Yelp analysis – Term Paper

Yelp Success: 4 Three-year Financial Performance

2014, 2015, and 2016 cumulative reviews present a summary of the business financial performance. The good performance is naturally because of the addition of boutiques, salons, plumbers and mechanics with due time. The company has registered close to 25 million devices logged in and almost 73 million visitors daily. The business platform involves at least three key attributes that are considered in the process of bringing more visitors and closing more deals. 

Yelp 2014, 2015 and 2016 financial list has been changing progressively and positively. For instance, in 2015, the total revenue was 153, 7% from the 2014 year which was at 91.8%. The cash flow has also registered positive returns which by 2015 it were recorded at $17.5. On the other hand, the new revenue on 2015 stood at $549.7 million up from $ 377 million in the previous year. The EBITDA registered a slight decline from $70.9 down from $69.1.  Per share, the return has been promising results. For instance, in the year 2014, per share pussy was registered at $0.48 per share up from $ 0.37. In the year 2016, the company recorded a profitability of 713 million, the revenue per share stood at 9.24. However, the return on assets recorded a -0.12%. Also, the operating cash flow stands at 126.9 million up from 125 million (Nasdaq.com, 2017). 

The EBITDA stood at 33.82 up from $12 million. Also, in the year 2014, the total assets stood at 629.6 million moving to 755.4 million in the year 2015. The total assets by 2016 stood at 885, 206. On the other hand, the total liabilities have been growing. In fact, by 2014, the total liabilities stood at $41,500; by 2015 they stood at $61,807 while by 2016 the liabilities stood at $78,020. The total company equity by 2016 holds $807,186

5. Yelp Recommendations for Key Performance Measures

5.1 Strengthen the execution infrastructure 

Apparently, Google is rivaling Yelp because it has it has a stronger custom made search engine. Hence, Yelp should move to the next stage by enhancing the placement infrastructure. Currently, the organization does not have the resource to develop a search engine as reliable as Google. Johnson (2005, p. 116) advocates for the adoption of the safe bet to ensure that the growth process is more beneficial to the organization. 

Table 2: Key Performance Indicator for the Item

5.2 Yelp strategy for high profitability

The organization strategies of success should evaluate growing the business in line with the existing market segments. Building the business involves developing the appropriate segments of customers which create market opportunities. The progressive growth is based on the ability to creative more innovative value for the true business propositions where the customer is more inclined to responding to the market because of its new reputation (Cannon, 2005, p. 189). In considering the adjacent growth, the organization should reconsider the initiation of the different strategies that relate to the various similarities. Salzman (2015) notes the team growth options depends naturally on the ability to get involved in competition while ensuring that the business has much to offer to investors in the corporate market. 

In response, the company should identify its niche market which involves services, customers, products, channels, and the geographic areas. Given the company is considering growth in infrastructure. Hence it should focus predominantly on viral marketing. The company should recognize the need for stronger discussion and pages on Facebook. 

Besides, the organization should be reconsidering the focusing of core listing more business and registering more visitors. Hence, it should focus on the ability to interact with customers more. A new social media strategy seems lucrative, however what about the old strategy, print business, T-Shirts, Caps, and Branding vehicles.  Imposing the products an advert seems to be a challenging process; however, the business should consider diversifying its new revenue to kids’ clothes brands with a big title Yelp. Such garments should be of high quality but cheap price.

Table 3: Key Performance Indicator for the Item

5.3 Supportive Yelp Leadership

The organization should also restructure its internal key networks. Even though the team is growing, it seems it is running out of options about the products. These are the symptoms of a crippling organizational structure. The organization is growing in a massively huge manner; hence there is a force that is requesting the group to perform in a particular way. It is currently doing the following to keep it ahead,;;

Minimizing barriers that reduce the possible competitive growth,;

overcoming obstacles that weaken collaboration with partners and branches

Maximizing learning for professional development

Creating the appropriate success for the continuity of the business.;

Given that the organization is now a midsized company, the team should focus on the overall direction for the future. Additionally, the agency should screen the process by selecting the individuals who deal with the challenges that hamper the proper innovative growth (Thorns, 2008, p. 420). In response, the organization should restructure its leadership mindset. McMahon (2012, p. 70) advocates for employees who are more skillful while ensuring that it is possible to generate the right absolute necessity for the product.;

Table 4: Key Performance Indicator for the Item

5.4 Summary of the KPM

As noted, the organization should consider franchising, where it encourages local IT businesses to motivate other business in doing list. In every list, the local business benefit with 50% profit. Meanwhile, the business should focus in advertisement more than cost management and more products, because according to the global mobile users, a turnout of below 40 million is a relatively small score. Lastly, the organization will require generating new skills, by hiring new and innovative I.T personnel.

6. Conclusion;

As illustrated, the organization is moving forward towards achieving strategic organizational goals. However, such a success is limited because the organization is facing challenges of expanding its potential products. Nonetheless, it is clear that Yelp possible glory as a web giant has just begun because it is in a business where the customers run the content while it creates the infrastructure ; social media. Hence, based on the results of the key performance measures established, it is clear that the business should regurgitate its original goals. By franchising Yelp will be motivating fast foods to brand the business with a Yelp logo. This has also been evidenced through the print advertisement which seeks to make Yelp a household name. Hence, Yelp should seize becoming an application only, but have real infrastructure on the ground, such as Uber or Arbnb.