With the news breaking this morning that Yahoo will reportedly layoff hundreds in an effort at retaining profitability. WOW. What caused this, in an industry that is generating a stagggering increase year after year in advertising revenue? How can you have layoffs in such a great environment?

Here’s my take:

This is a CLASSIC example of a large company losing focus. I mean sure, we are a search engine, but we are a portal, I mean, but we are free email, I mean  but we are all about connecting people. WHAT?? They didn’t really WIN at any of those other things before attempting to expand.

Meanwhile, the librarian (Google), has focused primarily on being a search engine. Look at their website. (Yeah, that’s all Google is is a website…but they have become a VERB…you Google something.) Their interface is clean and simple. Want something? Google it. We’ll give it to you FASTER and MORE RELEVANT. Spot on what you need and when you need it.

Meanwhile Yahoo has been beleiving the hype of their own marketing campaigns that 2nd place is good enough. It isn’t in today’s internet.

But you say, well…Google has added many other companies as well (YouTube, etc.). They puchased DOMINANT entities that have created VALUE that have SYNERGY with their MAIN focus –being a search engine. Subtle, but critical difference.

FOCUS is the key. Google, as librarian to the world has succeeded in providing the best and most relevant answers to Title, Subject and Author related queries and has won the hearts and minds of consumers in the process.

Yahoo is neither a great librarian, nor a great email platform, etc, etc…Jack of all trades and master of none.

There’s a lesson to be learned there with online marketing. Focus. Focus. Focus. Find a niche and DOMINATE it. Just my opinion.