Maria Lourdes C. Capilitan

Sysanal(O0A)

June 17, 2008

Case Study

Tim Brady

 (First Non-Founding Employee, Yahoo)

            The things I learn is even there’s no Big Boss around, a company can still run and be successful. In doing start up it doesn’t mean that you need to have a background to this field. You can learn things relating to start up while you are doing start up. Never think of quitting, know yourself and conversation to your business partner will help a lot specially maintain friendship.

Yahoo began last 1994 as a research papers of Jerry Yang and David Filo. This site turned to a start up. Tim Brady write a business plan for it. April 1996, Yahoo was introduced to the public. Jerry and David kept on adding categories to the site. Venture Capital recognized it and not just Venture also LA Times, AOL, and Microsoft. All of these companies want Jerry and David to join their company. Brady was encourage to give a business plan to them. Last February 1995 when Jerry and David started saying they badly needed Brady.

            March 1995, Jerry, Dave, and Dave’s friend, Donald Lobo and Tim Brady create a business plan as a final paper. Their strategy was creating a model for advertising. Form that time Wired magazine was online and they were selling advertising. Sadly, there was no search engine or direct selling advertising, so what they used is a basic business plan format with the idea of jerry and dave. They first did is to join a consumer electronics showdown in San Jose last M<arch 1995. In that show they are the only Internet Company. After the show, they moved to their new office in Mountain View.

            The main goals when they started were first, they want to get everyone on the internet. Second, they didn’t want their company to be bankrupt, they will do whatever they can do to avoid the closure of the company. They did a lot of things in addition to advertising to bring money to the company, like book deals. Their company is getting bigger and they think they are not the people, they search a CEO for a half a year. During those Six (6) months there was lot of opportunity like yahoo was given a link by Netscape whose only the browser by that time. They hired sales firm to help them to start in advertising, they sold five packages to different companies like Master Card, they got the first round of advertising. They put up graphics to yahoo. They create a graphic switch and advertising. They hired and build organization. They still have problems even though they are successful, they took a hard time convincing people to use it. Suddenly, internet become popular and every press were all over Jerry and Dave. Tim Koogle hired Jeff Mallett and hired his staff within 2 to 3 months. The directory button of Netscape becomes Search button. Excite bought the Netscape search button with their Venture Capital. Yahoo also bid because they think of their money will be returned. They worried for Excite and Microsoft specially when Bill Gates sent memo and said that his favorite site was Yahoo. The internet was growing fast. Their competitors are Lycos, WebCrawler, and AOL. Other internet companies start to spend time searching. Yahoo company search for their directory first.

            Their first year in doing start up was so fast, they don’t stop thinking. Brady don’t have any major problems occurred. They just missed hotmail. They have big dinner with Bhatia and Smith explaining but still Brady and Jerry still cannot understand how the system can be big. After being screwed they found no. 2 which is Rocketmail because of that Yahoo became bigger than Hotmail. The main idea of Brady and others to internet was it is a open system. If you didn’t find what you’re searching then they put links to their other competitors.

              The best thing that they did is when they brought Reuters online. They handle the issue about pornography by cutting all links to those site. The debate that they have are; first, speed, look and feel. Second, arguments about necessity of graphics. Third, their 8-year debate. There was no moment that he wanted to quit but there are times that they is upset. He’s 4 to 5 months was very risky because he thought of his decision was bad. The funniest moment that Brady remember is when there was a big storm last May 195 and power grid went down. They rent a power generator. They have meetings in candle light.