Baidu: China's Leading Search Engine
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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.
"We believe in local markets; we believe that the search engine is not a pure technology phenomenon, but has close ties with culture and language. We understand the Chinese language and culture better, therefore can deliver the best user experience for Chinese users. If we ever get into other markets, we will run a very local team with local servers too. This is our true differentiator in China."
- Robin Yanhong Li, Chairman and CEO of Baidu.com, Inc., in 2004.
"Baidu's local know-how and attentive customer service create barriers for its competitors. We feel that Baidu was able to extend its lead over its peers by leveraging its strong sales support to advertisers and/or agencies. This customer-centric strategy enables advertisers to get greater control of their marketing programs, thus creating demand for Baidu's services over its competitors."
- James Lee, Analyst, WR Hambrecht , in 2006.
"Baidu has established a relatively narrow economic moat around its brand that could eventually be eroded."
- Haibo Zhang, Research Analyst at Morningstar, Inc. , in 2006.
1] Bambi Francisco, "Baidu's CEO Builds up for IPO,"www.marketwatch.com, June 18, 2004.
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