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
Chinese market has become mature for Alibaba, hence the reason to explore outside China. Alibaba has been turned into a global organization but still holding China as it’s major focus. Almost 75% of China’s ecommerce market is dominated by Alibaba. China has 560 million internet users twice as many as the U.S. who spend an average of 20 hours a week online.
Evaluate the amount of goodwill or other intangible assets derived from the transaction and explain whether or not you support that this value was created as a result of the business combination.
The changes that have occurred in eBay's organizational structure resulted in the current matrix structure. This is because the activities of the Company are aligned along more than one line of authority that is also applying the divisional and functional chains of command. As it is explained in the case study, each of the three divisional units has a president and its functional areas. This kind of structure
The company I will talk about for this paper is eBay. eBay is the world 's online marketplace; a place for buyers and sellers to come together and trade almost anything. With more than 97 million active users globally, eBay is the world 's largest online marketplace, where practically anyone can buy and sell practically anything. Founded in 1995, eBay connects a diverse and passionate community of individual buyers and sellers, as well as small businesses. Their collective impact on ecommerce is staggering: In 2010, the total value of goods sold on eBay was $62 billion -- more than $2,000 every second. I have been interested in eBay since I got first debit card and was able to shop online. eBay’s stock is currently valued at $28.23. It has
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 purpose of this financial analysis is to evaluate eBay to determine its suitability for investment of $25 million dollars. I will examine whether or not the company is stable, solvent, liquid, or profitable enough to be invested in. It will examine the business, accounting and financial positioning of the company. Following eBay 's industry examination, a recommendation on eBay 's stock will be provided along with a decision.
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
China has the world’s largest online populations with 130 million residential broadband accounts. E-tailing produced more than $180 billion in sales in 2012. The e-tailing industry in China has registered 120% compound growth rate since 2003. At the heart of this e-tailing revolution lies the Alibaba group, which is slated to go public in the United States as early as next month.
the first mover advantage, and its has one resource in particular that cannot be replaced: a large and loyal community. SWOT Analysis of eBay is carried out to get onto the finer and intricate details that eBay has adopted in such a shorter span of time to achieve profits in millions and is able to maintain a customer base that is again unbelievable. The strengths of eBay could be identified
As Tencent announced to take 15% stake of JD.com, which is the largest online retailer of China, in March 2014, it also implicated the failure of Tencent’s previous e-commerce strategy. In the
There are many factors that lead Alibaba to sustaining its leadership position in the Chinese e-commerce markets, some of the factors explained in the case are: