Story: Finding the why in Microsoft-Yahoo

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Innovation is still key to online success

"Neither it nor Yahoo has been stellar in innovating online of late, and their combined force is showing no signs of changing that. But now, it doesn't have to."

If this is Microsoft’s attitude then they’re in for a big shock. Yes they’ll have the biggest audience online, but over time, that audience is worthless if you don’t give them a reason to keep returning.
Unlike their desktop offerings, Microsoft can’t tie online users to its services and for every service they offer, there's an alternative.

In a similar scenario; before Myspace, Friendster was the leading Social Network, as soon as myspace offered something attractive, everybody forgot about Friendster. In recent times, that cycle looks like repeating itself with Facebook now putting Myspace on the back foot.

Google relies on its search algorithm and ad software to maintain its position. They keep innovating because they know an audience can fizzle quickly if something better came along.

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