eBay first entered the Chinese market in 2002 by acquiring a 33% stake in its local counterpart, EachNet, followed by a full acquisition a year later in 2003. Critically assess eBay.s choice of market entry strategy for China, listing both the advantages and disadvantages of its acquisition strategy.…
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.…
Echo Bay Technologies (Ebay) is currently one of the leading trading companies in the world. It has international presence in most parts of the world including the United States, the United Kingdom, Japan, Korea, Canada and Latin America’s Brazil. It was established in 1996 to facilitate the open market place ideologies, i.e. providing a level ground for its members to compare, discuss and trade information technology items and other commodities. Just like any other organization, the firm intends to continually grow on a global basis. In order to achieve this, the firm has embarked on an intensive global acquisition program. Presently, eBay’s corporate image and the 90 percent market share is attributed to several factors such as adoption Ibazar, a form of online trade and other types of E-businesses like internet based auctions and trade fairs.…
“E Commerce is one of the most important facets of the Internet to have emerged in the recent times. Ecommerce or electronic commerce involves carrying out business over the Internet with the assistance of computers, which are linked to each other forming a network. To be specific, ecommerce would be buying and selling of goods and services and transfer of funds through digital communications” (Benefits of Ecommerce", 2007).…
China Internet Network Information Center, (2008) “CNNIC releases the 22nd statistical report on the internet development in China”, www.cnnic.net.cn…
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.…
EBay’s venture with Tom Online will allow eBay to enter the Chinese market through a rapidly growing market. In 2007, China is experiencing a technology boom where more people are using the internet than ever before. Since more people are using the internet in China, this also means that E-Commerce is growing as well. With the power and influence of Tom Online, eBay has a unique opportunity to tap into a market of a billion people.…
Online auction firms: www.eBay.com, www.overstock.com, www.ubid.com, www.yahoo.com, www.amazon.com, www.CQout.com, www.bidville.com, etc. The large number of firms in this market reflects the intense competition among those sites. Margin profit is decreased to a relatively low level. eBay could still survive because of its scale of economy and good reputation. However, eBay’s growth in 2004 was much smaller than in 2003. Shareholders put much pressure on eBay, and eBay had to readjust its pricing on varied services on the short run in order to satisfy people’s short term expectation. However, he is risking his long term revenue and reputation.…
Assessment of eBay´s choice of market entry strategy for China, listing both the advantages and disadvantages of its acquisition strategy Assessment of the potential benefits and risks of eBay´ s joint venture with Tom Online Assessment of both companies: eBay and Tom Online, decisions on their respective percentage of stake Strategic recommendation on International Commercial Strategy for eBay…
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…
J.Gopalkrishnan* V.K Gupta** Abstract eBay, Inc. is the largest and most popular marketplace on the Internet, allowing members to buy and sell almost anything. Launched in 1995, about 147 million people now use eBay. An estimated 430,000 people in the United States make all or most of their living by selling on eBay. eBay’s online payment service, called PayPal, enables transactions nearly anywhere in the world. eBay proclaims “trust” between buyers and sellers as the key to the success of the marketplace. eBay is the “The world’s Online Marketplace”, which is its positioning statement, and it means many things about the company’s identity. It enables trade on local, national and international basis, with a diverse and passionate community of individuals and small businesses. eBay offers an online platform where millions of items are traded each day. The objective at eBay was to “to develop the work ethic and culture of eBay as a fun, open and trusting environment and to keep the organization focused on the big picture objectives and key priorities. The company market capitalization had surpassed that of even Amazon.com, making it the “world’s most valuable Internet retailer”. Pierre Omidyar, founder, is focused to achieve excellence in strategic management for improving the company’s strategy, sustaining the company’s growth and business performance, and potentially expanding from online auctions into general “etailing”, and to become “the world’s largest online mall”. This research paper intends to study the click and click business model of eBay, whose competitive advantage lies in its pure play strategy, a breakthrough from the traditional brick and mortar model, which leads to sustainable growth and a competitive edge over the other retailers. Keywords: Online marketplace, etailing, work ethics, online auctions/platform/mall Introduction: eBay establishes itself as the “The world’s Online…
eBay first entered the Chinese market in 2002 by acquiring a 33% stake in its local counterpart, EachNet, followed by a full acquisition a year later in 2003. Critically assess eBay.s choice of market entry strategy for China, listing both the advantages and disadvantages of its acquisition strategy.…
On September 3, 1995, Pierre Omidyar founded eBay in San Jose, California. Pierre and his wife, Pamela Wesley, had a vision that included creating a marketplace online where people could share the same interests. This vision also included a format that could create a fair and open meeting ground where prices were determined purely by the market. The site was based on five main values: people are basically good; everyone has something to contribute; an honest, open environment can bring out the best in people; everyone deserves recognition and respect as a unique individual; and you should treat others the way you wanted to be treated.…
One of the problem of not being the first on getting on the online auction business, is that you need to build a credibility in order to have loyal customers and new customers wanting to join in. when yahoo japan got in first in the online auction business, it created a hierarchy this means that people are comfortable using the service and they know that they will be satisfied. By the time eBay entered the market Yahoo had develop a loyal customer base (pg285). They have more of a pressure on trying to make decisions. They do not have Softbank as their venture and they do not have a business plan that culturally won’t be able to fit in Japan, the expectations for a second competitor are much higher than from the first one who started doing that kind of business. So eBay didn’t meet the expectations that…
1.The brand has not established itself in the e-commerce arena that well in Asia where the brand has a significant market share.…