However, Facebook's business model is simply so profitable that it certainly beats Baidu in a category where few companies can. Similarly, the five-to-one advantage Facebook holds in terms of its cash flow generation is enough to make this round a no-contest. Winner: Facebook 2. Durable competitive advantages Baidu and Facebook both dominate their respective markets. Though you can measure it several different ways, Baidu clearly controls the bulk of the Chinese search engine market both in terms of revenues and search volume; it is the fourth most popular site globallyand the most visited site in China. Similarly, Facebook is easily the world's largest social network, and its share of U.S. online ad-spending is second only to Alphabet's Google search engine. Either company would be tremendously difficult to dislodge from its leadership position in its core market. So, in terms of current competitive advantages, it's safe to say that Baidu and Facebook both enjoy them in spaces. Furthermore, Baidu and Facebook have been investing in technologies that should underpin our increasingly tech-laden futures.
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