Google vs Baidu in China

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Case Study Baidu vs Google The goal of this case is to broaden our knowledge of new business models and that of how local companies may struggle against foreign competition. You are asked to answer the following questions: 1 / What led to Baidu's market dominance? Compare the two business models and their evolution 2 / How do you recommend Google to do in China? Compare Google position with the one of other companies in the internet-related industries. What can we learn from this comparison? 3 / How do you recommend Baidu to do in the international market? Question 1 China witnessed the highest economic growth in the world since the adoption of its reform and openness to the outside policy.…show more content…
* Advertise-side strategy: Baidu’s advertisement model was option based such as paid for performance and paid search model other that they also made a model based on Bid for priority placement of the links in keyword search and this bid model was a tremendous success to Baidu as the competition for the keywords goes the higher the Bid goes leading to more revenue generation. Baidu’s advertisement model increased the ability to search the needs on the customers and show them the advertisement they need. Nevertheless the Paid for performance model helped in decreasing the advertising cost for the advertisers which helped in getting new and larger number of customers. * Development strategy: Baidu’s development strategy was expending it’s market from domestic into International by introducing Baidu into the NASDAQ on August 2005 that is 5 years after the dot-com peak within which it has broken the record as the one of the biggest trade ever where it’s share saw tremendous increase from $27 to $122 representing 354% of its growth and that was a remarkable move which allowed Baidu to gain more revenue and made it valuable with $4 Billion company and customer recognition , boost users confidence, and attract more and more investors in the long term. Google’s Business Model While on the other Hand
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