Baidu.Com

Key Value drivers

Leader in Chinese-language search

Given the complexity of the character based Chinese language, Baidu invested heavily to develop its proprietary search technology. Co-operating with various universities and scholars, Baidu developed Chinese language processing search techniques, including spider systems, indexer systems, and search systems. Given Baidu’s local knowledge, understanding of consumer behavior, advertisers needs and significant R&D investment allowed the firm to differentiate itself from other local players

        Focused China strategy

Unlike its global competitors, Baidu has a China-focused strategy from the very beginning. The company’s R&D, sales and marketing teams consisted of mostly local talent and were based entirely in China. It delivers products and services, such as MP3 search targeted specifically to Chinese Internet users. Additionally, given that China was the only market the company was targeting as of 2005, which had full attention and controlled the firm’s resource allocation

        Larger User Base

As an early entrant into China’s internet search market, Baidu enjoyed certain advantages by establishing its brand name early amongst Internet users. It promoted online community-based products such as post bar to retain customers. In addition, founders were Chinese nationals and its operations were based entirely in china. Being the most recognized brand it won significant market share from supporters of international brands such as Google. The enabled Baidu to create a large volume of search traffic and a large Chinese Internet user base, which in turn attracted more advertising customers and generated more paid online advertising businesses.

        Well-Developed Distributor Network

Baidu had developed close relationships with its distributor network, by providing information and analysis to enable distributors to win more business. In 2005, Baidu had the largest distributor network for online paid search products in China.