Going Global & Managing Global Businesses Case Study

Yandex, Russia's Search Engine: Googling for Growth in Google's Backyard

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Abstract:
The case primarily deals with how Yandex, the leading search engine of Russia, banked on its advantage of being a local player in competing with Google. Google, a fortified player in the global arena, had to swallow a bitter pill in the Russian search engine market as Yandex continues to be the market leader with a mighty share of 54%. Google, on the other hand, had to be contented only with a miniscule market share of 6%, which after offering several innovative services staggered to a mere 20%. Yandex’s command over the complex Russian grammar coupled with factors like the peculiar business environment in Russia, the government policies and competition from domestic players are posing serious challenges to Google in gaining a market share.

In 2009, buoyed up by its success in Russia, Yandex expanded its business into the US – considered as the hub of Information Technology (IT) and the birthplace of giant IT companies like Yahoo!, Microsoft and Google. As a mark of its entry, it challenged the supremacy of Google and claims to have search technology, which is much advanced than that of the former. The company is primarily targeting Russian-speaking Internet users in the US, who account for one-fourth of the US population, and is aiming to increase its business in the dotcom segment. However, the big question is – to what extent will Yandex be successful in marking its presence in the US search engine market amidst fierce competition among the existing players.

Pedagogical Objectives:

• To understand the nature and business model (including the revenue model) of firms in the search engine business
• To study the nature of Russia’s search engine market and do a competitor analysis
• To examine and analyse the factors responsible for Yandex’s success in Russia’s search engine market
• To debate and critically evaluate Yandex’s decision to set up operations in the backyard of Google instead of any other place or country.

Contents:

• Internet Penetration in Russia
• Competition between Yandex and Google in Russia
• Yandex.ru vs Google.ru
• Yandex Expanding into Google's Backyard: The Viability

Keywords : Business Strategies, Business Models, Competitive Strategies, Search Engine Market, Yandex, Russian Search Engine Market, Google, Google's Competitors, Russian ISP Market, Competition Vs Collabration, Positioning, Emerging Markets Companies