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Baidu and Google in China's internet search market: pathways to globalisation and localisation

Author: Chen, Wei-Ru ; Wu, KuangzhenINSEAD Area: StrategyPublisher: Fontainebleau : INSEAD, 2009.Language: EnglishDescription: 27 p.Type of document: INSEAD CaseNote: Latest version available via https://publishing.insead.eduAbstract: The case describes the battle between world's leading search engine Google and China's local entrepreneurial firm Baidu. In 2008, Baidu's traffic share was over three times that of Google and Yahoo! China. Would Google utilize its global resources to establish its dominance in China? Could Baidu defend its leading position?Pedagogical Objectives: This case studies competitive strategies in a platform-mediated network business. It discusses (1) business-model evolution (value creation and capture); (2) analysis of platform business (two-sided market, critical mass, network externality); (3) sustainability of leadership position (attack and defense); (4) global strategy (localization vs. globalization); (5) business ethics and government relations.
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Latest version available via <a href=https://publishing.insead.edu>https://publishing.insead.edu</a>

The case describes the battle between world's leading search engine Google and China's local entrepreneurial firm Baidu. In 2008, Baidu's traffic share was over three times that of Google and Yahoo! China. Would Google utilize its global resources to establish its dominance in China? Could Baidu defend its leading position?

This case studies competitive strategies in a platform-mediated network business. It discusses (1) business-model evolution (value creation and capture); (2) analysis of platform business (two-sided market, critical mass, network externality); (3) sustainability of leadership position (attack and defense); (4) global strategy (localization vs. globalization); (5) business ethics and government relations.

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