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
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SOURCE Beijing Perfect World Co., Ltd.