Ebay Case Study

2736 Words Apr 8th, 2014 11 Pages
Question 1: How did eBay pursue international growth?
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.
From the beginning, there is no main aim for eBay to have a further plan about acquisition to expand and identify synergies within existing business line. But for taking
…show more content…
Over time, along with the acquisition of PayPal, eBay enhancing guarantee transactions conducted on this network provider. Lowering fees for listing items and raising minimum standards for sellers, as well as discounts to reward sellers with the best buyer satisfaction ratings was considered mortification factors for eBay. This brings about not only profits for eBay transactions through PayPal; the company now occupies the trust and support of all buyers and sellers. Not only that, when eBay came to international expansion, in many of the international Web sites, the company provided local language and currency options to gain popularity and ensure the sense of community feeling. Along with partnership with local company, eBay became better understand local cultures and ensure that the company was meeting specific local needs. All of the above made eBay become successful today. In my opinion, that caused of the right strategic plans, not only financial resource although it played a very important role.
Despite for the most part, eBay was successful in expanding in Europe and Latin America, where it was able to quickly adapt to local needs through its partners, the company could not gain the success in Japan and China. Because of differentiation of culture among countries, managements should not apply all the effective strategies from this
Open Document