Ebay Case Study
Question 1: How did eBay pursue international growth?
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.
From the beginning, there is no main aim for eBay to have a further plan about acquisition to expand and identify synergies within existing business line. But for taking advantage at the first move to a new market, eBay considered achieving diversification by acquisitions or mergers and joint venture. To compete effectively and create a global trading platform, eBay aimed to increase their market share thought acquisitions and partnerships in related and unrelated businesses in term of sharing tangible and intangible resources, building market power, leveraging core competencies and support activities. In charge of supporting business, PayPal was acquired in 2002. PayPal was considered the global leader in online payments enabled individual to securely send payment quickly and easily online. To meet higher standards, eBay and PayPal upgrade and create innovative services by increasing protection for buyers and sellers to shop with confidence. To minimize pressure of competition, eBay acquired a lot of competition to lead to consolidation and can force other players to merge. For instance, Skype – the world’ fastest-growing online communication was acquired by eBay in 2005; and by 2008, there are more than 405 million registered users. Another example for partnership, in 2006, eBay announced international cooperation with Google – the most successful and popular searching tool all over the world. EBay also
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.
From the beginning, there is no main aim for eBay to have a further plan about acquisition to expand and identify synergies within existing business line. But for taking advantage at the first move to a new market, eBay considered achieving diversification by acquisitions or mergers and joint venture. To compete effectively and create a global trading platform, eBay aimed to increase their market share thought acquisitions and partnerships in related and unrelated businesses in term of sharing tangible and intangible resources, building market power, leveraging core competencies and support activities. In charge of supporting business, PayPal was acquired in 2002. PayPal was considered the global leader in online payments enabled individual to securely send payment quickly and easily online. To meet higher standards, eBay and PayPal upgrade and create innovative services by increasing protection for buyers and sellers to shop with confidence. To minimize pressure of competition, eBay acquired a lot of competition to lead to consolidation and can force other players to merge. For instance, Skype – the world’ fastest-growing online communication was acquired by eBay in 2005; and by 2008, there are more than 405 million registered users. Another example for partnership, in 2006, eBay announced international cooperation with Google – the most successful and popular searching tool all over the world. EBay also