Ebay: Expanding Into Asia

EBay has paved the wave in this industry and being in a billion dollar industry making things happen to benefit consumers in many ways.[5]

    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

EBay is an American transnational corporation that utilizes an online interface to transmit its business globally. To become a transnational corporation your business must facilitate its operations in more than one country. EBay hosts an online marketplace where consumers and merchants can trade new and used goods for discounted prices. EBay has made it easier to shop from other countries through the process of deterritorialization. The website is also a good example of globalizing culture; which will be discussed later in the paper. EBay has not only transformed the online marketplace, but has been especially successful doing so. In an interview conducted with Entrepreneur.com, a former Fortune 500 company IT consultant stated that, “EBay became a $10 billion company selling something used cheaper than new,” (Girard, 2011.) This emphasizes how successful this business has become and what the future may hold for EBay as well as companies alike.

Assess the potential benefits and risks of eBay.s joint venture with Tom Online (use Global/Local Matrix)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 (use Key Country Matrix), listing both the advantages

Ebay a company that made its name for buyers to bid on items of interest and for users to browse through a search engine for a broad market of items online world wide. Ebay-Inc., was founded by a 28-year-old software developer in September 1995 by Pierre Omidyar 's San Jose living room. On eBay one can conduct worldwide person-to-person trading, or sales which could be in the a forms of a garage sales, flea markets,

Read the case carefully and answer the following questions: 1.Till 2005, eBay EachNet was the leader in the Chinese e-commerce market, controlling more than half of it. But eBay EachNet soon lost its market leadership position to Taobao.com (Taobao). In this context, analyze the reasons that can be attributed to Taobao’s edge over eBay. 2.a. To enable people to trade with each other, Pierre Omidyar created a marketplace in September 1995 which was later called eBay. By mid 1997, eBay received one million page hits per

It suggests that being on the strong financial position can be the key factor of success. eBay’s financial performance resulted a 2 percentage increase from the prior year. The executive team has been built in order to provide more well-organised ways of operating. It helps to reduce the cumulative costs. As a result, eBay generated strong operating cash flow and ended with cash equivalents and non-equity investments (eBay annual report, 2009).

what
 is
 the
 appropriate
 organizational
 structure
 to
 support
 the
 configuration
 of
 the
 MNC
 (PORTER,
 1986).
 Furthermore,
 a
 company
 has
 to
 determine,
 in
 respect
 to
 its
 industry,
 the
 optimal
 trade
 off
 between
 global
 integration
 &
 local
 responsiveness.
 The
 standardization
 vs.
 localization
 trade
 off
matrix
has
lead
to
4
international
approaches:
International
Exporter,
Global,
Transnational
 and
 Multi‐domestic
 (PRAHALAD
 &
 DOZ,
 1987
 /
 BARTLETT
 &
 GHOSHAL,
 1989).
 Two
 frameworks
can
be
useful
for
companies
in
this
case:
The
OLI
framework
identifies
the
firm’s
 motivation
 for
 becoming
 a
 MNC.
 Furthermore,
 the
 AAA
 framework
 helps
 companies
 decide
 how
to
expand
their
business
abroad.
 Where
–
Should
companies
start
operations
in
large
markets
or
the
familiar
ones?
On
which
 terms
 should
 companies
 based
 judgments
 about
 investing
 in
 foreign
 markets?
 ‐
 The
 CAGE
 framework
 helps
 companies
 in
 evaluating
 the
 proper
 opportunities
 in
 foreign
 markets,
 compared
with
the
respective
costs
and
risks
that
might
occur.
 The
focus
of
this
paper
is
to
understand
and
analyse
the
key
drivers
behind
why
eBay1
has
 experienced
failure
in
China
and
success
in
the
UK.
Our
analysis
will
be
supported
by
a
SWOT
 analysis
and
a
5
Porter’s
forces
analysis,
as
well
as
by
the
frameworks
mentioned
above.

The Alibaba group has thrived in the Chinese e-commerce sector from its inception in 1998. They currently account for over 70% of online shopping in China and delivered annual revenues of $636 million in the 12month period ending June 2009 (case p1-2). Alibaba’s successes are due to multiple factors that have allowed them to create corporate advantage, and thus establish market leadership in China (Case p1). The configuration and coordination of Alibaba’s

Ebay had an unusual start, when a 28 year old programmer named Pierre Omidyar, created a site to sell items online stated, Hsiao, A (n.d.). He posted some broken laser pointers for sale in an auction-style listing. He meant this to be an example for other things to be listed for sale. Then the broken laser pointer sold for over $14.00. He immediately contacted the buyer to make sure that they understood that is was broken. The buyer just happened to be collecting broken laser pointers. Then and there Pierre Omidyar knew he was on to

The market eBay takes place in is primarily the Internet market. Around 1995 the Internet market was just beginning. “there will be more than 500 million users by 2003 and a rapid increase in e- commerce turnover, rising from US$500 billion worldwide in 2001 to more than US$3 trillion in 2004” (Fichter, 2003) EBay was a pioneer in Internet market until competitors such as Amazon and Wal-Mart began to sell products online as well. “Online marketing is now the fastest-growing form of marketing” (Armstrong, 2013). The difference between eBay and its

The company eBay Inc. is an American multinational Internet consumer-to-consumer corporation. Founded in 1995 by Pierre Omidyar in San Jose, California, it is now a multi-billion dollar business with operations localized in over thirty countries including China and India. It’s main enterprise is eBay.com, an online auction and shopping website that allows people and businesses to buy and sell a broad variety of goods and services internationally. Millions of collectibles, décor, appliances, computers, furnishings, equipment, domain names, vehicles, services, intangibles and other miscellaneous items are listed, bought, or sold daily on eBay. Anything can be auctioned on the site as long as it is not illegal and does not violate the eBay’s Prohibited and Restricted Items policy.

After that, Pierre launched eBay in the United States in September 1995. Since then, the company has gone from strength to strength, and now has separate sites in Australia, Canada, the United Kingdom and Germany. EBay Australia was launched in September 1999. Any person can use eBay to buy and sell items in more than 1,600 categories, such as computers, toys, beanie babies, dolls, figures, coins, stamps, books, magazines, music, pottery, glass, photography, electronics, jewellery …etc.” (Ebay 2016)

Alibaba focused on SME’s and became its WTO to help small and medium Enterprises grow. Because the internet was getting well liked by the people of china, Alibaba became known to be the largest online business to business trading platform for the small businesses. Their products and services included electronics, apparel, auto and transportation 's, electronic payment services, logistics operations, etc. 1688.com, was their chinese portal that offered domestic business to business trade internally in China. AliExpress.com, was their transaction based reati website that gave buyers the opportunities to buy small goods at a wholesale prices.. With their operations based in China, although it has grown to be a global organizational platform, it focused on china as their main target.

The fact that eBay does have some successful competition means that its strategic capability has become less unique. There is a hint in their competitor profile that innovation and perhaps adaptability to different cultures as they innovate is not core to eBay and something which has been developed more successfully by others working within their own national culture. Indeed, eBay rules in its own territory of North America and in Europe. The search capability of eBay also means that niche players do not really make sense, whereas the consumer trust that comes from being a big player is worth everything when trading on-line, as is the notion that whatever you want it will be on eBay because of its size. Thus, the so-called network effects of eBay (the bigger the company, the more successful it will be) and its first mover advantage that has led to this level are key to its success.