eBay: Guidelines on Developing a Local Strategy in an International Market
EBay International 1.
EBay Developing a Local Strategy in an International Market
Deborah Leek-Nunoo
Strategy Management
June 11, 2013
EBay International 2.
Abstract
During a Labor Day weekend in 1995 Pierre Omidyar (engineer) developed what he said was an “experiment”: What would happen if everyone in the world had equal access to a single global marketplace? Pierre’s idea would grow from a basic auction site that sold a broken laser pointer to a collector for $14.83; into a multinational corporation with a Global software strategy that served over 100 million users that in 2010, selling more than $62 billion in goods worldwide on EBay. This expediential growth has propelled EBay to be the world’s largest online market place. EBay started in the United States, which still accounts for a large part of EBay’s profits, but as EBay continues to expand the international market has started to outpace the national market. In 2010 international sales accounted for 51% of eBay profits. EBay’s unprecedented growth in the global market has been an astonishing feat of strategic marketing and branding with its use of joint ventures, licensing, and purchasing of wholly owned subsidiaries to create a recognizable and dominant brand throughout the world.
EBay International 3.
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?
The fact was that British and the Americans were already showing the way by trading collectibles and other items across the Atlantic; and van Swaaij wondered to what extent the idea of a marketplace formed by a community of buyers and sellers could span national borders. Matt Bannick too wondered about these possibilities.
In 1998, EBay was receiving hundreds of listings a day from Canadian residents. The major international markets, however, were turning out to be Germany and the
EBay Developing a Local Strategy in an International Market
Deborah Leek-Nunoo
Strategy Management
June 11, 2013
EBay International 2.
Abstract
During a Labor Day weekend in 1995 Pierre Omidyar (engineer) developed what he said was an “experiment”: What would happen if everyone in the world had equal access to a single global marketplace? Pierre’s idea would grow from a basic auction site that sold a broken laser pointer to a collector for $14.83; into a multinational corporation with a Global software strategy that served over 100 million users that in 2010, selling more than $62 billion in goods worldwide on EBay. This expediential growth has propelled EBay to be the world’s largest online market place. EBay started in the United States, which still accounts for a large part of EBay’s profits, but as EBay continues to expand the international market has started to outpace the national market. In 2010 international sales accounted for 51% of eBay profits. EBay’s unprecedented growth in the global market has been an astonishing feat of strategic marketing and branding with its use of joint ventures, licensing, and purchasing of wholly owned subsidiaries to create a recognizable and dominant brand throughout the world.
EBay International 3.
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?
The fact was that British and the Americans were already showing the way by trading collectibles and other items across the Atlantic; and van Swaaij wondered to what extent the idea of a marketplace formed by a community of buyers and sellers could span national borders. Matt Bannick too wondered about these possibilities.
In 1998, EBay was receiving hundreds of listings a day from Canadian residents. The major international markets, however, were turning out to be Germany and the