Baidu.com: China's Google?



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Code : COM0104

Year :
2006

Industry : Internet and e-commerce

Region : China

Teaching Note: Not Available

Structured Assignment : Not Available

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Baidu.com: The Formative Years The Company was set up by Robin Li and Eric Xu in December 1999 at California's Silicon Valley. It was incorporated as Baidu.com, Inc. (Baidu) in the Cayman Islands on January 18th 2000. Robin Li's mission was to provide the easiest way to find information on the Internet. To fulfill that mission, he started Baidu with his patent hyperlink analysis11 as its core technology. Since mid-2000, Baidu began to develop its business in China and started focusing onChinese search services. After several years of development, Baidu has become the largest Chinese search engine in the world. In September 2000, Sohu.com, one of China's most popular Internet portals, signed a strategic partnership with Baidu to provide a premier knowledge resource on the Internet. "Baidu's search technology addresses many Chinese-specific search-related needs that have never been addressed before by any other company," said Robin Li...

The Leader in the Chinese Search Market It was opined that Baidu's lead in the market reflected the strength of its technology. The company's local connections and home-grown business practices give it an advantage over its rivals. Baidu is nicknamed 'China's Google' as analysts observe that it imitates Google, but when it comes to strategy, Baidu is adopting a different approach. Statistics from Chinese consulting firm, iResearch, shows that in the first quarter of 2005, Baidu held a 37.4% share of the Chinese search engine market. Baidu was followed by Yahoo!, which held a 32.3% share and Google with a 19.1%. For the first quarter of 2005, Baidu recorded $5.519 million in revenues, and net profit of $303,000. "But such successes have created high expectations that could prove difficult to live up to"...

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