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Yandex

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Raj Krishnan

on 24 March 2013

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Transcript of Yandex

The Global Search Engine Industry The Russian Search Engine History and Development During the early development of the web(early 1990), search engines where purely based on information search from the web servers.(Veronica and Jughead) It was only in 1994, an ‘all text’ crawler search engine was created to common users for information search- WebCrawler. 1995 saw an upsurge with more web search engines created and added in the industry due to increase in popularity and appeal-To search web pages of interest. By the end of 1998, an industrial cluster was formed with the entrance of Google, Yahoo and Netscape. Google started with selling search terms for businesses in 1998, only to change the pattern and revolutionize the Global search engine industry years later. Yandex created its search engine in 1997 in Russian language. Currently, is the largest search engine in Russia and the 4th largest in the world. SEARCH ENGINES BY 1999 Global Market Shares Source: Nielsen Stat 2012 Total Revenues - Search Engines Sources: Nielsen Stat, The Guardian, Financial Times (2012) Key Players Russian Search Engine Market Shares (2011) Source: Liveinternet.ru, 2011 A localized search engine- language advantage

Continuous innovation for Russian-speaking internet users

Exclusive Applications for the Russian people Success Factors of Yandex vs. Yandex images Yandex.traffic Other services Overview - Nature of Competition vs.
Google lacks understanding of Russian culture and language.

Yandex enhances its services frequently.

However, Google is gradually gaining market share in Russia. History of Yandex Russian Search Engine Industry vs. Conclusion THANK YOU
Yandex - One entry strategy based on its portal

Mail.ru - represents a vast group of stand-alone sites and services (Email, IM, Social Networks, E-commerce, search etc.)

Strong in different market segments -
Yandex is stronger in search
Mail.ru is stronger in Social Networks

Different Business Models -
Yandex - Relies Heavily on Advertisements (94% of revenue)
Mail.ru - Diversified Model - Generates revenue from: Online games, Internet value added services, advertising (38% of revenue) Global search engine industry has seen tremendous progress over the last decade and continues to grow significantly with few dominant players.

Google, yahoo and Bing are currently leading the global engine industry in major market shares.

Yandex, has been the dominant force in the Russian search engine market with over half of the market share and continues to grow significantly.

Other players in the Russian search engine industry have failed to pose a threat to Yandex’s success, until now.

Google.ru has been offering marginal resistance to Yandex’s success with merely impressive growth trajectory against yandex.

Yandex’s growth sustainability remains on course, however market dynamics could change google.ru's position positively against yandex Russia. 1990: Arkady Volozh and Arkady Borkovsky developed MS-DOS software for patents and goods classification-In Russian language [full text].

1993-1996: Volozh's company Comptek international continued developing its search technologies and released software for searching through the Bible and Russian classical literature

1997: Yandex.ru launched as the first Russian search engine, developed by Comptek.

2000: Yandex was incorporated as a standalone company by Arkady Volozh

2001: Yandex launches the Yandex.Direct advertisement network for advertisement management.

2011: Yandex raised $1.3 billion in an initial public offering on NASDAQ. Biggest IPO for IT services company after Google. References BBC Business. 2012. AOL sees revenue growth for first time in eight years. Available: http://www.bbc.co.uk/news/business-21384583. Last accessed 01th March 2013.

Compete. 2012. global website traffic. Available: http://www.compete.com/us/. Last accessed 28th February 2013.

EWDN. 2011. Yandex vs. Mail.ru Group, the two behemoths of the Russian Internet. [ONLINE] Available at: http://www.ewdn.com/2011/05/19/yandex-vs-mail-ru-group-the-two-behemoths-of-the-russian-internet/. [Accessed 06 March 13].

EWDN. 2013. Rambler shuts down services to focus on news aggregation, seeks co-investor for Rambler-Avia, Price.ru and Begun. Available: http://www.ewdn.com/2013/02/19/rambler-shuts-down-services-to-focus-on-news-aggregation-seeks-co-investor-for-rambler-avia-price-ru-and-begun/. Last accessed 03rd March 2013.

Financial Times. 2013. Yahoo! Reports Fourth Quarter and Full Year 2012 Results. Available: http://announce.ft.com/Detail/?DocKey=600-201301281605BIZWIRE_USPRX____BW6384-1. Last accessed 03rd March 2013.

Google. 2013. Second Quarter 2012 Financial Results. Available: http://investor.google.com/earnings/2012/Q2_google_earnings.html. Last accessed 01th March 2013.

liveinternet.ru. 2011. переходы с поисковых систем. [ONLINE] Available at: http://www.liveinternet.ru/stat/ru/searches.html?slice=ru. [Accessed 02 March 13].

Marketing Land. 2012. Microsoft Delivers Strong Quarter. Available: http://marketingland.com/microsoft-delivers-strong-quarter-17-4b-revenue-bing-division-sees-smaller-loss-10394. Last accessed 03rd March 2013.

Marketing Land. 2012. Microsoft Delivers Strong Quarter. Available: http://marketingland.com/microsoft-delivers-strong-quarter-17-4b-revenue-bing-division-sees-smaller-loss-10394. Last accessed 03rd March 2013. Source: East West Digital News, 2011 Rambler losing out market share - 11% in 2008 to just 1.5% in 2011

Jan 2011: Rambler approached Google and Yandex for replacing its search engine with a partner tool

June 2011: Yandex partnered with Rambler (Yandex, 2011)

February 2013: Rambler closed down some of its services (mapping, Photo Hosting, Dictionary etc.)

Rambler is no longer a search platform, it is a media tech platform Source: East West Digital News, 2013 Questions? Nielsen-Net. 2012. Search Engine Market Share. Available: http://www.nielsen.com/us/en/nielsen-solutions/nielsen-measurement/nielsen-online-measurement.html. Last accessed 02 March 2013.

Pragada, S. 2009. Yandex, Russia's Search Engine: Googling for Growth in Google's Backyard. ISBCDC, 1-19.

Reuters. 2012. Baidu revenue and profit growth rate slow in fourth quarter. Available: http://www.reuters.com/article/2013/02/04/us-baidu-results-idUSBRE91310020130204. Last accessed 28th February 2013

SEO and SEM tips for Russian search engines, 2013. Russian paid search expenditures up by 44% in 2012. [online] Available at: <http://www.russiansearchtips.com/category/russian-ppc/> [Accessed 10 Feburary 2013 ].

Yandex. 2011. Yandex Partners with Rambler. [ONLINE] Available at: http://company.yandex.com/press_center/press_releases/2011/2011-06-23.xml. [Accessed 20 March 13].

Yandex company. Yandex Traffic Jam Technology Overview. [online] Available at: <http://company.yandex.com/technologies/traffic_jams_technology.xml> [Accessed 10 Feburary 2013 ].

Yandex. 2013. Yandex Labs. [ONLINE] Available at: http://company.yandex.com/general_info/labs/. [Accessed 02 March 13].

Yandex. 2013b. History Of Yandex. [ONLINE] Available at: http://company.yandex.com/general_info/history.xml. [Accessed 01 March 13].

Yandex. 2013c. Full-Year 2012 Financial Results. Available: http://ir.yandex.com/releasedetail.cfm?ReleaseID=741167. Last accessed 20th February 2013. References (2) Outline GLOBAL SEARCH ENGINE INDUSTRY
History and Developments
Number of Search Engines
Global Search Engine Industry Market Shares
Total Revenues

HISTORY OF YANDEX

RUSSIAN SEARCH ENGINE INDUSTRY
Key Players
Russian Search Engine Market Shares

SUCCESS FACTORS OF YANDEX

COMPETITION
Yandex Vs. Mail.ru
Yandex Vs. Rambler
Yandex Vs. Google

CONCLUSION
Full transcript