Almost every week, I read another news article about how Yahoo is struggling.
As a user of Yahoo, since 1998, I can offer some foresight on how this has happened. Main reason why? They are fundamentally lazy.
Since the beginning, they have had others doing the work for them, and quit in the face of serious competition.
The core of Yahoo business, is it's search engine - always has been. Instead of developing maintaining, and updating this vital part of their business themselves, Yahoo has always relied on third parties to do it for them - and it shows.
Back when I first started using Yahoo, their search results were quite irreverent to what I typed in the search box. Today it has improved, however the relevance of it's search results lags far behind it's competition. Since the search engine hasn't improved much, no one wants to use it.
It's also kind of like night and day when comparing Yahoo of today, to the Yahoo of the 1990's . Back then, the folks were innovative, trying things that have never really been done before.
Games, a personalized page, stock quotes, photos, file storage, "Clubs", auctions, and much more made Yahoo a great place to hang out.
As time went on, "The Lazy Attitude" became more prevalent. Here are some examples I witnessed first hand.
Yahoo Auctions was a great experience -very innovative for it's time. When Ebay started to come into it's own, however, Yahoo decided it was easier to shut it down, instead of putting any effort into making it's auctions more appealing to users. At the time of it's closing, Yahoo Auctions had a larger account base, than Ebay.
Yahoo Photo and Yahoo Briefcase were both killed at the same time, when it was determined that it was too much of a hassle to maintain. It has been proven time and again, that photo related tech companies are quite lucrative. LINK
I just don't know how much longer Yahoo can last. Whichever new CEO Yahoo has this week, keeps claiming they want to turn around the company, yet Yahoo keeps dumping profitable assets, and not doing anything to improve existing ones.