Robert M. Brown Jr.
Module 1 Case Assignment, Why does E-Bay have problems in its Asian Markets?
Course Number: International Business 401
Dr. Fadia Alkhalil
February 15, 2011
Abstract This paper will identify some of the reasons why E-Bay has problems in the Asian Markets as an internet auction provider. After examining articles from Philip Kotler and David Gertner as well as Moon Ihlwan among others, this paper will provide my answers about why did EBay want to expand globally as well as why any of these Asian nations wanted their business? It will explain some research explored about what types of Entry decisions the company used in the Asian Markets. Utilizing the knowledge gained about the history of global business. Answering the question about the problems that EBay has in the Asian market will allow me to discuss and apply concepts of the global market learned in module one in support of my answers. Lastly this correspondence will assess how EBay’s Marketing Mix assessment of the Four P’s assisted them in the global marketing strategy the company adopted for the Asian Markets?
Why did EBay want to expand globally and why did nations wanted their business? The reasons EBay decided to expand globally were various and resulted in an overall loss for the San Diego, CA based company headed by the former CEO at the time and California Gubernatorial candidate, Meg Whitman. Some of the decisions made and acted upon by the company’s leadership were akin to the way Meg Whitman ran her political campaign. Instead of researching the culture and traditions of the places they chose to do business and working on an image of being local or at least embracing local cultures and traditions; they chose to feed issues with money. In Whitman’s case borrow millions of dollars from herself to try to resolve the issue of losing as a candidate. Getting back on subject, the countries that eBay chose to expand globally in, were like all
References: Author Unknown (2010, January). Article previously published May 2008, EBay’s Strategy in Japan Ihlwan, Moon . (2006, June). Gmarket Eclipses eBay in Asia. Business Week, Internet, Seoul Business Bureau Chief Ihlwan, Moon and Rob Hof. (2006, July). Out-eBaying eBay In Korea. Business Week,(3993), 74. Retrieved February 15, 2011, from ABI/INFORM Global ID: 1076220531). Philip Kotler, & David Gertner. (2002). Country as brand, product, and beyond: A place marketing and brand management perspective. Journal of Brand Management, 9(4/5), 249- 261. Retrieved February 15, 2011, from ABI/INFORM Global. (Document ID: 826458081). Mylene Mangalindan. (2006, October 12). China May Be eBay 's Latest Challenge As Local Rivals Eat Into Market Share. Wall Street Journal (Eastern Edition), p. C.1. Retrieved February 15, 2011, from ABI/INFORM Global. (Document ID: 1144136091). Mitchell (2006, July) Comment in regards to, “Gmarket Eclipses eBay in Asia”. Business Week, Internet, Seoul Business Bureau Chief