Yellow Pages Online Strategic Error
Sunday, September 6th, 2009One of the biggest strategic errors in recent history goes to the managers of the yellow pages. They had a chance to become the go to source for local information, but lacked the vision to see how to turn this into a long term goldmine.
Before the web became widely adopted the yellow phone book was “the source” for local business information. When people required the services of a new business it was the first place they searched.
When the internet started gaining momentum and users, the Yellow Pages management viewed the web as an add on product to the big printed book that was the core of their business. They lacked the vision to see the day that the web would replace a printed book for most consumers. Instead of building for the future they took the immediate profits from add on sales, forgoing the long term strategic advantage.
With a lack of vision they asked businesses to pay an exorbitant monthly fee to show up in the online search results of their obscure pages. Many if not most refused, making the online version irrelevant.