Business Strategy Baidu
Q1) For this question, we will take a deep dive internal analysis of Baidu.
Firstly, let us take a look at tangible resources. Under this category, we have financial resources, organizational resources, physical resources and technological resources.
Financial resources [Tangible]
In 2007, Baidu earned about $86 million net income and $239 million in revenue (Ireland, Hoskisson, Hitt, p266). Majority of the revenue is contributed by an enlarged active online marketing customer base. We will elaborate details of the marketing activities under intangible resources. The accounts published show that Baidu is performing well financially.
Organizational resources [Tangible]
Baidu is incorporated in the Cayman Islands on January 18, 2000 by Robin Yanhong Li and Eric Yong Xu. Baidu provided its web services and online advertising services in China through contractual arrangements with its local subsidiary, Baidu Netcom. In August 2004, Baidu acquired domain name hao123.com. This is the Baidu’s largest traffic contributor and distributor of its P4P services and is based in Shanghai.
Physical resources [Tangible]
Baidu has a strong performance of $28.9 million in terms of return on assets (Ireland, Hoskisson, Hitt, p291). It was largely contributed by its strategic acquisition of businesses, assets and technologies that complemented its existing business. For instance, Baidu bought over the domain name of hao123.com.
Technological resources [Tangible]
Baidu focuses on searches in Chinese. This language requires two bytes to store each character as opposed to English. There is a key difference in terms of algorithms and behavior between single-byte and double-byte searches. Baidu also included a network of third-party web sites that incorporated their search box or toolbar. To improve its monetization algorithm in 2006, Baidu made used of relevant technology and implemented dynamic bidding and dynamic starting bid prices.
For intangible resources,
Firstly, let us take a look at tangible resources. Under this category, we have financial resources, organizational resources, physical resources and technological resources.
Financial resources [Tangible]
In 2007, Baidu earned about $86 million net income and $239 million in revenue (Ireland, Hoskisson, Hitt, p266). Majority of the revenue is contributed by an enlarged active online marketing customer base. We will elaborate details of the marketing activities under intangible resources. The accounts published show that Baidu is performing well financially.
Organizational resources [Tangible]
Baidu is incorporated in the Cayman Islands on January 18, 2000 by Robin Yanhong Li and Eric Yong Xu. Baidu provided its web services and online advertising services in China through contractual arrangements with its local subsidiary, Baidu Netcom. In August 2004, Baidu acquired domain name hao123.com. This is the Baidu’s largest traffic contributor and distributor of its P4P services and is based in Shanghai.
Physical resources [Tangible]
Baidu has a strong performance of $28.9 million in terms of return on assets (Ireland, Hoskisson, Hitt, p291). It was largely contributed by its strategic acquisition of businesses, assets and technologies that complemented its existing business. For instance, Baidu bought over the domain name of hao123.com.
Technological resources [Tangible]
Baidu focuses on searches in Chinese. This language requires two bytes to store each character as opposed to English. There is a key difference in terms of algorithms and behavior between single-byte and double-byte searches. Baidu also included a network of third-party web sites that incorporated their search box or toolbar. To improve its monetization algorithm in 2006, Baidu made used of relevant technology and implemented dynamic bidding and dynamic starting bid prices.
For intangible resources,