eBay China was centralized to eBay headquarters in the U.S. which turned the table for Ebay in the Chinese market as this led to change of one of the factors mentioned as ownership and also a new COO was appointed with german origin and resignment of Shao Yibo came as mistrust for the people towards the company. Although eBay’s market entry strategies such as joint ventures, licensing, and acquisition are very effective and made eBay successful in global market and become the world’s largest online market place, the situation in Chinese market was totally different. EBay was popular and had a very good reputation in the U.S. and international market, but Chinese people did not know much about eBay.
You May Also Find These Documents Helpful
-
As we know, eBay’s China expansion strategy can be considered as failure, despite the fact that eBay entered this potentially rewarding market with caution. This cautious strategy was very unusual for eBay, because they used full-forced, head-on,…
- 546 Words
- 2 Pages
Satisfactory Essays -
With exceeding 3.7 billion, more than a half of the world’s population, and Internet usage in the region rapidly growth at 406 percent, Asia became an attractive and lucrative marketplace for eBay to expand their business. Since 1995, eBay enjoyed strong revenue growth and was a dominant player in online auction industry. With previous experience of extending their business in Europe, North America, Latin America and failure in China and Japan, eBay was once again struggling to compete in the Asian market.…
- 2747 Words
- 8 Pages
Powerful Essays -
The joint venture with Tom Online will allow eBay to enter the Chinese rapidly growing market. In 2007, China experienced a technology boom in which more people were using the Internet than ever before. Besides the rocket increase of Internet usage in China, E-Commerce is growing as well. With the power and influence of Tom Online, eBay has a unique opportunity to grab the market share of a billion people in China.…
- 462 Words
- 2 Pages
Good Essays -
1) EBay pursue international growth through acquisitions and partnership in related and unrelated business. eBay goal was to expand its international presence in an effort to create an on line global marketplace. In many of this international website, eBay had to adapt and provide local language and currency options to gain popularity. The best approach that eBay had was by forming partnership with local companies. This strategy helps them to understand local cultures and ensure that the company was meeting local need. eBay has had tremendous success in Latin America and Europe. But in Asia has been a failure, in Japan they had to pull out of the market due to the poor market share that they were able to get. In china they still struggling to gain market share so they decided to due joint venture to learn a little bit more about the local needs.…
- 288 Words
- 2 Pages
Satisfactory Essays -
Why does Ebay have problems in Asian Markets? This is the question to be answered in the first Case assignment of Business 401. In order to answer this question there must be discussion about Global marketing concepts, such as product, place, promotion, and pricing (the 4 p’s), method of entry, and entry decision. Then it is important to apply those concepts to the Asian Market. In the pages that follow I will discuss the marketing decisions of Ebay in their mission to expand into Asian markets. As well as, possible solutions to some of the decisions that didn’t work out so well.…
- 588 Words
- 3 Pages
Satisfactory Essays -
China was Best Buy 's second international venture, after its successful operations in the Canadian market. Best Buy ventured into China by opening a sourcing office in 2003, and at that time it planned to study and understand the Chinese market and also recruit talented employees locally in order to open its stores in China. Before it opened its own brand stores, Best Buy acquired a majority stake in Jiangsu Five Star Appliance Co., (Five Star Appliance) in May 2006. However, it faced some intensive competition from well-entrenched Chinese electronic retailers such as Gome and Suning. This paper will discuss the current situation Best Buy is facing by deciding how to enter the Chinese market of electronics, and this will be done through analyzing the strengths, weaknesses, opportunities and threats of the company Best Buy. In addition to studying the Chinese consumer and finally suggesting several solutions for the best way to enter the market giving its advantages and disadvantages.…
- 3178 Words
- 13 Pages
Powerful Essays -
The company eBay was found in 1995 and since then they have had much growth and success over the years. They became the dominant player in the online auction house industry through their unique business model. Their business model united buyers and sellers in an online marketplace and attracted 221 million registered users. Their unique business model enabled e-commerce at multiple levels including local, national, and international through an array of websites that they have acquired. eBay acquired several online competitors such as PayPal, Rent.com, Shopping.com and most recently a partnership with Xiu.com, eBay Style. These trading platforms allowed eBay to offer distinct services and target-specific market niches. This allowed them to penetrate new market spaces and attract a range of users. The company also expanded internationally and have been successful in certain markets. eBay was considered a leader in each of its market with the except of Japan and China. eBay’s first attempt into China’s market was through the acquisition of a Chinese online auction company, Eachnet. They integrated their global strategy platform to Eachnet’s Chinese operations, essentially changing how the website originally operated. Since then, the company has lost most of their market share to local competitor Taobao. After several years eBay then decided to partner with Beijing-based Tom Online. This indicated that eBay failed to adapt to local needs and successfully compete with China’s online auction market leader, Taobao. This shows that eBay failed to create a community effect in China as they did with their other international markets through their…
- 592 Words
- 3 Pages
Good Essays -
Discuss EBay’s possible rationale for expanding internationally. In what ways can they use their established U.S. competitive advantage to gain a foothold in foreign markets?…
- 729 Words
- 3 Pages
Good Essays -
In the world today, there are many companies getting involved in international business, and developing to become a multinational company. Why do these firms want to take the multinational route? One of the dominant frameworks to explain the existence of these multinational companies is the Ownership-Location-Internalisation (OLI) paradigm (Dunning & Lundan 2008).…
- 3458 Words
- 14 Pages
Best Essays -
As we know, eBay’s China expansion strategy can be considered as failure, despite the fact that eBay entered this potentially rewarding market with caution. This cautious strategy was very unusual for eBay, because they used full-forced, head-on,…
- 1642 Words
- 5 Pages
Powerful Essays -
far dominated by the local retailers Gome and Suning. However, in 2008 the group’s net earnings had…
- 8383 Words
- 34 Pages
Powerful Essays -
Ten to 15 years from now, I think China can be eBay 's largest market on a global basis…. We think China has tremendous long-term potential and we want to do everything we can to maintain 1 our No. 1 position. — Meg Whitman, eBay CEO, 2004…
- 8866 Words
- 36 Pages
Good Essays -
Uniqlo has been entered into China market since 2002 and there has nine retail shops in 2005. Unfortunately, she was not successful to run the business since later on two shops was closed. It showed that the low price strategy which she was using is not appropriate for her to growth in China. In view of the results, Uniqlo was finding ways to capture the huge potential in Chinese market. Hence, they’ve been partnered with Taobao.com to start their e-business on the internet afterwards. So we’re going to explore why they’re being so successful by partnering with them, what they could do more to gain the market share and how the situation of their competitors is.…
- 838 Words
- 4 Pages
Powerful Essays -
First I’ll account for our goals entering the Chinese market. Second I’ll speak about some of the difficulties and failures we have experienced. Third I’ll tell you how we, in spite of these problems, have succeeded on the Chinese market and the reasons for the success of our strategy. Finally I’ll point out important cultural differences between the American and the Chinese culture, and discuss the important necessary tools to achieve success in China.…
- 647 Words
- 3 Pages
Good Essays -
In response to this cultural invasion some countries have reacted in different ways and in certain case, the reactions were strong. For instance, despite eBay’s very successful international expansion history it actually failed in overtaking the Chinese market since it did not manage to adapt its globalised strategy to the Chinese customer mindset and did not succeed in making influence its customer consumption experience (Wang, 2013).When eBay decide to enter China in 2004 it signed exclusive advertising rights with major portals Sina, Sohu, and Netease with the intention of blocking advertisements from the Alibaba’s new website “Taobao” which was launched free of charge for individuals buying and selling virtually any consumer goods in and first introduced to the Chinese market in 2003. eBay tried to build its China operation, by spreading its ads on buses, subway platforms, and everywhere else. Whereas, knowing that most small business people in China would rather watch TV than log on to the internet or use social media like most of American people, Taobao secured advertisements on major TV channels. Since its name means “digging for treasure” in Chinese, Taobao drove the…
- 2813 Words
- 12 Pages
Good Essays