360 VS Tencent: unfair competition produces no winner

09:11, November 02, 2010      

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Shortly after the malicious battle in the dairy industry, the rivalry between Qihoo 360 and Tencent, two leading software makers in China, escalated after several companies published a joint statement accusing Qihoo of unfair play.

In the statement, these industrial leaders -Tencent, Baidu and Kingsoft-vow to severe all kinds of business cooperations with Qihoo. As a response, Qihoo retorts they are "jointly committing evil."

As early as February this year, Tencent pushed users to install the QQ Doctor, a security software with similar functions to the 360 Guard. The move, gave the biggest instant tool inventor as much as 40 percent of market share in China almost overnight. Later on September 27, 360 accused Tencent of spying on its users and leaking users' privacy. As a response, Tencent fabricated the next day that Qihoo had been investigated by the authorities on grounds of commercial campaign via pornographic websites.

Amid bouts of oral accusations, other stakeholders like Kingsoft, Kaspersky, Rising and other software makers, who profit mainly from selling anti-virus softwares, also joined the scuffle against Qihoo 360.

"Whoever dominates the market exclusively will not bring real benefit to consumers. I hope the fight continues," commented one net user.

"I support fair competition, but unfair play turns online users and others into victims," said another user of both QQ messenger and 360 anti-virus software.

It's not a rare scene to see companies to discredit one another in China. The word-war between dairy companies Mengniu and Yili leaves consumers with more distrust in dairy products made in China.

"Events like this are becoming increasingly common in China. In an era of excessive production, enterprises seek more profit and market coverage through cut-throat competition instead of improving their core technology and corporate culture, a sign of plain immaturity," said Yu Fei, CEO of Langezhiyang International Sales Consultant Principal.

"Deficiencies in proper development strategy; unwise direction of the company and unqualified employees can also lead the company in to vicious competition," explained Yu when interviewed by the Global Times.

Chinese companies should learn about respect to their rivals, and learn from companies like Mcdonald's and KFC or Coca Cola and Pepsi, said Zhou Yangmin, the director of Yangmin Management Company in Zhengzhou. "Everyone is in the same boat. None can benefit if the boat leaks," said Zhou.

"Chinese companies should learn to develop a benign competitive strategy combining cooperation with competition.," add Yu.

Source: Global Times


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