Why Does eBay Have Problems in Its Asian Markets?

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Assignment: Why does E-Bay have problems in its Asian Markets? EBay's climax in China came with its buying the Chinese online auction company EachNet for $150 million in 2003 shortly after acquiring a majority stake in Internet Auction Co. in Korea for $120 million in 2001 (and then buying the remainder for about $362 million in 2004.). However, EBay is now having problems with their listings in China having been reduced from 300% year-over-year growth in 2005's fourth quarter to 127% year-over-year growth in the third quarter of this year (Mangalindan, 2006).The chief executive of eBay's Chinese unit, Eachnet, resigned in 2006 and eBay planned to sell all or part of its operations to Hutchison Whampoa's media flagship, Tom Group. EBay is largely having such a difficult time in Asia due to the mushrooming of competitors that is slowing the originally giant and energetic company. Its own US auction business, too, is producing less revenue than originally, and the buying experience has become less unique and enticing. This seems to be due to the fact that eBay is entering its mature phase, and it is losing or has lost its original luster and originality. Finally, EBay is also having problems in Asia due to the fact that the company has become so large and global making it more difficult to manage. Mangalindan (2006) thinks that EBay may be having trouble in China due to rivals cutting into eh Asian market. Yahoo and Alibaba.com's TaoBao unit have ousted it with TaoBao
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