interbiznet.com
Find out more
Got a news tip? |
Click OK to subscribe to our free print and email Newsletters
As a long time player in the newspaper industry,
Finnegan brings the biases and social networks of the newspaper industry more
squarely into play in our universe. While we can readily imagine the comfort of
a decision to lead off with a vested corporate insider for Yahoo's senior
management, we wonder if the idea doesn't add insularity while granting Monster
an incredible competitive advantage. We can imagine a good deal of smirking
around the halls of TMP as the stories of CareerPath, the recent CareerBuilder
coup, and the many botched newspaper investments are recirculated. Clearly, Yahoo envisions a traditional
classified advertising revenue stream that expands rapidly in the near term. The
proposition, we suppose, is that HotJobs sales calls will now include mentions
of Yahoo. What the players seem to have failed to recognize is that this is,
effectively, a new brand launching in a space with competitive branding
investments. An explanation is probably in order. Yahoo is an
incredible media brand with a great deal of traffic. Skippy is an incredible
peanut butter brand with millions of buyers. Neither Skippy nor Yahoo have a
meaningful brand in the employment space for several reasons that include the
historical lack of a product in the market and the absence of brand investment
in our unique universe. To make a product or service credible, there is some
traction available from brand extension. But, the proposition that Skippy or
Yahoo actually provide value remains to be proven in day to day combat. That
means that Finnegan is about to take on the chore of creating a brand that will
have to be built out of the equity of two existing brands. It's a rookie idea that will swallow more
investment than it returns in revenue in the short and medium term. To grasp
this better, ask yourself whether or not you think Daimler is going to invest
much in making the case that their Jeep brand is really an offshoot of Mercedes.
We think not. That's just not a good way to do brand management. Add this to the fact that CEOs who immediately
follow founders have an unusually short life expectancy and the raw
politicization of newspaper owned entities (can you imagine the recent
Headhunter coup in a real company?) and you have a recipe for a soap opera.
Unfortunately, Yahoo needs raw revenue. The newspaper's approach to the market is still
a rich kid's approach to toys. Even though the online marketplace has taken a
huge chunk of revenue away from them, they still behave as if it were a big
company problem. (What's a billion or two in revenue?) They have consistently
failed to understand the fundamentals of wealth creation and, as a result,
wasted Billions of dollars in the failed defense of their incumbency. There are
useful alternatives, but they build capital at early stage entrepreneurial rates
and thus fail as investment candidates. For Finnegan to succeed, he'll need to spend
some time with Richard Johnson and Dimitri Boylan. Their shirtsleeves management
approaches, including attendance at every career event and a working knowledge
of the sales development process will be foreign territory. Meeting Yahoo's
needs for cash will require growing the brand nearly independently of the new
ownership in spite of the fact that the Yahoo brand is so prevalent elsewhere. In the national marketplace, it's not a
Coke-Pepsi brand war. The silly people who claim this perspective have not
really digested Pepsi's ad budgets. It's a Coke - Yoohoo (the chocolate
beverage) brand war. Describing it as Coke-Pepsi assumes that the players share
a belief in advertising and have similar brand strength in the exact same
markets. Brand extension simply works better within markets than across them.
Jeep can introduce a new model more effectively than Daimler can imprint itself
even in the narrow automotive market. HotJobs is a better standalone play than a
Yahoo brand extension. The good news for Finnegan is that his skills in
navigating policy terrain will come in extremely handy as he manages the
conflicting messages from headquarters. It is extremely clear that he'll spend
nights dreaming about hiring a numbers oriented COO who drives sales.
TIRED OF THE "RESUME CRUSH" FROM ONLINE JOB POSTINGS? Try TrueCareers. Nearly 90% of our users have college degrees, and average 8 years of experience. Our candidates come virtually pre-screened, making your job easier, and getting you faster results! Click here for a FREE WHITE PAPER on "how to beat 'resume crush' when using online job boards." Or call a TrueCareers rep at 1-800-441-4046 today.
Copyright © 2013 interbiznet. All rights reserved.
|
Electronic Recruiting News
FEATURES:
ANNUAL REPORTS:
RESOURCES:
ADVERTISING:
Stocks We Watch:
|