Dear Reader,
Google, the infamous search engine now part of the company Alphabet Inc, has two credible global competitors - the Chinese search engine Baidu and the Russian search engine Yandex.
Yandex and Baidu have around 3 billion USD and 16 billion USD revenues annually respectively.
The problem with Yandex and Baidu is that they are mainly local search engines for Russia, Eastern Europe, former CIS, and China. Google is banned in China.
Actually Yandex has more relative revenue than Baidu from what could be explained from their respective market sizes. Yes, Google is the dominant search engine globally and the huge amounts of data it gets on a daily basis helps it maintain its edge. Russia and China, have enormous human potential with highly educated workforce, especially in Russia, and educated strength in numbers in China which could always produce brilliant scientists and technologists.
The larger US internal market helps Google make vast amounts of revenue. For a search engine to dislodge Google it has to really prove its algorithms produce much more relevant, semantic search based results. China is a leader in artificial intelligence, with Russia also gaining speed. Algorithms powered by artificial intelligence would power the next generation search engine which would better classify information.
That said, competing with Google is extremely difficult, as many search engine startups have found. Google has a first mover advantage, a huge database with user's preferences on which it could train its artificial intelligence algorithms and exceptional customer loyalty. A credible competitor has to provide a really unique and genius text analysis algorithm to be able to dislodge Google.
Yes, Russia and China have a good chance of doing that.
However, I think Google's main competitor is someone in a garage thinking how to change the world.
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Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.
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Respectfully yours,
Petar Posledovich
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