Yelp Inc. SWOT Analysis

YelpInc. SWOT Analysis


YelpInc. SWOT Analysis

Yelpbeing an online advertisement platform for business owners, it hasproved to be a reputable service provider despite the stiffcompetition it faces from, GOOGLE, YAHOO or EBAY. This competitionhas made it strong in trying to keep a high market share. Having aplatform for both sellers and buyers to communicate or ratherexchange views and responses from different business reviews, Yelphas gradually gained their trust by being speedy in posting theirclient`s needs and preferences (Goldsmith et al, 2013). Given that itis a recognized company, it clearly has its own strengths andopportunities as well as weaknesses and threats that have contributedin one way or another to its success or failure. SWOT analysis in asimplified portrait.



Social relations

In the US almost all classes of ages own internet based devices and clearly ease of access to the internet. This high percentage of users make Yelp grow and easily available.


Yelp has a great innovative opportunity by making use of its intellectual property and the already laid down market reputation has enabled it to develop innovative products that are attractive to their clients the Yelp mobile and the desktop app that has garnered a whole lot of visits as well as reviews.

Industry collaboration.

By collaborating with other industries, the yelp company has an opportunity to learn from others the opportunities available or unseen risks and try hard to curb and mitigate them while grabbing the opportunities before their competitors do.

Government policy

In trying to take advantage of the available opportunities, the yelp company came to an agreement with the US general administration for agencies to access their pages, this way the government saved on costs for additional pages and therefore Yelp it a rise in their page visits.



It`s an obvious reality that yelp faces direct competition from Google Inc., yahoo Inc., eBay Inc. and others like PayPal through their advertisements causing ads, traffic reducing the advertising space for them and any other upcoming online advertisers.

Data insecurity

Having a wide pool of internet users, buyers and sellers critical information is prone to cyber theft facilitated by malware and system viruses that make it easy for hackers to access and manipulate their data. This is a big threat to yelp as the platform they create for both sellers and sellers will be filled with chaos demanding for yelp to be accountable.

Fluctuating tax rates

Since tax rates are flexible, taxpayers can never be able to predict or approximate the rates for a production period therefore their financial plans would counter the actual returns.

Legal stand

Yelp being a public corporation, it has to follow the laid down government, employment, productivity and health and safety laws required. They have to be liable for any unattractive or offensive product to the government as well as their clients.

Technological Change

Technology is nowadays changing drastically. In order to keep track of their clients, yelp has to keep updating their technology in order to keep them up to date. This whole process calls for additional costs in training their staff and purchasing new upgraded devices and units. This can contribute to sales reduction before the new technology is adapted completely.




Its numerous offices in different localities have given yelp an advantage in handling a wide pool of clients because of its spacious room for research and development.

Yelp mobile and desktop app

The recently innovated mobile and the desktop yelp app has enabled yelp to reconquering the market by gaining more member visits and reviews as well as nonmember.

Low employee turnover

Yelp has a pool of fully dedicated and loyal employees who work tirelessly to see the company venture into the market by gaining the highest market share. They have a very low or none employee turnover resulting from the generous salary they offer as well as other morale building drivers like health and retirement pensions.


Too much trust for employees

Since the Yelp trains skilled personnel for long serving efforts, employees who get more acquainted with all the resources could easily trade the yelp intellectual property and sensitive information to their competitors for loyalty reward in return.

Discussionand Recommendations

Forthe record, Yelp Corporation has a good worked on market reputationand with that it can achieve its set goals and objectives. Itsmission and vision statements have given it a recognizable face aboveits competitors. Having a clear and focused mission guaranteesefficiency and effectiveness in delivering their products andservices. Their aim is to connect people to big local firms that willease their access and also facilitate transactions. A company thatfocuses on producing products and providing services according totheir customers’ needs is set to grow and dwell for long as long ascustomers are satisfied (Minkler, 1993).

Inorder to keep their customers and to keep them anxious for the nextproduct, the yelp group has to try and match demand and supply inorder to restore equilibrium by obeying the market forces. Also byidentifying a market gap before proceeding with the development of anew product or service is a more enticing way to attract morecustomers. The mission itself being clearly stated, helps yelp tounderstand both the psychological and physical functioning orunderstanding of their customers in order to process their preferredneeds. This personality has made it gain a positive reputation aidingin yielding a competitive advantage in the market (Aspray et al,2013). The mission is a continuing course, therefore, despite anychange to be made in the future, the mission will remain functional.

Thevision statement is a high contributive manual to the success ofYelp. It`s portrayed in a present world, meaning Yelp is in theprocess of attaining its vision which already is attainable, giventhe SMART analysis. Their vision is to make a difference in the worldby creating a loyal-relationship built culture based on fun, heart,happiness, genuine care and honor. They happen to have a passion increating a world that is full of fun and cultural relatedrelationships keeping communication booming. “WeAre On An Adventure To Blow The Doors Off”states their vision. This is no ambiguous statement as it is clear asto what they expect to do in order to keep people connected all at noone`s expense. Yelp as any other company, has its laid down strategicobjectives. It has stated that it aims at raising its revenue inorder to end up taking over a 15% market share come end of 2016. Asper the SMART analysis, the objective incorporates all these conceptsSpecific, Measurable, Attainable or Achievable, Realistic, orRelevant and finally Time-oriented objectives (Degryse et al, 2012).

Theobjective appears specific since Yelp has a set gap in the market itaims to fill and since not many online companies appear successful,it sees an opportunity to thrive in. It also measurable in the sensethat revenues and returns are expected to be collected from most ofits branches from Asia and Europe. Yelp hopes to attain the objectivesince it has systems and platforms that allow many business reviewsassuring its attainability. Reality for its achievement hits in sinceYelp sprouts wide room for expansion in areas it can invest for morereturns. It clearly shows a particular time frame to attain all this,therefore, it`s well planned in terms of time.

Thecompany also has a specific objective stating that it expects toyield$1 billion revenue in 2017 since it has already fairly allocatedresources to achieve this. It is a measurable goal for the companycan collect all its previous reports and compare them which are alsoachievable. Since it made $550 million in 2015, its 2017 revenueobjective is realistic as it continues to face stiff competition frombigger corporations as well as small upcoming businesses. Looking atthe opportunity it has to conquer the market through the governmentpages, it certainly would not opt for an opposing proposition inorder to keep leading the market. By saving the government on coststo develop a certain anticipation that tax rates would go down and asa result, companies like Yelp would eventually save on costs pilingup a larger platform for research and development.

Ithas been successful to the leading companies to either collaborate ormerge with smaller companies to gain a wide pool of clients. Thiswould only save a firm when competition seems stiff and advertisementspace if flocked by all other advertisers therefore, by comingtogether as one, the firm will result to possessing a larger spacefor its clients. Success for a firm in this industry will only be tothose who embrace technology to keep up to date with innovativeideas, therefore always ahead of others in meeting their customers’demands.

Ina competitive industry is often described by its economic structurewhich is determined by certain factors. They are described as MichaelPorter`s five competitive forces. They include:

Threatof New Entrants:Here,the products are new and booming, so they already have plannedmechanisms to sell their products. Buyers`Bargaining Power: Here,buyers have no loyalty to any brand and they are always looking forcheap and quality products since they are given various options.Suppliers`Bargaining Power:Suppliers have no noticed bargaining power since there exists manysuppliers offering the same products, therefore they have to keeptheir products selling at low cost in order to maintain a largermarket share. ExistenceOf Substitutes:Thevolume of substitutes is high therefore a big threat since theseproducts a very familiar to the customers. These substitutes includethe TVs, Radios and newspapers. RivalryIn The Market: Thereexist many larger companies offering the same products and services,thus, the competition is high and strong. Competitors like GOOGLE,YAHOO or EBAY keep their high market share by creating additionalblogs to capture many customers and make them spend much timereviewing them (Chen &amp Wu, 2007).

Inconclusion, Yelp like any other company ought to operate with an aimof satisfying their customers. By working on its SWOT analysis, ittakes advantage of its strength and opportunities to cover up theirweaknesses and to curb unseen threats. In all aspects, it has a majoradvantage over its competitors government page access therefore manyvisits and business reviews recorded.


Aspray,W., Royer, G.,&amp Ocepek, M. G. (2013). Food in the internet Age.New York: Springer. Cloutier, A. (2013). Competitive intelligenceprocess integrative model based on a scoping review of theliterature. Internationaljournal of strategic management, 13(1),57-72.

Chen,Y. &amp Wu, T. (2007). An empirical analysis of core competence forhigh-tech firms and traditional manufacturers. Journalof mgmt. Development, 26 (2),159-168.

Degryse,H., de Goeij, P., &amp Kappert, P. (2012). The impact of firm andindustry characteristics on small firms` capital structure.Small Business Economics, 38 (4),431-447.

Goldsmith,R.E., Pagani, M., &amp Lu, X. (2013). Social network activity andcontributing to an online review site. Journalof Research in Interactive Marketing, 7 (2),100-118

Minkler,A. (1993). Knowledge and internal organization. Journalof economic behavior &amp organization, 21(1),17-30