eBay’s Globalization Strategy Essay

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eBay’s Globalization Strategy

eBay was founded by Pierre Omidyar and Jeff Skoll in May 1996. Their headquarters were in San Jose, California in the midst of the dot-com era. The company idea initially began as “Auction Web, which Omidyar launched in September 1995. The idea was to develop an open market place that was available for all members of the community to discuss, compare, and trade computer items as well as collectibles. The idea took off, reaching thousands of registered users in just a few years.
By January 1997, AuctionWeb could not handle the large load of page views – bandwidth. Omidyar solved this problem by writing the code for a new system: ebay (Echo Bay Technologies). In September 1997,
AuctionWeb was
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eBay’s International Expansion

eBay began expanding in 1999 and has ambitiously captured market-share in a variety of international markets. There are several key reasons why eBay has had success. Most probably, the key reason for success was a varied market strategy based upon the country they were entering. Other key reasons include;

- Entry into markets that made good business sense.

- Entry into markets that could generate the necessary revenue to sustain a community.

- Entry into markets that already were internet savy and had largest e-commerce activity

- Entry into markets that had a culture of trading

One other key strategy that eBay used was leveraging and layering.
Once they entered a market and began operations, they looked at the next logical entry market. From a sound business strategy, they continually assessed and strategized their next intelligent steps.
Once they mastered the “language barrier”, which really creates the complexity and cost, they were able to layer yet another successful growth opportunity.

Strategic Issues and Problems

eBay’s senior vice president of international, Matt Bannick, is currently faced with the decision of whether to seek entrance into

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