Baidu: China's Leading Search Engine

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Case Details:

Case Code : BSTR293
Case Length : 19 Pages
Period : 2002-2008
Pub Date : 2008
Teaching Note :Not Available
Organization : Baidu.com, Inc.
Industry : Internet Software
Countries : China

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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China's Google?

Analysts were of the view that the financial statistics had once again proved Baidu's position as a market leader in the Internet search market in China.

After releasing the financial results, Robin Yanhong Li⁷ (Li), Chairman and CEO, Baidu, said, "This was another excellent quarter for Baidu. Our revenue growth remained strong and is an indication of our ability to execute our strategy of providing the best possible user experience and service to our customers."⁸

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Table I
Key Financials of Baidu

	Q1 2008 (RMB million)	Q1 2007 (RMB Million)
Revenues	574.4	275.6
Operating profit	147.4	73.8
Other income	10.1	13
Income before income taxes	157.4	86.9
Income Taxes	-10.8	-1.4
Net Income	146.6	85.5

Excerpts >>

7] Robin Yanhong Li graduated from New York State University with a masters degree in computer science and then joined the Wall Street Journal's website to develop a real time financial information search system.

8] "Baidu Announces First Quarter 2008 Results,"www.ir.baidu.com, April 24, 2008.

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