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Mergers, Acquisitions, Alliances and Synergies Case Study
Case Title:
Google vs Baidu.com (D): Google's Alliance Strategy in China
Publication Year : 2008
Authors: Shanul, Muthu Kumar
Industry: Internet Search & Navigation Services
Region: China
Case Code: MAA0168
Teaching Note: Available
Structured Assignment: Available
OR
Abstract:
Google after an unsuccessful stint in China has changed its approach by opening an office there, hiring a local to head operations and offering a censored version of its site in January 2006. The company, to increase market share, is taking the route of alliances with the major telecom and Internet operators in China and is also adding new services to its Chinese portfolio. Meanwhile, Google's nemesis in China - Baidu.com - is also not lying low and is becoming stronger. The company on the strength of its market share in China, ranks third worldwide. It too is forming alliances with multinationals struggling to find a foothold in China. The company has added a whole gamut of products to its offering. This case, the fourth in the series, Google vs Baidu.com, takes off from when Google starts its censored Chinese language site. The reasons for this are discussed briefly. Focus is on the strategies of the top two players, Baidu and Google, to win a larger market share in China. The case exhaustively details each player's strategy and the reasons for it. It facilitates a discussion on the results of their respective strategies. It sums up with leaving the readers to discuss who has gained in the ongoing battle. Has Google managed to find a place in China or are there issues that still need to be addressed?
Pedagogical Objectives:
The case is structured to let the students analyse and understand:
- The search engine market scene in China and why the international companies are finding it difficult to crack
- What strategies can companies follow for growth
- Advantages and disadvantages of alliances as a growth strategy in the Chinese Internet search space.
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; Mergers,Acquisitions,Alliances Case Study; Online Advertising; International Business; Legal Environment and Regulations
