Baidu VS Alibaba = Strongest VS Largest

The biggest event that took place in China's Internet industry in 2007 should be the successful listing of Ma Yun's Alibaba in Hongkong. In addition, China's other Internet Co Baidu, which is worth showing off, has created a high price of $429.19 per share in the US market in 2007.

The lucky number 1688 (Alibaba Hongkong stock code), together with the Chinese characteristics revealed by the mysterious management culture of Alibaba, has laid the glory and embarrassment of Alibaba's largest Internet company in China.

As Baidu C2C trading platform is ready to go online in 2008, Robin Li's Internet kingdom will turn from the focus of search to omnipotence, and Baidu's strong international background and local color, especially its huge return to investors since listing, may enable it to continue to maintain the title of the strongest Chinese Internet company.

However, no matter from the strongest to the largest, or from the biggest to the strongest, the two giants of China's Internet industry will be the 2008 most powerful Internet companies in China.

Alibaba: the biggest?

The Alibaba successfully launched its stock market in Hongkong in 2007 and quickly became China's largest market value Internet Co. This obviously represents the opening of the Internet empire, which has been established by Ma Yun. The Empire composed of B2B, search, C2C auctions, payments, advertisements and so on has already seen the clue.

However, it is precisely the words "the biggest market value" that make the market feel panic.

In an interview with the daily economic news, Miss Zhang, a IT analyst at Shanghai Yi Fan consulting company, made it clear that Alibaba's "largest market value" had a great risk bubble, so it could only be the largest, but certainly not the strongest.

In fact, although the opening price of Alibaba was HK $30 on the first day of its successful listing, its stock price was HK $13.5, or about 122%.

But yesterday's closing price was only HK $29.05, that is to say, although the Hongkong stock market is in the bull market, buying Alibaba on the day of listing has become a real "investor".

As a matter of fact, Goldman Sachs, the world's leading investment bank, gave a "sell" proposal in its first rating of Alibaba in December 10th this year. Goldman Sachs said that the downside risks faced by the company include trading activities, retaining customers and competing with search engines.

According to a report by Morgan and Stanley on Alibaba, "the daily economic news", the report thinks that Alibaba's investment has three possible advantages in the future, but there are five risks at the same time.

Therefore, Alibaba was given a rating of "holding the sidelines".

The basic value of the report to Alibaba is HK $26.3.

Baidu: the strongest?

Miss Zhang believes that Baidu should be the strongest Internet company in China in terms of market position.

Once Baidu enters the C2C field on the basis of search, its traffic determines that Baidu must be one of the largest C2C enterprises.

The most exciting thing about Baidu is its return on investment. On the last trading day, Baidu closed 380.45 dollars, while its 52 week high price reached more than 420 dollars, the lowest price was only 92.80 dollars, so the investment return was incomparable to traditional Internet companies such as Alibaba.

According to a public report, StephenJu, a RBC capital market analyst, pointed out in a recent report that Baidu's fourth quarter performance will be better than expected, and the growth rate of Baidu's growth rate will be raised to 17%, higher than the 15% expected by the market.

The analysts believe that the development of e-commerce business and brand advertising business pushed Baidu to the center of China's Internet market, and Google has experienced a similar stage in the US market.

Search engine: Baidu has won the YAHOO search in the field of search engine. Baidu has always been the leader.

The third quarter search engine Market Research Report released by AI research released in 2007 shows: "Baidu's third quarter revenue reached 497 million yuan, occupying 60.8% of the share of search engine revenue."

The relevant data show that YAHOO accounts for only 10.4% of the share of search engine revenue.

From the data point of view, Baidu has clearly won YAHOO in search area.

Wu Zhimei, Baidu's public relations department, told the daily economic news that in January 2008, Baidu will officially enter Japan, so Baidu will gradually become an international search enterprise.

Meanwhile, Baidu is constantly trying to find new profit models based on search engines.

In June of this year, YAHOO launched the Chinese search product based on the concept of "search 3" - omnipotent search.

In an interview with the daily economic news, Xu Yang, YAHOO PR Manager, said: "the Chinese Internet has great room for growth. China YAHOO also has great opportunities, and there will be bright prospects in the future market."

Can the mother of Ali be raised?

Advertising rank is Baidu's most accepted profit model. In addition to its efforts in competitive search, Baidu has also launched Baidu alliance, and Baidu TV has perfected cooperation in advertising alliance.

Ari analysis said, "this initiative has improved the advertising form of Baidu alliance, and will certainly attract more advertisers' input."

According to AI's analysis of the estimated market share of China's Internet advertising alliance over the past 07 years, the Baidu alliance accounted for 37.7%, and the scale effect advantage was obvious.

Unlike the Baidu, Alibaba's Ali mom introduced the concept of "advertising as a commodity" for the first time.

Alibaba's public relations manager, Tao Ran, said: "Ali mother is to help tens of millions of Chinese SMEs and small and medium-sized websites get more Internet advertising value."

He also gave the specific data: "as of November 2nd, Ali mother website has brought together more than 15 small and medium-sized websites and more than 135 thousand personal blog sites, more than 380 thousand advertising sites, more than 1 million registered members, covering more than 1 billion PV/ days of small and medium-sized websites. It is the largest online advertising trading platform in China."

The problem is that the mode of Ali's mother seems to be the pattern that Ma Yun defeated eBay, that is, non-profit.

Ma Yun has made it clear that the intention of founding Ali mother is to thank the small and medium sized websites that support Taobao and Alibaba for three years.

Can the non profit model defeat Baidu's profit model?

Only 2008 of the market can speak.

Can C2C: Baidu beat Taobao?

If you talk about C2C, the position of Taobao boss is certainly not questioned. But Baidu announced that it will enter this field. How can 2008 of the best play be launched?

Wu Zhimei said that to enter the C2C market, we need to evaluate the overall strategic elements.

According to AI's research, in April 2007, the number of users of C2C e-commerce websites was 63 million 803 thousand, of which 31 million 410 thousand people visited the C2C e-commerce website before visiting the search service, accounting for 49.2% of the total coverage. This shows that e-commerce depends on search to survive and develop.

On the one hand, Baidu occupies 70% of the market share of search engine. In addition, we also have considerable advantages in terms of technology and community.

But it is not so easy for Baidu to beat Taobao on C2C.

According to the third party authority survey in 2007, Taobao occupies more than 80% of China's C2C online shopping market share.

These figures also indicate that Baidu has a long way to go to shake Taobao's leading position in the C2C market.

Yang Weiqing, President of AI consulting, believes that "the strategy of Baidu C2C is indeed the basis for everyone to see, and e-commerce is just beginning, but this is not what we want to do well," he said. "C2C will cost Baidu a lot of energy," he said.

Will the entry of Baidu bring more uncertainty to Taobao's profitability?

We can only wait and see.