Yahoo's strong fourth-quarter results emphasize a theory I've been thinking about for awhile - the power of the default. By this I mean, the maturation/evolution of the Internet has created default products and services for the masses.
When you think of online auctions, it's eBay; when you think of buying a book or CD, it's Amazon.com; when you think of mobile e-mail, it's Research in Motion; when you think of online services, it's Yahoo; when you think of search, it's Google; and when you think of online advertising, it's Yahoo and Google.
Once a company achieves this status, they control the market. Look at eBay's recent move to hike its fees in a major way. One would think there would be howls of protest. Instead, everyone seems to have meekly accepted them.
Let's talk about growth. In February, Research in Motion heralded iits one-millionth subscriber. Last month, it busted through the two million barrier.
There's no set formula for getting to the "default" status. It takes superior strategy and/or luck and/or good timing and/or a superior product or service. Once you get there, however, it's time to start counting the cash.