Business Environment of Firm [Baidu]

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Business Environment of Firm [Baidu] by Mind Map: Business Environment of Firm [Baidu]

1. Industry Analysis

1.1. Sector: information and technology

1.1.1. Industry: Software and IT services

1.1.1.1. Subindustry Internet services

2. SWOT Analysis of Firm [Baidu] vs Competitor 1

2.1. Strengths (of Firm A vs Competitor 1)

2.1.1. 1. Dominant share of Chinese online search market

2.1.1.1. (>76% market share in Chiba, the world highest internet user population)

2.1.2. 2. Strong capabilities in Autonomous Vehicles (AV) technologies

2.1.2.1. development of AI in driverless technology combined with baidu map search

2.1.3. 3. Support of the government

2.2. Weaknesses (of A vs Competitor 1)

2.2.1. 1. Low global market-share

2.2.1.1. global market share is 0.66% in 2019, mainly targeting into Japan, Brazil, Thailand and Egypt

2.2.1.2. Google dominates local search engine market in many countries, has global market share of 88,47%

2.2.2. 2. Slowdown in advertising revenue compared to peers

2.2.2.1. advertising revenue growth in Q1 2019 was lowest with 3% (10% Q4 of 2018, 23% Q3 of 2018).

2.2.2.2. Baidu's peers Google and Yandex saw growth of 15,4% and 18% respectively

2.2.3. 3. High dependency on online marketing services for revenue generation

2.2.3.1. revenue coming from online marketing services: in 2016 is 91,5% and in 2017 is 86,2% and in 2018 is 80%

2.2.4. 4. Controversies over search results displayed by Baidu

2.2.4.1. Allegation of promoting its own platform named Baijahao, allegations that the patient's death due to treatment showing in Baidu search engine

2.2.4.2. somewhat the search result of Baidu is controlled by the government

2.2.5. 5. Product range: mainly provide internet services, not have other utilities such as software to support office working or other utilities

2.2.5.1. Google offers a wide variety of products, from internet services, advertising, software, hardware, clouding services (gmail, google drive)

2.3. Threats (to A vs Competitor 1)

2.3.1. third party apps or practices interfering with user experience

2.3.1.1. petrenation of other competitors to Chinese market, such as Google,

2.3.2. fluctuations in market values of investments

2.3.3. competitive risk of cloud-based services

2.3.4. changes in politics structure

2.4. Oppportunities (for A vs Competitor 1)

2.4.1. Growing fintech industry -> give more diversified opportunities

2.4.2. big share of local market -> control the domestic market share

3. Competitive Analysis (Top 3 Competitors)

3.1. 3: Alibaba

3.2. 2: Microsoft

3.3. 1: Google