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Yahoo! Inc. (YHOO), Google Inc (GOOG): Why You Should Take CEO Changes Seriously

A lot of us might not know it, but most of the strategic moves made by CEOs go a long way in determining every given company’s stock price movement. One of such strategies is the growth strategy. According to Keith McFarland, a well-known entrepreneur and former Inc. 500 CEO, companies can maintain fast-growth if the management puts together growth strategies that bring “the most results from the least amount of risk and effort”.

Some of the growth strategies he listed include Market Penetration, Market Development, Alternative Channels, Product Development, and New Products for New Customers. In terms of market penetration, the company maintains growth by selling more of its current products to its current customers. Market development is a strategy that enables the company to sell more of its current products to extended and adjacent markets. This is a strategy that has worked for a lot of CEOs and management teams.

As for alternative channels, it is a fast-growth maintenance strategy that entails reaching out to current customers and prospects through other methods like online retail division. Product development strategy is built around the development of new products which are sold both to current customers and new ones.

Finally, on the strategic moves CEOs employ to positively impact on their company’s stock price movement, is creation of new products for new customers. Concentrating on one product can, in most cases, put a company in dire straits. With the development of new products geared towards new prospects, a new market is subsequently opened with greater earning potentials.

Mayer may have brought some innovative faith along with her from Google Inc (NASDAQ:GOOG), giving Yahoo! Inc. (NASDAQ:YHOO) the surge it needs after its leadership disaster over the past couple of years. Google Inc (NASDAQ:GOOG) and Amazon.com, Inc. (NASDAQ:AMZN) remain stable in their executive choices, potentially promoting growth in Google, and a possible plateau in Amazon. Keep an eye out for the next big job change and strategy, the results might be fruitful.

Naomi Warmate-Igwe has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Google. The Motley Fool owns shares of Amazon.com and Google.

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