BEIJING, Sept.20 /Xinhua-PRNewswire/ -- CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), releases its article on Google stepping up its efforts in the wireless network market while Baidu misses inroads to development.
Recently, news that Google will develop its mobile phone and enter the wireless network market has caused much discussion, both at home and abroad. Just as when Apple introduced its iPhone, people inside and outside the industry from Wall Street to Zhongguancun were surprised to find out about Google’s mobile phone.
So far, Google has yet to make any statement on the rumors. But, in media circles this not an unfounded rumor. A series of moves by Google, such as seizing first market opportunities and setting up competition barriers are the best indicators that Google is preparing for business operations in the mobile Internet market.
In the United States, Google has started to build an inter-city Wi-Fi network for users to access wireless networks. It is also bidding for the 700MHz frequency band from the FCC. This has made people assume that Google will become a new carrier. Meanwhile, Google cooperates with Sprint Nextel and others in US. It provides wireless services such as mobile search and Gmail on 4G (WiMAX) networks, which Sprint Nextel is releasing next year. It has also cooperated with Vodafone in Europe and China Mobile in China. A series of moves taken by Google all show its strong desire to enter the wireless network field. From the very onset, Google adopted a high-end route: firstly "pave a good way" with telecom operators, and then let its own application services -- whether to develop the rumored "Google mobile phone," or integrated into the mobile phone sets of other brands -- run on the paved "network road."
Built upon its search engine services, Google is popular worldwide. It has swept away almost all the foreign markets it has entered. But in China, Google has met with Baidu, which understands the Chinese market and mentality better. After several years, Google is over 30% behind Baidu in terms of market shares. Facing such a big gap, Google has provided search services to websites like SINA to improve its traffic and to narrow its gap with Baidu in the Internet market. On the other hand, it has taken the lead in carrying operations in the wireless network market, by introducing its popular Google Search, Google Map, Gtalk and Gmail into its wireless networks and nurtured mobile phone users’ "inertia" to use Google products to firmly obtain shares in the fast-growing mobile search market. This operational model will bring a stable slow of revenue to Google and naturally set entry barriers to latecomers. This is part of Google's global strategy. It is also an important strategy for Google to overtake Baidu in the Chinese market.
Looking at Baidu: despite its firm claims of being the No. 1 Internet search engine in China, it is nevertheless in a disadvantageous position in the wireless network market. In the global market, Baidu is does not have as solid of a foundation as Google. Google is able to stage large-scale operations such as acquiring Youtube to enter the online video industry, building its inter-city Wi-Fi wireless networks and bidding for wireless spectrums. In the product R&D field, Baidu has no other products outside of its search engines to bring customers with "integrated" user experiences and use inertia. As for strategic cooperation in wireless networks, Google has left Baidu behind. Baidu only has terminal maker partners like Nokia. But, Google has pushed forward on two fronts through cooperation with both network operators and terminal makers. As for the tactical layout of wireless networks, Google has long integrated mobile phone terminals from Sony Ericsson and Vodafone through its various application services such as Google Search and Gmail. It has gradually nurtured mobile phone users’ use habits and continued to improve its products according to users’ preferences. Due to its product restrictions, Baidu can only provide monolithic search services.
Wireless networks will be the next fast-growing market. In recent years, mobile search has maintained an annual 5 to 6 fold, growth rate. In the mobile search market, Google has taken a step-by-step approach and has seized the opportunity to take the lead in the industry. If Baidu makes no further efforts, it may not relive its glory days in the Internet market.
About CCID Consulting
CCID Consulting Co., Ltd (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is directly affiliate to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Harbin, with over 300 professional consultants and industry experts. The company’s business scope has covered over 200 large and medium-sized cities in China. Apart from home market development, CCID Consulting establishes international cooperation links across the United States, Asia-pacific area and Europe, by setting up agents in the U.S, Japan, South Korea, Australia, Singapore, Italy and Russia, along with the aim to be global.
Based on four major competitiveness of the powerful data channels, industrial resources, intensive knowledge and deep understandings of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Her customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits herself to become the No.1 brand for strategy consulting, the No.1 consultant for enterprise management and the No.1 expert for market research.
