Despite the search market in India being very small and amounting to less than $40 million in a year but the market is growing rapidly at about 33% yearly and so the Microsoft-Yahoo! deal is significant to India, Praveen Bhadada, engagement manager, Zinnov Management Consulting.
Speaking on the Microsoft-Yahoo! deal and its impact on India, Bhadada said, “Google is the dominant search engine in India and there are about 15 plus local search engines that have emerged in the last 2 years, for e.g. asklaila.com, justdial, guruji.com, mapmyindia.com, tolmolbol.com etc. covering niche areas. Unlike Baidu (search engine in China), they do not directly compete with the global giants such as Google, Yahoo or Microsoft.”
With presence of more than 35 million SMBs in India, and some of them relying heavily on search engine marketing to push their products across the globe, the
Microsoft-Yahoo partnerships can provide them a better second alternative, he said.
The rapid pace of broadband penetration in India will help both Google and Microsoft-Yahoo in the long run and help them gain larger share in markets such as India and China.
The deal will help both Microsoft and Yahoo! put a strong battle against Google, which currently enjoys more than 65% market share in the $25 billion plus global market for search engine marketing, said Bhadada.
In fact, Yahoo! globally accounts for close to 20% while Microsoft, with its new Bing search platform enjoys about 9% market share.
In the exclusive agreements, Microsoft will acquire a 10 year license to Yahoo’s core search technology and Bing will be the exclusive platform for all Yahoo! sites.
According to the official statement, Microsoft will compensate Yahoo! at an initial rate of 88% of search revenue generated on Yahoo!’s sites during the first 5 years of the agreement.
He said Microsoft will guarantee Yahoo!’s revenue per search in each country for the first 18 months following initial implementation in that country. “Complete integration may take anywhere between 18-24 months.”
The two will continue to compete in other common business areas such as email, web products, messaging etc.
However, dominance of Google may or may not be hampered, he said. Search major Google may be less worried with this agreement with Yahoo and Microsoft Google enjoys a big share in the market and the customer confidence is high on Google as compared to Yahoo and Microsoft. “Unless the actual number of searches increase for the user, this deal may not bring in any fruitful results for the two and the complete integration will only happen by 2011-2012 timeframe,” he said.
But some believe that the Bing platform for advertisers is relatively inferior to that of Yahoo and but alternatively, users will now have a stronger alternative that will provide them scale and if the combined search can provide users a better experience, then they may potentially eat up into Google’s share in the future.
CXOtoday.com
Showing posts with label Stronger. Show all posts
Showing posts with label Stronger. Show all posts
Thursday, July 30, 2009
Monday, January 5, 2009
India to emerge strong from the global meltdown
The report said India, along with China, Russia and South Korea would emerge stronger from the global financial crisis as they enjoy strong economic foundations, higher growth rates and sound monetary policy measures.
US, China and Japan were ranked first, second and third respectively.
India ranked 19th in terms of budget balance as a percentage of the gross domestic product (GDP) and 12th in terms of public debt as a percentage of the GDP.
The ranking was based on seven economic indicators: size of the economy, spending power, tax structure, interest rate policy, budget balances, debt burden and foreign exchange reserves.
US, China and Japan were ranked first, second and third respectively.
India ranked 19th in terms of budget balance as a percentage of the gross domestic product (GDP) and 12th in terms of public debt as a percentage of the GDP.
The ranking was based on seven economic indicators: size of the economy, spending power, tax structure, interest rate policy, budget balances, debt burden and foreign exchange reserves.
Friday, November 28, 2008
Terror Attacks: Mumbai Will Emerge Stronger!
Each time Mumbai has been the target of a terrorist attack, it rebounds stronger and more resolute.
Mumbai, the commercial capital of India, comes under attack from terrorists yet again, at a time when the world's second-fastest growing economy is seen by many analysts to be a critical part of the solution in fighting a global recession.
Mumbai is one of the world's top 10 centres of commerce and contributes to about 5 percent of India 's GDP and accounts for 25 percent of the industrial output, 40 percent of maritime trade, and 70 percent of capital transactions to the economy. Mumbai's per-capita income is Rs. 48,954 ($990) which is almost three times the national average.
"Mumbai is a very resilient city," says Bundeep Singh Rangar, Chairman, IndusView Advisors Ltd., the India-focused cross-border advisory firm. "Each time it's been the target of a terrorist attack, it rebounds stronger and more resolute."
Post the July 11, 2006, Mumbai train bombings, for example, as a show of investor confidence, the Bombay Stock Exchange (BSE) had rebounded, starting the day with the BSE Sensex Index up by nearly 1 percent in morning trade. Foreign investors also retained confidence, with the Sensex up almost 3 percent at 10,930.09 at the end of the day's trade.
However, both the Bombay Stock Exchange and National Stock Exchange were closed today as the security personnel continue with their efforts to nab the terrorists.
India is set to register a strong growth of about 7.5 percent this financial year, a marginal drop from 9 percent that the country achieved last year when compared to emerging markets peer China that will drop to similar level from about 12 percent last year, its lowest since 1990, according to estimates.
This firm footing that the Indian economy finds itself in, has a lot to do with the contribution from Mumbai, its financial capital that brings 40 percent of foreign trade, 60 percent of customs duty collections, 40 percent of income tax collections, 20 percent of central excise tax collections, and Rs. 40,000 crore ($10 billion) in corporate taxes to the Indian economy.
This apart, the city hosts headquarters of a number of Indian financial institutions such as the Bombay Stock Exchange, Reserve Bank of India , National Stock Exchange, the Mint, as well as the corporate headquarters of many large Indian companies, including the three largest private sector companies: Reliance Industries, Tata Group and Aditya Birla Group, and numerous multinational corporations. Most of these offices are located in downtown South Mumbai which is the nerve centre of the Indian economy.
Strategic industries
Mumbai is home to Bollywood, the largest film making industry in the world; the Bhabha Atomic Research Center (BARC), which will see its role gaining significance once the Indo-US civil nuclear deal comes in to force.
Other prominent industry sectors in the city include aerospace, optical engineering, medical research, information technology, computers and electronic equipment, shipbuilding and salvaging, renewable energy and power.
Mumbai, the commercial capital of India, comes under attack from terrorists yet again, at a time when the world's second-fastest growing economy is seen by many analysts to be a critical part of the solution in fighting a global recession.
Mumbai is one of the world's top 10 centres of commerce and contributes to about 5 percent of India 's GDP and accounts for 25 percent of the industrial output, 40 percent of maritime trade, and 70 percent of capital transactions to the economy. Mumbai's per-capita income is Rs. 48,954 ($990) which is almost three times the national average.
"Mumbai is a very resilient city," says Bundeep Singh Rangar, Chairman, IndusView Advisors Ltd., the India-focused cross-border advisory firm. "Each time it's been the target of a terrorist attack, it rebounds stronger and more resolute."
Post the July 11, 2006, Mumbai train bombings, for example, as a show of investor confidence, the Bombay Stock Exchange (BSE) had rebounded, starting the day with the BSE Sensex Index up by nearly 1 percent in morning trade. Foreign investors also retained confidence, with the Sensex up almost 3 percent at 10,930.09 at the end of the day's trade.
However, both the Bombay Stock Exchange and National Stock Exchange were closed today as the security personnel continue with their efforts to nab the terrorists.
India is set to register a strong growth of about 7.5 percent this financial year, a marginal drop from 9 percent that the country achieved last year when compared to emerging markets peer China that will drop to similar level from about 12 percent last year, its lowest since 1990, according to estimates.
This firm footing that the Indian economy finds itself in, has a lot to do with the contribution from Mumbai, its financial capital that brings 40 percent of foreign trade, 60 percent of customs duty collections, 40 percent of income tax collections, 20 percent of central excise tax collections, and Rs. 40,000 crore ($10 billion) in corporate taxes to the Indian economy.
This apart, the city hosts headquarters of a number of Indian financial institutions such as the Bombay Stock Exchange, Reserve Bank of India , National Stock Exchange, the Mint, as well as the corporate headquarters of many large Indian companies, including the three largest private sector companies: Reliance Industries, Tata Group and Aditya Birla Group, and numerous multinational corporations. Most of these offices are located in downtown South Mumbai which is the nerve centre of the Indian economy.
Strategic industries
Mumbai is home to Bollywood, the largest film making industry in the world; the Bhabha Atomic Research Center (BARC), which will see its role gaining significance once the Indo-US civil nuclear deal comes in to force.
Other prominent industry sectors in the city include aerospace, optical engineering, medical research, information technology, computers and electronic equipment, shipbuilding and salvaging, renewable energy and power.
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