1. Has terrific online advertising capabilities.
The online opportunity is *still* a huge and growing one; we project interactive marketing will near $77 billion by 2016.
2. But it can't lock in on a focused corporate strategy.
This is Yahoo!'s greatest challenge: it is everything...a content company, an email engine, a database marketer, a publisher network, an ad server, an ad management platform, but with no overarching vision of why all of these things and how they fit together.
3. Lacks follow through.
The strategic initiatives that do get attention seem to come and go without any real fulfillment.
4. Is over-invested in its legacy business.
Besides Bartz, Yahoo! underwent significant leadership turnover -- in sales, marketing, product development, technology -- during the last three years.
5. Comes off bland.
This is partly its lack of strategic focus (see point 2 above), partly a communications issue -- it doesn't promote what innovations it does do.
6. Has no plan for The Splinternet. Yahoo!'s strengths lie in its display advertising business (not even so much search anymore). But the future is about user access to content and experiences across devices that may have unique formats, operating systems, user interfaces. Yahoo!'s future device plans are limited and its content expectation hinges more around the portal model -- users will come to Yahoo.com -- than syndication -- content will distribute in multiple formats into multiple environments.