Silicon Valley industry insiders are currently talking that Facebook is becoming the new Yahoo. Facebook has decided to scrap its photo-rich redesign and release a design that may look similar to its 2009 design but works really great for majority of its users. If Facebook fails to innovate on design as a result of its large install base, then the company is really becoming the next Yahoo. Yahoo has operated with a classic innovator’s dilemma almost since its start. It was unable to trial really radical things with Yahoo.com as it had become a huge business as a result of its hundreds of millions of mainstream users. This resulted in making Yahoo vulnerable to smaller companies, including Google and Facebook, which are free to do radical things as they were not yet dependent on an existing business. Gradually those smaller companies became much bigger companies that took away the revenues of Yahoo. Presently, Facebook is witnessing the same issue. But the breather for its shareholders is that the company’s CEO Mark Zuckerberg is fully aware of the situation that his company is at the same stage as Yahoo was few years ago and is doing something about it.
