Google China Case Study: Google In China
The search engine is very user friendly; it is this simplicity that has made it the number one search engine in the world (Google vs. Baidu, n.d., “Abstract”, para. 1). This has made the company very popular among other companies wishing to pursue online advertising. By using its AdWords and AdSense technologies the company has been able to capture a large share of companies wishing to advertise online. The opportunity to buy advertising through Google is sought after because Google has the ability to target very specific markets of people. Google’s well-known success has made its company’s shares very favourable. It is these business and revenue models that have helped Google become the number one search engine in the world.
Baidu’s business model is based on tailoring its search engine to meet the needs and preferences of the people living in China. The company makes its revenue from “[its] online marketing services [which include] a pay-for-performance (P4P) platform and tailored solutions”, it was also the first company in China to use this method, and therefore attractive in the eyes of its customers (Yin & Yulin, 2010, p. 4). Baidu captured the Chinese market “because it was cost-effective and measurable” (Yin & Yulin, 2010, p.