The E-commerce is a new industry in the 21st century. In the past 10 years more and more individual person or business companies focus on it, We can find a lot of outstanding E-commerce brands today, Such as eBay, Amazon, Alibaba.
Because the developing of Safety and Trust system, Payment online systems, Convenient Contact systems and the rapid development internet population, More and more people have brought or will buy some products on the internet for a cheaper price and comfortable services. This is the reason of why I consider this topic in my thesis.
EBay, a world leading company on the E-commerce market. They have really strong power of competition in the E-commerce market in the world even there have a lot of competitors like Amazon, Alibaba. In 2002 they entered Chinese E-commerce market and they have been acquiring one of the top E-commerce brand: Eachnet in China. But the benefit from Chinese market is not as well as their plan even they spend a lot of money and never stop investing in the Chinese market. After 4 years they sell the on-line business to Tom goup in 2006.
So before we talk about the reasons of eBay failed in Chinese market, we should think about how E-commerce creates value. In 2001 one theory created by Raphael Amit and Christoph Zott that E-commerce creates value from 4 points: Novelty, Lock-in, Efficiency, Complementarities. There has another theory created by G. T. Lumpkin and Gregory Dess, They thought the E-commerce was creates value by Search, Product Reviews and Reports, Problem-solving, transaction. In my thesis I focus on the why eBay company which have such strong ability to create value but they have to face many problems in Chinese E-commerce market and they lose in this market.
In my thesis I will discusses and analysis the reasons of eBay failed in China because the wrong market strategies and the market strategies of the Taobao which actually become the most powerful E-commerce brand in China.