There is one word that comes to mind when evaluating Baidu’s 2011 financial performance: gangbusters. Although Google CEO and co-founder, Larry Page, used that very same word to describe Google’s Q3 2011 earnings, this seems very applicable to the Chinese search giant’s outstanding performance in the year gone by.
Baidu’s release of its financial results last week revealed astonishing growth across the board, with total revenues and operating profit increasing by 83.2% and 91.4%, respectively, compared to 2010.
Stating the obvious, Baidu’s dominant position in the world’s largest internet market is unquestionably very desirable, but analysts have speculated that the Chinese market alone does not provide enough room for Baidu’s continuous exponential growth. Baidu founder, Robin Li, made it very clear on several occasions that the company’s ambition is to become a universally recognised brand, however, while Asia has been an obvious first choice for expansion, we have been awaiting the company’s first major move outside of that region.
And the Oscar goes to…
Last week, February 15, the Chinese Ministry of Commerce announced that Baidu is opening an office in Sao Paulo in order to gain a better understanding of the Brazilian and Latin American markets. Baidu has disclosed that this is the first step in its plans to challenge Google’s dominating position in South America, where it currently has around a 90 percent share of the total search market.
Do you think Baidu will stand a chance going up against Google in South America?
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