Chinese Google, as it’s affectionately known in the Western world, or Baidu, was seen to be a world beater with fantastic prospects for future growth. However, the world recession has clearly had a profound impact upon future forecasts, and may have eventually caught up with China’s largest search engine.
As a result of the fantastic prospects that were pre-empted, Baidu decided to proliferate it’s product range, to include other features, similar to Google’s strategy, such as Baidu Maps. However, it’s clear that Baidu remains predominantly a search engine, as shown by these figures.
Trefis foresee Baidu’s growth prospects falling as their market share plummets, from 80.4% in 2012 to 54% in 2014. Baidu must also be vigilant to avoid marketing myopia and should strive to understand the competitive environment in which it operates. Competition in the market is becoming fierce and there is cause for concern, according to Trefis. It predicts
- Qihoo and Sogou continue to expand into the mobile market
- Sogou and Qihoo add to the pressure with aggressive cost-cutting
- The decline in the economy drives smaller businesses to cheaper channels
The future of Baidu Marketing
The future is not looking so rosy for Baidu at present and you would be forgiven for thinking that it’s competitors are in the same boat. However, the harsh reality for Baidu is that other companies, it’s direct competitors, truly aren’t performing as badly as Baidu itself. This is a cause for concern for the Chinese search engine giant and the company must look into straightening out this issue as soon as possible if it doesnt want it’s market leader status to come under threat in the not so distant future.
Trefis is predicting a further slide in the value of Baidu as the economic slowdown contributes to political uncertainty, and hammers consumer confidence.
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