Google vs Baidu.com (A) Google's Business Model



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Code :BSM0042

Year :
2008

Industry : Internet and e-commerce

Region : US China

Teaching Note:Available

Structured Assignment :Available

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Abstract: Google is the most visited search engine with a 62.4% market share and is the most profitable with $16.5 billion revenues in 2007. The company has seen stupendous success in a short span of time. Its PageRank technology, AdWords and AdSense advertising programmes and product line-up has ensured that it stays ahead of competition. The changes it has made to its business model signify its business depth. Google, after conquering the US market, started offering its services in other countries - through various search interface languages and in a number of local domains. Google's rise and profitability has made other international Internet giants like Yahoo! and Microsoft realise, albeit late, the lucrativeness of search. They are making efforts to grow in this direction. Google's growth has attracted more competitors and complaints. This case, the first in the series Google vs Baidu.com, details the rise and growth of Internet search engines. Providing a brief historical outlook, it focuses on how Google through its innovative technology rose to success very soon. Revenue-earning models of Internet companies are dealt in greater detail, with focus on how Google makes money. The case also details Google's add-ons to its products and services, for ensuring growth and sustainability. This case helps discuss how Google has grown over the years. What has been the company's strategy? What is its business model and what is so unique about it? Finally, it questions whether this business model is exportable - can Google use the 'one size fits all' approach to its business model?

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Pedagogical Objectives:

  • Search engines' business and revenue models
  • Google's business model and other factors, like its technology, products and services, which have led to its success
  • The rationale behind Internet companies targeting overseas markets
  • Whether search engines business models and that of Google is exportable

    Keywords : Google; Baidu.com; China's Search Engine Market; Business Model; Globalisation and Localisation; CAGE Frame Work; Alliance Strategies; Acquisitions and Partnerships; Chinese Google; Government Business Environment; Internet Censorship; Online Advertising; Innovation Management Case Study; International Business; Legal Environment and Regulations

    Contents :
    Brief History of Search Engines
    Search for a Business Model
    Google and the Competition


    Case Introduction >>


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