Baidu vs Google viral

A funny viral that nicely illustrates the current situation of foreign Web companies operating in China is this one from Baidu:

Although Baidu does not mention the name of its biggest competitor – Google – the foreigner in the video is probably representing Google. Other foreign Internet companies such as Yahoo and eBay have officially pulled the plug on their operations in China and most other foreign Web companies in China are struggling or fail because they have underestimated the competition or differences in culture and usability. The battle for market share between Google and Baidu is interesting because it is exceptional that Google is not the number one search engine in a country.

Around a year ago Google was still losing ground and Baidu’s market share was growing faster compared to Google’s. But more recent estimations indicate that Google is starting to catch up: in October last year Reuters reported that in the second quarter of 2007 Baidu increased only 1% in market share (from 57% to 58%) while Google’s market share grew with 4% to around 23%. So it seems that, among others, strategic actions such as teaming up with Sina in combination with the launch of some smart and innovative applications such as this one is finally paying off.

How is this rivalry between foreign and local Internet companies relevant for my thesis? I think in the near future Chinese companies that are expanding to overseas markets will have to cope with similar problems that foreign companies currently do in China. Chinese Web companies with international ambitions could learn from mistakes that foreign companies in China are making to be able to enter a foreign market more prepared.
 

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One Response to “Baidu vs Google viral”

  1. Merel Says:

    Very intresting topic. I wish you good luck with your masters thesis!

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