Ebay International Case Study Essay

739 Words Jul 17th, 2013 3 Pages
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
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In 1999, EBay ventured into the United Kingdome, Australia, and Germany. Through similar reasoning, in 2000, EBay launched sites in Japan, France, and Canada.
Is France and Japan desirable international arenas for EBay? Use the CAGE framework to support your answer.
Describe some of the alternative vehicles EBay has used to pursue international expansion.
EBay’s success breaking into international markets has been largely reliant on key acquisitions and partnerships in each new market. Along these lines, EBay partnered with Google in August 2006; the arrangement involves Google providing text advertisements on eBay’s international sites. Despite its failure to gain a foothold in Japan (Yahoo! Controls the Japanese online auction market; EBay has
EBay International 4. pressed on with international expansion through acquisitions in the world’s two most populous nations, China and India. (Baazee.com is EBay’s wholly-owned subsidiary in India.) Starting a system from scratch like they done in France and Italy did not provide them with certain technological advantages. Most of the countries they had moved into already had fairly advanced systems.
Should EBay acquire rival iBazar in France? Should they abandon the Japanese market? Discuss the strategic implications for each of these decisions. IBazar is one of the leading internet auction sites in Europe with 2.4 million registered users across

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