Analysis of Growth Management Strategy in the Internet technology industry: the case of Baidu
Date Issued
2016
Date
2016
Author(s)
Lee, Hui-Yu
Abstract
Baidu Inc. is a company of China internet technology industry, incorporated on January 18, 2000 as a searching eingine company. By following the steps of Google, Baidu offered a Chinese search engine for websites, P4P commercial business model, and constructed an open-minded and creative organization culture. Baidu created the user searching behavior and became a leading national enterprise with both revenue and profit earned in 4 years. Baidu went public on August 5, 2005 on the NASDAQ exchange, rocketed 353.8% higher in their first day of U.S. public trading. Reaching about RMB66.4 billion dollars in sales revenue and RMB33.67 billion in total net profit, Baidu won the third place of scale in the Internet technology industry and in the web searching engine field. Baidu built a China-specific search ecosystem through constructed Baidu Union and served social media products, created a strong adhension between vendors and users, which made it to be a dominate web-searching company. In 2007, Baidu envolved in e-commerce domain, however encounterd greate difficulties while competed with other magnate. Baidu faced its watershed in 2008, not only because its core service ’web-searching service’ fell into moral problems, but also failed in internationalization and diversification strategies while competitors got greater success in both capital growth level and reveue scale. The study is aimed to analyze how Baidu’s grows strategies in different phases by case study method, and discuss the key success factors in each stage. First of all, it will define Baidu’s strategies, resources and capabilities which were used to identify the strait of diversitification that Baidu met. Baidu commits to transform to an internet intergrated entrance service provider on mobile devices. We will analyze how Baidu operates its dominant position to sustain its impact and status in China Internet technology industry. Keywords: Baidu, Inc., BIDU, Internet technology industry, Industry Analysis, Growth strategy, Resource-based view, Diversification growth strategy, Internationalization strategy.
Subjects
Baidu, Inc.
BIDU
Internet technology industry
Industry Analysis
Growth strategy
Resource-based view
Diversification growth strategy
Internationalization strategy
Type
thesis