Tuesday, May 19, 2009

James Mitchell of GS does not believe the strike impacts Baidu

Thinks the sales workforce, around 3900, is probably
bloated from acquisitions, and needs to be trimmed
anyways. Baidu has reduced sales and marketing
expense as a percent of revenue from 24% to 13%
from 2005 to 2008. He expects it to go down to
9% by 2012. In the US, search companies automate
the process, and do not have a sales team. Baidu is
probably headed the same way.

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