Ebay in China - Case Study

4108 Words17 Pages

E-Bay Strategy In China Alliance or Acquisition? Case Study Strategic Management

Gabriela Šalamonová Barbora Jandová Pierrick Boissel Julien Meunier Alexandre Godet


I. The Input Stage
     CAGE VRIO Analysis CPM matrix EFE matrix IFE matrix

II. The Matching Stage
   BCG matrix SPACE matrix GSM matrix

III. The Decision Stage
  Matrix Analysis QSPM matrix

IV. Questions
    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
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Information system is analyzed as the parity. The reason is lack of a customer service hotline on eBay´s websites. But on the other side they try to meet needs their customer, e.g. facilitate payment system. eBay´s executives do not adopt the management style to Chinese conditions. For the majority of population was the only option to pay by cash, because of non-users of credit cards. Also there are problems with the system of auction, because Chinese people like face to face purchases and they are used to deal the lowest price and in auction- selling format usually the prices went up. These issues caused the evaluation of marketing and customer service as the parity. E-Bay had adopted various expansion strategies, both locally in the US and globally in new international markets. It builds a brand image in the US as an industry leader and tries to expand to other foreign countries. Additional temporary advantage related to the purchase protection because respondents extremely agreed that eBay did the best job in monitoring and protecting its users from purchasing counterfeit items from its site.

Competitive Profile Matrix

In CPM is important to identify eBay ´s major competitors, their strengths & weaknesses in relation to a sample company ´s strategic position. Proposed CPM shows the clear insight to the eBay about its

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