from investors | |
customers don't even realize exist | 2. Possible peak or saturation of smaller | |
2. Not focusing on customer | and less-used product markets | |
"Community" as core competency | ||
Yelp’s purpose is to connect people with great local businesses. Local businesses in U.S., especially small businesses, represent more than 99.7 percent of all employers and create more than 50 percent of private gross domestic product (GDP). That is how Yelp gets its revenue. Here is the summary of how Yelp’s products bring Yelp revenue.
Things You Should Know About Yelp
1. Yelp was founded in 2004 to help people find great local businesses like dentists, hair stylists and mechanics
2. Yelp had an average of approximately 61 million monthly unique visitors in Q3 2011
3. Yelpers have written over 22 million local reviews
5. Every business owner (or manager) can setup a free account to post photos and message her customers
6. Yelp makes money by selling ads to local businesses - you'll see these clearly labeled "Yelp Ads" around the site
7. Paying advertisers can never change or re-order their reviews
8. Yelp has an automated filter that suppresses a small portion of reviews - it targets those suspicious ones you see on other sites
9. You can access Yelp via iPhone, Android, BlackBerry, and more - see the full list of mobile apps here.
10. The Weekly Yelp brings locals updates on the latest and greatest business openings & other happenings.
Yelp is not yet one of Google’s competitors (Yahoo, Ask.com, WPP, PayPal, MSN, etc), however 3 top executives, from Jeremy Steoppelman, Co-founder and CEO to Geoff Donaker, COO to Rob Krolik, CFO at Yelp, have experience working at eBay. Yelp is an Innovative, technology-centered global company. With Yelp’s growth trend since 2004, it is a strategic planning for Google to have Yelp on the same side of the table instead of the other side of the table.
In Summary, Yelp is on a healthy growing path and it is a well worthy company for Google to acquire in order to expand the depth of Google products.
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