Sohu Eyes Google's Market Share

DoNews, 3/24/10

Chairman Charles Zhang of Chinese internet company Sohu (Nasdaq: SOHU) has revealed that the company plans to seize market share abandoned by Google's departure with its own Sogou search engine. Zhang said that the quality of Google's search results have already begun to deteriorate due to redirection to its Hong Kong site, and that he expects to see Google's user base begin to dwindle after a period of time. Zhang said that Sohu will take advantage of this opportunity to ramp up its search business through the following tactics:

First, Sohu is already in the process of acquiring Google's former channels. Zhang revealed that Sohu had already begun talks with Google's partners beginning in late 2009, offering more favorable terms such as lowered minimums to open new accounts. Sohu's principle, Zhang said, is to "seize as much as we can."

Second, Sohu plans to improve its products to draw users away from Baidu (Nasdaq: BIDU) and toward Sogou. Zhang declined to reveal specific details, saying only that "there will be a surprise in a few months," at which time Sogou "will become an excellent search engine." Zhang also added that as part of plans to upgrade its Sogou series of products, Sohu will release version 5.0 of its Sogou Chinese input method editor that maintains a consistent connection to Sohu's online word bank, as well as a new "dual-core" Sogou browser.

Third, Zhang admitted that Sohu had already initiated contact with Google China's employees.

Zhang also said that Sohu will begin a marketing push with new slogans and advertisements, but declined to reveal further details.

Marbridge Consulting RSS Feed