Abstract

Baidu.com, Inc. (Baidu) referred to as 'Chinese Google'is the leading Chinese language search engine, with a market share of 60.1% in China as of 2007. It was founded by Robin Li and Eric Xu in 2000 with the aim of offering Internet search solutions in Chinese. The majority of web surfers in China preferred Baidu as their primary search engine as it offered them a variety of features such as an MP3 search service, instant messaging, and online games. Baidu's investments in technology along with its focus on local content helped it in maintaining its lead in the fast growing search engine market in China. Its biggest rival was Google China, the second biggest search engine in China. It posed a great threat to Baidu with its technology and experience. The case discusses the rise of Baidu in China and examines in detail the reasons for its success. It concludes with a note on its competitors and the challenges Baidu faces in China.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the fast growing Internet market in China and understand the reasons for Baidu's success in the market.
• Analyze Baidu's launch and growth strategy in China and how it attained market leadership.
• Identify the future challenges faced by Baidu in China.

Keywords

Growth strategy, Competition, Market entry, Market leader, pricing, customer-centric strategy, e-commerce, Internet search market, search engine, Baidu, Google, China