Case38 – eBay
1) EBay pursue international growth through acquisitions and partnership in related and unrelated business. eBay goal was to expand its international presence in an effort to create an on line global marketplace. In many of this international website, eBay had to adapt and provide local language and currency options to gain popularity. The best approach that eBay had was by forming partnership with local companies. This strategy helps them to understand local cultures and ensure that the company was meeting local need. eBay has had tremendous success in Latin America and Europe. But in Asia has been a failure, in Japan they had to pull out of the market due to the poor market share that they were able to get. In china they still struggling to gain market share so they decided to due joint venture to learn a little bit more about the local needs. 2) eBay biggest competitive advantage was said by the founder of the company “ we have specialize in e-commerce, payments and voice communication. Google stands for search, Yahoo largely stands for content” this clearly defines the completive advantage of specializing at what they do the best. In order to support this eBay has done a lot of acquisition, this offered distinct services and target specific market niches, which allowed eBay to broaden its customer base. When it comes eBay in Asia , the company run into a lot of trouble due to an inability to build a community effect in the country that focuses in customer service. But this was difficult for Ebay because changes at global level had to be approving in United States. This made it more difficult for rapid changes in the local market.
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