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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Brief History of Search Engines Search engines helped gather information by powering search sites. They used 'spiders' - specialised software programs - which requested pages like browsers did. The web pages were crawled and added to the search engine index (also known as catalogue). Users could enter keywords and phrases (queries) for the type of content they were interested in. The search engine connected this query to the search engine index and then returned a ranked list of websites and summaries of content that bestmatched the criteria...

Search for a Business Model Early on, search was all but dismissed and portals usually outsourced it. This was also how search engines primarily made money - by providing search services to other websites. Among the earliest business models was that of banner advertising, where a graphic image and link were displayed. As the popularity of search grew, so did new ways of monetising it. Search revenues came by way of paid inclusion, paid listing or contextual advertising...

Google and the Competition Microsoft and Yahoo! realised they lacked the first two requirements. Yahoo!, which earlier had outsourced its search to Google, sought to remedy this by buying Inktomi, the paid inclusion model pioneer, in 2002. Microsoft decided to develop its own technology. To have a paid search network, both companies gunned for Overture (that now included AltaVista and AllTheWeb), which Yahoo! eventually acquired...

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