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Baidu and Google in China's Internet Search Market: Pathways to Globalisation and Localisation

Published 27 Mar 2009
Reference 5581
Topic Strategy
Region Asia
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Prizes & Awards

Winner of 2009 EFMD Award, Emerging Chinese Global Competitors Category

Summary

The case describes the battle between Google, the world’s leading search engine, and Baidu, a local entrepreneurial firm in China. In 2009, Baidu’s internet traffic share in the country was over three times that of Google and Yahoo!China. Would Google utilise its global resources to impose its dominance in China? Could Baidu defend its leading position?

Teaching objectives

This case studies competitive strategies in a platform-mediated network business. It discusses (1) business-model evolution (value creation and capture); (2) analysis of platform business (two-sided market, critical mass, network externality); (3) sustainability of leadership position (attack and defence); (4) global strategy (localisation vs. globalisation); (5) business ethics and government relations.

Keywords
  • Online Search Market
  • Platform Competition
  • Localisation
  • Network Externality
  • Global Strategy
  • Sustainable Competitive Advantage
  • International Business
  • China
  • IAF 08/09
  • IAF 2520404