PEST Analysis: Yahoo!
Political
Political
Legal regulations of Internet laws differ globally. Internet operators hope to harmonize global laws on Internet however, countries are consistent with implementing their Internet legal framework that is consistent with national policy priorities. Internet law issues can create greater challenge that Internet Jurisdiction which only fundamentally raises questions of whose laws applies to activity that takes place online ( 2004).
Online businesses, like Yahoo, face tough challenges of the legal policies of every country in which they operate. Even Internet jurisdiction has compromise businesses most tough challenges which are intensified with the struggle of conflicting regulations between different countries.
In addition, Internet companies have rage over struggles of regulating privacy on the Internet which was legislated by the Congress. Privacy is taken into public that tight controls should be done with information with explicit permission from the consumers. Internet companies together with the World Wide Web is obliged to implement privacy.
However, regulations on privacy on the Internet would rather harm the Internet operators as compliance with a patchwork quilt of state privacy laws is an unnecessary burden on Internet operators. The major significance of having the Internet is the ability of entrepreneurs and activists to reach a large market or audience with very low barriers to entry. There would also be freedom of expression and do business in the Internet. Though the dot.com bubble took this potential to an optimistic extreme, it nevertheless represents an important economic and technological innovation.
Different policies of different states would fundamentally make a tough challenge to Internet operators since internet connects people in different with also different policies. One state may have been more lax on privacy policies while other maybe tighter. Political activist, business operations maybe interfered with these different policies. It may be easier for Internet operators if the global policies are uniform, however countries are consistent with the appropriateness of their laws with their own national policies.
Moreover, with regulation in Internet privacy, the state may cut entire the opportunity of its people to access to an internet. Conflicting state laws only add to user confusion and make nationwide education efforts (by private organizations or government agencies like the Federal Trade Commission) more difficult.
Because of this infiltration of Internet technologies and the increasing use of the Internet, new issues arise that trouble those who used to comfortably manage information, knowledge and money flows. Governments must decide who has jurisdiction over borderless cyberspace, who can tax whom for transactions on the Web, and who is responsible when something bad happens.
“The Economist claimed that with Internet growth, international regulation has become more important than national regulation. An example of international regulation includes setting common rules for interconnection and licensing. The Internet will become more regulated as telephone networks become less regulated. A current example is the debate over how to manage domain names, the Internet's equivalent of a telephone number. As the number of commercial companies on the Internet increases, the arbitrary rules that differ among countries will become increasingly troublesome. Problems such as trademark and liability issues will arise. The Economist claimed that hunting around for somebody to hold responsible when the Internet conveys pornography or stolen intellectual property, the courts have often turned first to service providers.” ( 2000)
Economic
According to the American Institute of Certified Public Accountant (2006), “the U.S. economy has suffered some significant declines. The U.S. Commerce Department has reported declines that are consistent with a slowing economy: consumer confidence has dropped, plant closings and lay-offs have increased dramatically, profit margins for many companies have slipped and many dot-com companies have failed. Some economists predict a recession, which could result in further deterioration in internally generated cash flows and restrictions on the availability of capital.
“The Economist claimed that with Internet growth, international regulation has become more important than national regulation. An example of international regulation includes setting common rules for interconnection and licensing. The Internet will become more regulated as telephone networks become less regulated. A current example is the debate over how to manage domain names, the Internet's equivalent of a telephone number. As the number of commercial companies on the Internet increases, the arbitrary rules that differ among countries will become increasingly troublesome. Problems such as trademark and liability issues will arise. The Economist claimed that hunting around for somebody to hold responsible when the Internet conveys pornography or stolen intellectual property, the courts have often turned first to service providers.” ( 2000)
Economic
According to the American Institute of Certified Public Accountant (2006), “the U.S. economy has suffered some significant declines. The U.S. Commerce Department has reported declines that are consistent with a slowing economy: consumer confidence has dropped, plant closings and lay-offs have increased dramatically, profit margins for many companies have slipped and many dot-com companies have failed. Some economists predict a recession, which could result in further deterioration in internally generated cash flows and restrictions on the availability of capital.
Periods of economic uncertainty lead to challenging conditions for companies due to potential deterioration of operating results, increased external scrutiny, and reduced access to capital. These conditions can result in increased incentives for companies to adopt practices that may be incorrect or inconsistently applied in an effort to address perceived expectations of the capital markets, creditors or potential investors.
Economic trends, such as inflationary factors that may hinder the economy or consumer purchasing power, can have a strong influence in the Internet industry. In addition, the global market would be another lucrative market for the ISP industry because there may be cheap technologies provided by some foreign markets such as Europe and Japan. Higher tariffs or a devaluation of the dollar may reduce the consumer purchasing power, causing a shift in consumer buying habit that, in turn, causes revenue loss for ISP domestic companies and partners.” (2006)
Socio-cultural
Socio-cultural
Rapid increased of Internet usage affected the family values. It has been noted that kids are engaging more of their free time with the Internet which in turn reduces the communication among the family members. Internet can be addicting, to the point that it disturbs one's life and the lives of those around him.
In addition, Internet has caused great change in the way people in a society communicate. The Internet allows anyone with an idea, ranging anywhere from brilliant to insane, to communicate and gain an audience. The online medium holds inherent agency that puts the creation of Internet content into the hands of the masses. People now are more creative with the presence of this technology. However, Internet has also bad effects on the mind of the people. It may have made the people lives faster but it also it entails negative effects on people behavior.
Technological
Technological
The backbone of the development of Internet is technology. Technology can be beneficial but at the same time can be a source of creative destruction. Therefore, technology can create many threats and opportunities that must be considered in formulating strategies. Advancements in technology can affect an organization’s products, services, markets, and competitive position. It can also create new markets which can change the relative competitive cost positions in an industry and render existing products and services obsolete.
