Frbiz.com reports Baidu international accused of lack of strategic implementation talent

Enter the Asian market

Since the 2005 listing, Baidu gained considerable success. However, despite dominating the Chinese Internet search market, Baidu's share in the international market was small. But this did not affect Baidu to enter the international market confidence. Baidu hope "to the world", in the Asian Internet search market challenges Google and Yahoo. Investment firm Ten Asset Management analyst Paul Kedrosky (Paul Kedrosky), said, "At present, Baidu hopes to become Asia's 'Google'."

Many people in the industry believe that Baidu is only doing business in China, its performance is closely related with China's economic situation. Goldman Sachs analyst Qiaodanmona Han Dynasty (Jordan Monahan) said, "At present, Baidu vast majority of revenue from China, and other global competitors do business compared to face greater risk."

Analysys International data show that occupied 60% of China Baidu's Internet search market, Google's market share in China is about 30%. With the growing number of Internet users in China, Baidu will be able to maintain its leading position. U.S. investment firm Oppenheimer analyst Paul Keung said, "Search for the Chinese Internet content in China, Baidu is the ideal choice."

It is for this reason, Baidu shares from the market when the current 27 U.S. dollars rose to nearly 400 U.S. dollars. Although many Internet companies has been a serious impact on the economic crisis, but the results still showed Baidu rapid growth. Goldman Sachs expects the period from 2010 to 2013, Baidu annual revenue growth rate will be 30% -40%, while Google only 10% -12%. Goldman Sachs analyst James Mitchell (James Mitchell) said, "China is now only 26% of the population online. Baidu search huge potential for business growth is still our preferred stock."

Even though Google CEO Eric Schmidt (Eric Schmidt) has recognized China's Internet search market, huge growth potential. Schmidt said at a meeting recently to 2014, Chinese content will increase significantly. Kedrosky said, "The question now is, Baidu Google can not overcome the possibility of establishing the Chinese 'bunker'."

Huge potential for growth

Currently, Baidu has been called "China's Google killer", its growth potential is still considerable. Market research firm ComScore, said in the past year alone, at home and work place of China's Internet population increased by 3 times. At present, only 1% of Chinese enterprises in Baidu ads. Goldman Sachs recently issued a report even said that, in view of the advantages of Baidu, in addition to Baidu, the Chinese advertisers have no place ads.

Baidu main reason for success is to understand the local culture, to provide more relevant search results. Baidu, a spokesman said, "compared with Google, Baidu for Chinese culture, a deeper understanding." The spokesman to search for the keyword "SHE" example to illustrate this issue, including Google, including with the many other search engines is different is that top-ranking Baidu search results are the band SHE and Taiwan-related content. Therefore, the Chinese content in the search, Baidu is the best choice.

Google had initially invest in Baidu, hoping to enter the Chinese Internet search market. However, Google Baidu shares sold in 2006, is currently competing with Baidu Chinese Internet search market.

Chinese competition in the field of mobile search is also growing. China currently has 6-7 million mobile subscribers, equivalent to about 2 times the users. Earlier this year, China has about 40 million mobile Internet users is expected that this number will grow rapidly.

Despite the explosive growth in China, but the goal of Baidu is clearly not just occupy the Chinese market. Baidu has been into the Internet search market in Japan, hoping in the next 15 years to become well-known multinational companies. Baidu search results is also available in English, but being right in the English search in Google and Yahoo did not constitute a threat.

Analysts worry that the new advertising system Baidu phoenix nest switching will lead to a slowdown in revenue next year. Goldman Sachs will Baidu 6-month target price of 455 U.S. dollars from previous down to 435 U.S. dollars.

Many industry analysts believe that, due to growing Internet users in China and rapid economic development, Baidu shares to investors is still very attractive. Goldman Sachs and JP Morgan Investment Report were published, said phoenix nest lay the foundation for future growth. Kedrosky said, "In theory, Baidu to worldwide challenges of Google, but I think Baidu is currently a lack of implementation capacity to achieve this goal, that is talent."
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