Baidu SWOT Analysis | SWOT Analysis Baidu
Baidu, Inc., A Chinese established international technology company that is engaged in an internet search service providers. This search engine assists individuals to search for the required information and marketing solutions worldwide. SWOT analysis is a tool that is used by managers to evaluate their company’s working and strength. In this SWOT analysis, they find out their strengths, weaknesses, opportunities, and threats. In this Baidu SWOT analysis, we will talk about Baidu’s business environment and working. No doubt, Baidu is the biggest company in this industry. They maintain their position in the market by constantly reviewing their operations and strategic planning. In this analysis, we will understand Baidu’s internal as well as external strategic factors. It is a 2×2 matrix which is also called a SWOT Matrix. This set consists of 4 types of strategies:
- Strengths-opportunities (SO).
- Weaknesses-opportunities (WO).
- Strengths-threats (ST).
- Weaknesses-threats (WT).
Established: January 1, 2000
Head office: Beijing, China
Area Served: Worldwide
CEO: Robin Lee (co-founder)
Service: Search Engine
Industry: Internet
Type: Public
Number of Employees (2019): 38,000
Revenue: (2019) – US$ 15 billion
Net Income: (2019) a net loss of US$ 328 million
Baidu SWOT Analysis | SWOT Analysis Baidu
Baidu’s Strengths (Internal Strategic Factors):
Baidu is one of the biggest companies in its industry, so it has many strengths or strong points that enable the company to create a powerful market share. Let’s discuss some major strengths of Baidu:
- The major strength of Baidu is its free cash flow resources that allow them to invest in new projects or ventures in order to expand the company’s portfolio.
- Baidu has strong market strategies that make them above hand over its competitors.
- By entering new markets, Baidu has made a strong position. That’s why their revenue system and the economic cycle is rising day by day. This kind of growth makes it a powerful brand.
- Baidu arranges special programs to train their workers. Their skilled workforce is one of the biggest reasons behind the success of Baidu. These types of training programs make their workforce highly professional and motivate them to achieve bigger targets.
- With a professional team of customer relationship management, Baidu has successfully got loyal customers. They satisfy their customers by providing their best. That’s why they have a strong customer base.
- With automation in their working, Baidu’s product quality and consistency are increased. It is also a major strength of the company which makes it far better than their rivals or competitors.
- Successful and profitable acquisitions and mergers make the company highly competitive. With the help of these factors, they streamline their operations and dealing. Their supply chain network is very reliable.
- With its useful offerings and quality services, Baidu has a very strong position in tech-based companies. This thing allows the company to diversify its portfolio in order to give new and innovative products to customers.
Baidu SWOT Analysis | SWOT Analysis Baidu
Baidu’s Weaknesses (Internal Strategic Factors):
In this section, we will talk about the weaknesses of Baidu. If Baidu focuses on these weaknesses and finds effective solutions to solve these problems, then it can diversify its operations and earn more profits. Let’s discuss some major weaknesses:
- The marketing team of Baidu is very weak as they fail to promote brand or product effectively. However, their products are successful in terms of sales, but effective promotion and advertisement are a plus. They should focus on this issue if they want to increase their sales and revenues.
- The company fails to deliver new products. But they are going strong with their core offerings. It is imperative for Baidu to focus on new segments so that people can take advantage of their services. This is beneficial for the company.
- As compared to other companies, Baidu invests a major portion of their income in employee training. This thing can be the biggest weakness especially in a time of crisis. It is necessary for Baidu to consider this weakness and address this problem.
- Baidu is successfully working in many countries, but they need to focus on emerging markets by investing in the latest technologies. This is the major weakness of Baidu, so they need to invest in new sectors as many organizations are already doing.
- The financial team of Baidu is very poor. The difference between liquid assets and current assets is very huge. This weakness can badly impact the company’s work.
- Many organizations investing in research and development programs in order to expand their operations. But Baidu is still struggling to invest in this segment. Even though they invest a huge sum in this segment, but this is not enough as compared to its rivals and competitors.
- The biggest issue of Baidu is its cultural working. As they solve this problem by merging small companies, but this thing is still not in the favor of the company. The different work culture is the biggest weakness of the company.
Baidu SWOT Analysis | SWOT Analysis Baidu
Baidu’s Opportunities (External Strategic Factors):
In this section, we will talk about the opportunities for Baidu. They have the potential to diversify their operations and earn more revenues. Baidu should pay attention to these opportunities as given:
- The initiative of Government Green drive enables the company to diversify its products to different states and governments. It’s a big opportunity for Baidu to utilize this chance.
- Many governments announce free trading agreements which can be beneficial for the company. Now, companies can exchange their technologies and products without any restriction. Now, it totally depends on Baidu to enter the emerging countries to expand their reach and market value.
- It is important for Baidu to stabilize their free cash flow. In this way, they can invest in major new segments and products. They have the opportunity to invest their money in innovative technologies. This thing can open a big door of success for Baidu.
- With new environmental strategies, there are several opportunities emerges for Baidu. It is a big chance for Baidu to invest in new technology in order to acquire considerable market share in the latest product segments.
- It is imperative for the company to follow the trends and identify the consumer’s changing demands. Work accordingly in order to provide the best to your customers. This thing will create a huge revenue system and expand its new product category.
- Baidu should understand the power of online channels or platforms. Due to recent events, many companies earn huge profits from their online resources. It’s an opportunity for Baidu to invest in online channels in order to increase their growth and sales. Work and research properly before investing in online platforms.
- As people are spending their money on products, it is necessary for Baidu to target new customers to enhance their expansion and market value.
Baidu SWOT Analysis | SWOT Analysis Baidu
Baidu’s Threats (External Strategic Factors):
Due to the presence of big or heavyweight players in the market, there are several threats that can damage the company’s revenue system and image. Want to know these threats? Below, you will find some serious threats for Baidu:
- As we mentioned earlier that many organizations are investing in new technologies and products, these things can badly affect Baidu’s future and work. There is a chance that they may lose their worth if their competitors rise at this speed.
- Baidu is working in many countries globally, but political issues and currency fluctuations can be some serious threats for Baidu. They can impact their operation and can affect their revenue system. It is important to keep eye on geopolitical policies and changing market trends.
- Better offerings from the rivals at lower rates can also damage the company’s worth and value. These rivals offer new and innovative products at a reduced cost that affects Baidu’s product and revenue.
- New environmental laws and regulations can also threaten the company’s major products.
- The rise of local marketers or companies could be the biggest threat to Baidu. These local competitors can fill the gap with their offerings.
- Changing customer needs and online platforms could also threaten the company’s working. As Baidu is lacking in online presence, so it’s a big issue.
- Rising pay level protests like 15 dollars per hour and expanding costs in China can be a serious threat to the profits of Baidu.
Baidu SWOT Analysis | SWOT Analysis Baidu
Limitations of SWOT Analysis for Baidu:
Many experts consider SWOT analysis a useful tool for assessing any company’s working, but it has certain limitations. Let’s discuss the limitations of SWOT analysis:
- Some capabilities of any company can be their weakness and strength at the same time. It is one of the biggest limitations of SWOT analysis.
- This analysis shows the working of any organization or company, but it won’t show how to get a competitive edge in the market.
- As opportunities and threats are variable things, so it is really hard to predict the exact issues and solutions. This is also a major limitation of SWOT analysis.
- Many experts also considered SWOT analysis as an exaggerated analysis. They think it is not as useful as it looks. So, this kind of reservations makes the SWOT analysis poor and weak.
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