Yahoo! Inc

Premium members report, featuring a concise PESTLE, Porters Five Forces, 5C, MOST, 7Ps, CATWOE and SWOT

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This analysis of Yahoo! Inc is part of our coverage of the world’s 10,000 largest companies.

Premium members have exclusive access to this study on Yahoo! Inc, including the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porter’s Five Forces (concise), MOST analysis, and more.

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Company Description

Yahoo! Inc is an American web services provider and tech company headquartered in Sunnyvale, California. Founded in 1994, Yahoo! provides web services and products to users in a variety of markets, including search, content, communication, and digital media. Its main products and services include Yahoo! Search, Yahoo! Mail, Yahoo! Messenger, Yahoo! Finance, Yahoo! News, and Yahoo! Answers. The company serves both consumer and business markets in over 30 languages, making it one of the largest web services providers in the world.

Industry Overview

Yahoo! Inc is primarily involved in the digital media industry, with a total market size of around $145 billion in the United States. This industry is composed of over 4 million employees located in the US, the UK, and other countries around the world. The majority of these employees are based in the US, with around 2.5 million employed in the digital media sector. This industry is growing rapidly, with the number of employees increasing every year.

Industry Classification

In terms of formal classification, Platform Executive has tagged Yahoo! Inc as a business operating within the Technology industry.

Major Products & Services

The main products and/or services commercialised by this business include:

  • Yahoo Search
  • Yahoo Mail
  • Yahoo News
  • Yahoo Finance
  • Yahoo Sports
  • Yahoo Entertainment
  • Yahoo Answers
  • Yahoo Groups
  • Yahoo Shopping
  • Yahoo Travel
  • Yahoo Autos
  • Yahoo Maps
  • Yahoo Games
  • Yahoo Messenger
  • Yahoo Video
  • Yahoo Small Business
  • Yahoo Advertising Solutions
  • Yahoo Mobile
  • Yahoo Smart TV

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Competitive Landscape

Yahoo! Inc operates in a highly competitive environment that is constantly evolving and challenging. The company faces fierce competition from other internet giants and technology companies, as well as emerging start-ups. These competitors offer similar products and services, such as search engines, email services, and online advertising platforms. In addition, Yahoo! Inc must also compete with social media platforms and online entertainment providers for user engagement and ad revenue. The market is highly saturated, and innovations and changing consumer preferences make it difficult for Yahoo! Inc to maintain its position as a leading internet company. The company must constantly adapt and differentiate itself to stay ahead of the competition.

Key Competitors

We have identified the following organisations as being key competitors:

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Key Stakeholders

Stakeholders are individuals or groups affected by a business's actions. Understanding their needs helps a business make decisions that benefit all parties.

Internal and external stakeholders include the following:

1. Shareholders: Investors who have purchased shares in Yahoo! Inc's stock.

2. Customers: The people who use Yahoo! Inc's products and services.

3. Employees: The people who work for Yahoo! Inc.

4. Suppliers: Companies that provide Yahoo! Inc with the products and services they need to operate.

5. Government: Local, state, and federal governments that regulate Yahoo! Inc.

6. Media: Journalists and members of the media who cover Yahoo! Inc.

7. Partners: Companies that collaborate and partner with Yahoo! Inc on various projects.

8. Competitors: Other companies in the same industry as Yahoo! Inc.

Customers and Cohorts

The main customers of the organisation include:

  • Business customers
  • Individual users
  • Government agencies
  • Educational institutions
  • Non-profit organisations
  • Small and medium enterprises (SMEs)
  • Enterprises and corporations
  • Media and advertising partners
  • Mobile users
  • Social media users

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Experienced Leadership: Yahoo! Inc. has a strong leadership team with decades of experience to help lead and guide the company in the right direction.

Diversified Business Model: Yahoo! Inc. has a diversified business model that allows it to capitalise on multiple revenue streams, including advertising, search, e-commerce, and content delivery.

Global Presence: Yahoo! Inc. has a global presence with offices in over 30 countries and provides its services in multiple languages.

Innovative Solutions: Yahoo! Inc. has a long track record of developing innovative products and services to meet customer needs.

Strong Brand Recognition: Yahoo! Inc. has a strong brand that is recognised around the world. The company has leveraged its brand to create a loyal customer base and a strong position in the market.

Market Trends

Market trends can significantly impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and ultimately affecting the organisation’s ability to remain competitive in the market. Staying ahead of these trends enables businesses to proactively adapt their strategies, mitigate risks, and capitalise on emerging opportunities.

As part of this study, we have identified a number of potential trends that could impact the organisation. These include the following:

Market Trends

Key Performance Indicators

Key Performance Indicators
KPIs (Key Performance Indicators) are important to a business such as Yahoo! Inc as they help measure progress towards achieving organisational goals and objectives. They provide a useful insight into the performance of different areas of the Yahoo! Inc business and therefore enable informed decision-making.

KPIs also help to motivate employees towards achieving targets.

Below is a list of Key Performance Indicators we deem relevant to this company:

Brand Strength

Brand strength is more than a logo or name. It reflects a company’s reputation and how it is perceived by customers, investors, and employees. It is built on core values, mission, and a unique selling proposition (USP) that differentiates the business.

Brand strength goes beyond superficial elements and taps into core values, the defined mission, and unique selling proposition (USP) of a company.

Below are key reasons why brand strength matters:

Trust and Credibility: In a market flooded with choices, customers gravitate toward brands they trust. A strong brand signals reliability and quality, fostering customer loyalty. Loyal customers not only make repeat purchases but also advocate for the brand, driving word-of-mouth growth.

Brand Strength Analysis

Differentiation: A strong brand helps a company stand out in competitive markets by clearly communicating its value proposition. It creates a unique identity, establishes a competitive edge, and positions the company as a leader in its industry. For example, Google is synonymous with internet search.

Customer Loyalty: A positive brand experience builds emotional connections, making customers less price-sensitive and willing to pay a premium. Loyal customers generate repeat business and act as brand ambassadors, reducing customer acquisition costs and boosting long-term profitability.

Talent Acquisition and Retention: A strong brand not only attracts top talent but also enhances employee morale and engagement. Employees who identify with a reputable brand are more motivated, productive, and committed, driving better business outcomes.

Benchmarking Brand Strength

Below is a guide as to the scoring mechanism used to gauge the brand strength of this company:

A

The company enjoys an excellent level of brand strength.

  • This score signifies that the company has developed a highly regarded and well-recognised brand.
  • Customers and the wider community perceive the company as trustworthy, reliable, and superior to competitors.
  • The company enjoys a strong connection with customers, who actively engage with and advocate for the brand.
  • The company's brand effectively communicates its unique value proposition.
  • The corporate attracts and retains top talent, and its reputation extends beyond its target market.
B

The company has a good brand strength, indicating that it has a solid and respectable brand presence.

  • Customers generally have positive perceptions of the company.
  • While the company may not be as distinctive or well-known as the top brands, it still differentiates itself from competitors and enjoys a loyal customer base.
  • The brand inspires some level of customer engagement and advocacy.
  • The company attracts top quality employees and maintains a good reputation. People want to work there.
C

The business has an average brand strength, meaning it is neither strong nor weak in the marketplace.

  • Customers perceive the company as ordinary or run-of-the-mill, lacking an emotional connection or distinctiveness.
  • The company faces challenges in standing out among competitors and needs to better communicate its proposition.
  • Decent level of customer satisfaction, but significant there is room for improvement in terms of brand loyalty.
  • The company's reputation is neither a huge positive, or negative.
D

The company's brand is quite weak. Work required to increase its potential.

  • Customers have mixed or negative perception of the company, associating it with average or below-average quality.
  • The business struggles to differentiate itself from its competitors and lacks a compelling value proposition.
  • Customer engagement and brand loyalty may be minimal, requiring some effort to improve the brand experience.
  • The company's reputation may have encountered challenges, poor press, or may not be well-known in the market.
E

The company's brand is weak and fails to resonate with customers and audiences. This needs to be addressed.

  • Customers perceive the company as being too unreliable, lacking in quality, or irrelevant.
  • The company struggles to differentiate itself from competitors, and there is a lack of customer engagement, or loyalty.
  • The company's reputation may be tarnished or negatively perceived, hindering growth efforts.
  • Significant efforts are required to rebuild the corporate brand and establish a more positive image in the market.
F

The company has a severe lack of brand strength. It is a problem that needs addressing with urgency.

  • The company is poorly recognised, and customers have negative perceptions or zero awareness of its offerings.
  • The company fails to communicate its unique value proposition or inspire customer loyalty.
  • The company's reputation may be highly unfavourable, and attracting customers or top talent is challenging.
  • Immediate and extensive actions are likely necessary to revitalise the brand.

Brand Strength Score

Scoring brand strength is subjective because it relies on individual perceptions and interpretations of various factors, such as customer sentiment, market dynamics, and the competitive landscape, which can vary.

Using our scoring methodology, the average score of a business is calculated as being C (average). This differs from the average score of the top 10,000 businesses featured in our coverage. Weighted to that cohort, the average brand strength score increases to a B (good).

The analysis team have noted the following factors impacting its brand strength:

  • Brand recognition: Yahoo! is a well-known brand in the technology space, with users in many countries globally.
  • Brand loyalty: Yahoo! has established a loyal user base, with many users returning to the platform on a regular basis.
  • Brand trust: Yahoo! is a trusted brand, with users feeling secure when using the platform.
  • Brand awareness: Yahoo! is a well-known brand in the technology industry, with users in many countries across the world.
  • Brand consistency: Yahoo! has maintained a consistent brand identity, with the same logo and colors since its inception.
  • Brand appeal: Yahoo! has a strong appeal to a wide range of users, from casual to power users.
  • Brand Strength Score: A

7Ps Marketing Analysis

The 7Ps of marketing are crucial components of strategic decision making for any organisation in any industry vertical.

Using the 7Ps in competitive analysis provides a holistic view of the marketplace, allowing businesses to refine their strategies, capitalise on competitors' weaknesses, and better meet consumer needs. The 7P's are defined as:

  • Product/Service
  • Price/Fee
  • Place/Access
  • Promotion
  • People
  • Physical Evidence
  • Processes

All these elements together frame an organisation's marketing mix, crucial for creating effective marketing strategies.

This 7P analysis is designed to provide a valuable insight into the business strategies of the company. It can be used to reveal strengths and weaknesses in their marketing mix, offering opportunities to compare and enhance a business.

1. Product/Services: Yahoo! Inc offers a variety of products and services, including its popular search engine, email platform, news and entertainment content, and various digital advertising solutions. Its products and services are designed to provide users with a seamless and efficient online experience.

2. Price/Fees: Yahoo! Inc's products and services are mostly free for individual users, with revenue generated through advertising. However, the company also offers premium services, such as Yahoo! Mail Plus and Yahoo! Finance Premium, for a monthly or annual fee.

3. Place/Access: Yahoo! Inc's products and services are accessible through its website and mobile app. The company also has partnerships with various telecommunications and internet service providers, allowing for wider access to its products and services.

4. Promotion: Yahoo! Inc uses various promotional strategies, including digital advertising, partnerships, and social media marketing, to reach its target audience and promote its products and services.

5. Physical Evidence: The physical evidence of Yahoo! Inc's brand can be seen through its logo, website design, and app interface. The company also has a physical presence through its offices and events, showcasing its brand and products to the public.

6. Processes: Yahoo! Inc has a streamlined process for its products and services, ensuring a smooth and efficient user experience. This includes regular updates and improvements to its platforms, as well as strict privacy and security measures.

7. People: The people behind Yahoo! Inc are a crucial part of its success. The company has a diverse team of employees, including engineers, designers, and content creators, who work together to deliver high-quality products and services to its users.

Potential Products

As part of this study, we have carefully examined and prognosticated a range of new products, services, or innovations that this organisation could potentially develop and introduce to strengthen its market position and respond to emerging industry trends.

Yahoo! Video Streaming Service - A streaming video service to compete with Netflix, Hulu, and Amazon Prime.

Yahoo! Web Hosting Service - A web hosting service designed to help small businesses and entrepreneurs create and manage their websites.

Yahoo! Shopping - An online shopping platform that allows users to compare prices and purchase items from a variety of sellers.

Yahoo! Cloud Storage - A cloud storage solution for individuals and businesses to store documents, photos, and other data.

Yahoo! Maps & Navigation - A web-based mapping and navigation service to help users get from one place to another.

Yahoo! Education - A suite of online educational tools and resources to help students and educators better use the web.

Yahoo! Social Network - A social network to help users find and connect with people all around the world.

Yahoo! E-Commerce Marketplace - An online marketplace to help small businesses and entrepreneurs sell their products and services.

Yahoo! Music - A streaming music service to compete with Apple Music and Spotify. 10. Yahoo! Advertising Platform - A comprehensive advertising platform to help businesses reach their target audience.

Potential Synergies

Our proprietary product and portfolio-matching algorithm has identified the following organisations as having strong potential synergies with the company, based on strategic alignment, complementary capabilities, and opportunities for collaboration across markets or domains.

1. Microsoft Corporation
2. Google LLC
3. Amazon.com Inc
4. Facebook Inc
5. Apple Inc
6. AT&T Inc
7. Adobe Systems Inc
8. IBM Corporation
9. Verizon Communications Inc
10. Oracle Corporation

Porter's Five Forces

Developed by Michael Porter in 1979, Porter’s Five Forces is a model used to analyse industry attractiveness and evaluate competitive environments. It considers five forces:

  • Competitive rivalry
  • Supplier power
  • Buyer power
  • Threat of substitution
  • Threat of new entries

We include this framework because it supports strategic planning, investment decision-making, and long-term competitive positioning across industries by highlighting structural pressures, market threats, and potential profit constraints.

Yahoo! Inc. scores relatively WELL in relation to Porter's Five Forces. The company has a strong brand name and a large customer base, which gives it some bargaining power with suppliers. The threat of new entrants is LOW, as it would be difficult for new companies to establish themselves in the market. The threat of substitute products is also LOW, as Yahoo! offers a unique mix of services. The main area of concern for Yahoo! is the intense competition in the market, which puts pressure on the company to differentiate its products and services.

PESTLE Analysis

A PESTLE analysis is used to evaluate external factors affecting an organisation. It examines (1) Political; (2) Economic; (3) Social; (4) Technological; (5) Legal; and (6) Environmental influences. This framework helps businesses identify potential risks and opportunities in the macro-environment, supporting informed decision-making, strategic planning, and long-term sustainability in dynamic markets.

Reasons to use a PESTLE include:

  • Environmental Scanning: PESTLE helps assess external factors, keeping executives aware of key forces
  • Strategic Planning: It identifies opportunities and threats, aiding market alignment and goal-setting
  • Risk Assessment: PESTLE highlights risks, helping businesses develop mitigation strategies
  • Market Insights: It provides insights into trends, behavior, and regulations for better strategy development
  • Business Adaptation: Regular analysis allows businesses to stay competitive by adapting to changes

Below is the PESTLE analysis for this company:

PESTLE Analysis: political, economic, social, technological, legal, environmental

CATWOE Analysis

CATWOE

The CATWOE analysis helps businesses understand stakeholders' perspectives for informed decision-making, covering six elements:

  • Customers: Beneficiaries of the system’s outputs
  • Actors: Those who influence the system’s functionality
  • Transformation: Converting inputs into value-creating outputs
  • World View: The broader context behind the system’s existence
  • Owner: Decision-makers with authority over the system
  • Environment: External factors impacting the system

The CATWOE analysis is most effective when used alongside a SWOT analysis.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the Yahoo! Inc business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

SWOT Analysis: strengths, weaknesses, opportunities, threats

Strengths

The strengths of a company refer to its internal attributes or capabilities that provide it with a competitive advantage.

Below is a list of the key strengths we have identified for the business:

1. Yahoo! has a strong global brand and is one of the most recognisable Internet brands in the world.

2. Yahoo! has a diversified business model with a large and growing global user base.

3. Yahoo! has a strong technology platform and leading edge product development capabilities.

4. Yahoo! has a strong financial position with a large cash reserve and no debt.

Opportunities

Opportunities refer to factors that present potential avenues for growth, advantage, or improvement for an organisation.

Below is a list of opportunities we have identified for the business:

1. Strengthen Core Businesses: Yahoo! can take advantage of its existing businesses, such as its search engine, email platform, and advertising network, by investing in research and development to improve their offerings. This could include making the user experience more intuitive and tailored to individual user needs, which could result in increased engagement and revenue.

2. Improve Mobile Platform: Yahoo! should focus on improving its mobile platform offerings. This could include developing more user-friendly apps, such as its Fantasy Sports App, and creating new innovative ways for users to interact with the company’s services on their mobile devices.

3. Invest in Acquisitions: Yahoo! should invest in strategic acquisition of start-ups and other companies in order to expand its product offerings and increase its customer base. This could include investing in companies that are in related industries or developing innovative technologies.

4. Increase Global Expansion: Yahoo! should also focus on expanding its global reach. This could include investing in online advertising campaigns in other countries, as well as setting up new offices in key markets. This could help Yahoo! tap into new customer segments and increase its presence in the global marketplace.

Weaknesses

The weaknesses refer to factors that hinder a company's performance or competitive advantage.

Below is a list of the weaknesses we have identified for the business:

1. Lack of mobile focus: In today’s world, it’s all about mobile. Consumers are using their mobile devices to do everything from checking the weather to checking their bank balance. Yahoo! has been slow to adapt to this shift and as a result, its user base has been declining.

2. Search engine market share: Google has been the king of search for years and Yahoo! has been playing catch up. In recent years, Yahoo! has made some progress in this area but it still has a long way to go.

3. Lack of original content: One of the reasons people use search engines is to find information. Google has been able to dominate in this area because it has a wealth of original content. Yahoo!, on the other hand, relies heavily on third-party sources for its content, which is often outdated or inaccurate.

4. Declining advertising revenue: As people move away from traditional forms of media, such as newspapers and television, advertising dollars are following suit. This is bad news for Yahoo!, which relies heavily on advertising revenue.

Threats

The threats to an organisation refer to factors that pose challenges or risks to a company's success.

Below is a list of the threats we have identified for the business:

1. Strategic Threat: Loss of Market Share. Yahoo! Inc. has seen a decline in their market share in recent years due to competition from other search engines and social media platforms. This has led to a decrease in ad revenue and has put Yahoo! at risk of losing its foothold in the online market.

2. Operational Threat: Security Breaches. In 2014, Yahoo! Inc. suffered a major data breach, resulting in the theft of over 500 million user accounts. This security breach caused a significant damage to the company’s reputation and resulted in a decrease in user trust, potentially leading to a drop in new users.

3. Strategic Threat: Lack of Innovation. Yahoo! Inc. has been slow to innovate and adapt to the changing online market, resulting in many of their products becoming outdated and uncompetitive. This has resulted in a loss of business and market share to competitors who are able to provide more modern and attractive products.

4. Operational Threat: Leadership and Management Issues. Yahoo! Inc. has seen a number of high-profile executive departures in recent years, leading to a lack of continuity in the company’s leadership. This has caused a disruption in the company’s operations and may have had a direct effect on their financial performance.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for Yahoo! Inc. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to Yahoo! Inc, as well as areas where the company needs to improve its operations or strategy.
Company: Yahoo! Inc is a technology company that provides a variety of services including search, content, digital tools, and communications. It is one of the most popular online services and websites, with a large user base of over one billion people worldwide.

Collaborators: Yahoo! Inc. collaborates with a number of different companies and organisations, including Google, Microsoft, and Apple. It also works with content providers such as The New York Times, The Wall Street Journal, and National Geographic.

Customers: Yahoo! Inc. has a wide customer base, ranging from individuals to companies. It offers personalised services to its customers, including email, news, search, and entertainment.

Competitors: Yahoo! Inc. has a number of competitors, including Google, Microsoft, and Apple. It also competes with other search engines, such as Bing and DuckDuckGo.

Content: Yahoo! Inc. provides a variety of content, including news, sports, entertainment, finance, and lifestyle. It also provides content from its partners, such as The New York Times and National Geographic. What's more, Yahoo! Inc. provides tools for its users to customise their experience on the website.
5C Analysis: company, customers, competition, collaboration, climate

MOST Analysis

MOST Analysis: mission, objectives, strategy, tactics

The MOST analysis framework is used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. The MOST analysis helps executives focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles.

  • Mission defines the organisations purpose and core values, providing a clear direction and inspiration for stakeholders
  • Objectives are specific, measurable targets that support the mission; they indicate what the organisation aims to achieve within a defined timeframe
  • Strategy outlines the high-level approach the organisation will undertake to reach its objectives, detailing how resources will be allocated and initiatives prioritised
  • Tactics are the actionable steps and specific plans that implement the strategy, ensuring that all team members understand their roles in achieving objectives

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

The team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism designed to benchmark innovation.

First, we allocate a score of A-E for the industry, based on the key organisations operating within the space; and then score the individual organisation using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Innovation Scorecard

Industry Score:

A The industry is amongst the most innovative; with the leading players all driving the sector forward.
Example industry: PaaS
B The industry and its leading players have a good track record of innovation; and can quickly react to change.
Example industry: Pharmaceutical
C Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate.
Example industry: FMCG
DBusinesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption.
Example industry: Retail Banking
E The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change.
Example industry: Publishing

 

Company Score:

1 The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2 The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3 The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5 The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.
The team at Platform Executive has judged Yahoo! Inc as having an innovation score of B3.

Appendices

The appendices section of this report contains supplementary information that we deem helpful in providing a more comprehensive understanding of the report.

Methodology

This study on Yahoo! Inc forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The report is based on information and learning from the following sources:

  • Corporate websites
  • Proprietary research databases
  • SEC Filings
  • Corporate press releases
  • News articles
  • Financial data API's
  • Product-matching algorithm

Further Reading

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Disclaimer

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Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

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