Yahoo! vs. Google...

There is a tremendous amount of focus right now on the product development and acquisition activities at Yahoo! and Google. Actually, the entire internet sector is experiencing a bit of unchecked growth right now.

(Want to dispute this claim? First, be prepared to explain how funding a 6th grader with millions of dollars is not the epitome of unchecked growth.)

Lets dig further into Yahoo! vs. Google:

Here is a list of acquisitions for both Yahoo! and Google.  Study these lists and then return to read the rest of this post.

These companies are both pursuing a growth strategy but in very different ways.  Google is powered by thousands of engineers.  These folks are focused on creating algorithms that will organize the world's information.  Yahoo!, on the other hand, seems focused on creating a social platform that will allow the world to organize its own information.

Who will win?  That's impossible to say.....there is probably room for both strategies.  In the short term, Google will prevail.  An algorithmic (is that a word?) approach to organizing information is much more likely to yield results quickly.  However, an approach based on peer information is a long term bet that may place Yahoo! on the top of the heap.  Using a real world example, are you more likely to buy a product based on its search engine ranking (the Google algorithm approach) or a recommendation from your neighbor (the Yahoo! social approach)?

Marketing 101 says that word of mouth has the upper hand.