Baidu is described as Google of China. Thus, it is the solid long-term play as there are different risks in providing the returns of solid investors.
Baidu as Moaty Business
For being Baidu as Google of China, there is the reason. It is building the hard network effect of business. Thus, Google is effectively hampering the search market in China. Therefore, the company is having a market share which is close to 80% in the Chinese market and is very dependable.
China Search Engine Market Share
Baidu is consisting of around 450 Mn mobile search users in the ecosystem and is advantaging the network effect. The stream of rich data is coming from several millions of search queries, users are helping in enhancing the priority of search results. Thus, Baidu is influencing for providing the appropriate and personal experience to customers.
It is very important for the new provider to market has the potential of replicating the search data. The aggregation of merchant and database of users Baidu is collecting the data from various years. Thus, this is possible in the sensible time period where refinement and development of search algorithms for collecting the results. Hence, this is the re-entry in the Chinese market in a knowledgeable player such as Google. After the modification of the algorithm of Google, there is a need for supporting the local preferences. Thus, this is providing cultural context to results.
A backlash of politics on the death of a student is following the cure by following the link of Baidu’s advertising. Thus, this is resulting in the command for the company is renovating the priorities of advertising on site. Therefore, the credibility of an advertiser is the most important weighting factor. The revenue of the company from the sector healthcare is continuing the near-term hit known as ‘spurious advertisers’ in the healthcare market. Hence, Baidu is migrating the providers to healthcare portal for tightly managing and is significant in restoring the credibility and faith in the company.
Capitalization in AI and different technologies essential for remaining inventive
On getting influenced by Tencent threat, where Baidu is embarking on the program of investment for enhancing search. This is complementing the efficacy to a user by capitalizing on the capabilities of AI. Thus, the program of investment is having the effect of profitability and near-term margins. The most important initiative is about the development of AI-based platform where Baidu is developing the DuerOS voice assistant platform.