Essay on Ebay in Asia

Decent Essays

eBay in Asia
Kristen Brodosi
Dr. Hiatt
International Marketing
March 12, 2013

Abstract The company eBay began in the living room of Pierre Omidyar in 1995. The company was simply created to connect individuals for the exchanging of goods and services. As a computer programmer, Pierre designed what people referred to as an auction web, connecting millions of people globally through the use of the internet. The growth of eBay was quick and continuous, and today is a biggest global internet business. However, with all of eBay’s success, the company has struggled in Japan, China, and other Asian markets. Yahoo and eBay have both similar and different strategies they use to approach the Asian market. China made a significant move …show more content…

The company struggled in this country for several years as well before pulling out as well. The company had several reasons to attribute to their struggles in China. One big reason for their ultimate failure, was that the company did not recognize how different the Chinese market and their business environment are from the United States. The business manager of eBay that led the Chinese operation could not even speak or understand the language. The company should’ve been way better prepared to communicate and market to the Chinese. Their lack of understanding the locals made the company’s advertising efforts were all wrong. The company focused more on the internet and less on the Chinese preference. Since eBay chose not to conform their products and services to the likes of the local market, the Chinese tastes and preference wasn’t satisfied. All of these together made success in China highly unlikely. The company eBay struggled in Asia similarly to how it did in China. They failed to recognize the Asian market, and how different they are from the United States. The company did company also charged commission on each transaction as they do in the United States. This was a big mistake because the Asian culture is frugal, and they find these types of purchases unnecessary. At the time of first entering the country, Asian shopping tendencies did not include

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