eBay first entered the Chinese market in 2002 by acquiring a 33% stake in its local counterpart, EachNet, followed by a full acquisition a year later in 2003. Critically assess eBay.s choice of market entry strategy for China, listing both the advantages and disadvantages of its acquisition strategy.…
With exceeding 3.7 billion, more than a half of the world’s population, and Internet usage in the region rapidly growth at 406 percent, Asia became an attractive and lucrative marketplace for eBay to expand their business. Since 1995, eBay enjoyed strong revenue growth and was a dominant player in online auction industry. With previous experience of extending their business in Europe, North America, Latin America and failure in China and Japan, eBay was once again struggling to compete in the Asian market.…
The joint venture with Tom Online will allow eBay to enter the Chinese rapidly growing market. In 2007, China experienced a technology boom in which more people were using the Internet than ever before. Besides the rocket increase of Internet usage in China, E-Commerce is growing as well. With the power and influence of Tom Online, eBay has a unique opportunity to grab the market share of a billion people in China.…
EBay and Amazon both operate in the used goods and collectibles market however, they operate in completely different ways. EBay and Amazon currently operate in an oligopolistic market, meaning that the e-commerce market shows some, if not all of the characteristics of an oligopoly market. In 1995 Pierre Omidyar stated the aim of eBay was to ‘give the market power back to the consumers, rather than large corporations.’ (R.Salehnejad, 2012) This caused eBay’s decentralized approach to emerge. The high barriers to entry and exit, large sunk costs and a few large dominant firms operating the market, has made it challenging for any potential competition. Therefore, this has meant that eBay and Amazon do in fact hold large market power as consumers have little in the way of substitutes that can compare to the large consumer base that they offer.…
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.…
Why does Ebay have problems in Asian Markets? This is the question to be answered in the first Case assignment of Business 401. In order to answer this question there must be discussion about Global marketing concepts, such as product, place, promotion, and pricing (the 4 p’s), method of entry, and entry decision. Then it is important to apply those concepts to the Asian Market. In the pages that follow I will discuss the marketing decisions of Ebay in their mission to expand into Asian markets. As well as, possible solutions to some of the decisions that didn’t work out so well.…
EBay’s venture with Tom Online will allow eBay to enter the Chinese market through a rapidly growing market. In 2007, China is experiencing a technology boom where more people are using the internet than ever before. Since more people are using the internet in China, this also means that E-Commerce is growing as well. With the power and influence of Tom Online, eBay has a unique opportunity to tap into a market of a billion people.…
The company eBay was found in 1995 and since then they have had much growth and success over the years. They became the dominant player in the online auction house industry through their unique business model. Their business model united buyers and sellers in an online marketplace and attracted 221 million registered users. Their unique business model enabled e-commerce at multiple levels including local, national, and international through an array of websites that they have acquired. eBay acquired several online competitors such as PayPal, Rent.com, Shopping.com and most recently a partnership with Xiu.com, eBay Style. These trading platforms allowed eBay to offer distinct services and target-specific market niches. This allowed them to penetrate new market spaces and attract a range of users. The company also expanded internationally and have been successful in certain markets. eBay was considered a leader in each of its market with the except of Japan and China. eBay’s first attempt into China’s market was through the acquisition of a Chinese online auction company, Eachnet. They integrated their global strategy platform to Eachnet’s Chinese operations, essentially changing how the website originally operated. Since then, the company has lost most of their market share to local competitor Taobao. After several years eBay then decided to partner with Beijing-based Tom Online. This indicated that eBay failed to adapt to local needs and successfully compete with China’s online auction market leader, Taobao. This shows that eBay failed to create a community effect in China as they did with their other international markets through their…
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 a market cap of 36.44 billion. It biggest competitor is Amazon, which they happen to come second to in competition.…
Discuss EBay’s possible rationale for expanding internationally. In what ways can they use their established U.S. competitive advantage to gain a foothold in foreign markets?…
By the year of 2006, eBay’s combined international investments in Latin American, Europe and Asia Pacific has totaled revenues of 2.1 billion, representing 49% of aggregate revenues of the company at the time. Seeing the great potential of the Chinese C2C online auction market which back then comprised of 250 million customers, eBay has launched various attempts majoring the acquisition of EachNet in 2003 and the later joint venture with TOM Online, in order to compete in the gigantic Chinese market with domestic powers like Alibaba and Taobao. We want to take turns to discuss the benefits and drawbacks of each of the two big moves that eBay took in positioning its business position in China.…
Amazon and Ebay are two well-known brands of online shopping sites. They have evolved and grown from small firms to the giants of e-commerce today. In this essay, a comparison would be made between the two firms.…
Maintaining their place has become a recent challenge because eBay is currently facing stiff competition in the online auction market. Some of the competition that eBay is up against are sites such as Yahoo Auctions, Overstock.com, Craigslist, Google and the recent re-surge of Amazon.com. EBay is now facing competition because other sites are now building their sites around some of the cons of the eBay giant. For example, eBay is not a free site. Sellers are charged monthly fees, which in turn can drive up the cost of the items being sold. Sites such as Craigslist are completely free, increasing its popularity everyday based upon the fact that there are no fees to utilize the site, the site is more local selling merchandise to consumers who are near the item, so shipping costs are minimal. This also allows the consumer the option to pick up items much faster. Amazon.com has seen a recent surge in users due to its non auction format that is appealing to many consumers. Amazon.com also has increased their popularity by allowing used items to be sold and independent sellers to have business on their site.…
| * Leading global brand for online auctions the brand name is more and more recognized around the world (brand recognition). EBay is expanding its international presence. Consequence : growth of profit * Ability to attract buyers * Volume of transactions * Selection of goods * Customer service and security * PayPal: PayPal has helped eBay to increase satisfaction among customers thanks to the services it offers. The share of PayPal in eBay’s turnover represents 36 percent. * Acquisitions provide new business strategy opportunities. eBay has bought several firms (Skype, PayPal) in order to increase the number of services it offers to its customers Growth of profit…
eBay first entered the Chinese market in 2002 by acquiring a 33% stake in its local counterpart, EachNet, followed by a full acquisition a year later in 2003. Critically assess eBay.s choice of market entry strategy for China, listing both the advantages and disadvantages of its acquisition strategy.…