eBay in Asia
Kristen Brodosi
Dr. Hiatt
International Marketing
March 12, 2013
Abstract The company eBay began in the living room of Pierre Omidyar in 1995. The company was simply created to connect individuals for the exchanging of goods and services. As a computer programmer, Pierre designed what people referred to as an auction web, connecting millions of people globally through the use of the internet. The growth of eBay was quick and continuous, and today is a biggest global internet business. However, with all of eBay’s success, the company has struggled in Japan, China, and other Asian markets. Yahoo and eBay have both similar and different strategies they use to approach the Asian market. China made a significant move
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The company struggled in this country for several years as well before pulling out as well. The company had several reasons to attribute to their struggles in China. One big reason for their ultimate failure, was that the company did not recognize how different the Chinese market and their business environment are from the United States. The business manager of eBay that led the Chinese operation could not even speak or understand the language. The company should’ve been way better prepared to communicate and market to the Chinese. Their lack of understanding the locals made the company’s advertising efforts were all wrong. The company focused more on the internet and less on the Chinese preference. Since eBay chose not to conform their products and services to the likes of the local market, the Chinese tastes and preference wasn’t satisfied. All of these together made success in China highly unlikely. http://cdan1984.wordpress.com/2012/01/25/why-ebay-failed-in-china/ The company eBay struggled in Asia similarly to how it did in China. They failed to recognize the Asian market, and how different they are from the United States. The company did company also charged commission on each transaction as they do in the United States. This was a big mistake because the Asian culture is frugal, and they find these types of purchases unnecessary. At the time of first entering the country, Asian shopping tendencies did not include
Information system is analyzed as the parity. The reason is lack of a customer service hotline on eBay´s websites. But on the other side they try to meet needs their customer, e.g. facilitate payment system. eBay´s executives do not adopt the management style to Chinese conditions. For the majority of population was the only option to pay by cash, because of non-users of credit cards. Also there are problems with the system of auction, because Chinese people like face to face purchases and they are used to deal the lowest price and in auction- selling format usually the prices went up. These issues caused the evaluation of marketing and customer service as the parity. E-Bay had adopted various expansion strategies, both locally in the US and globally in new international markets. It builds a brand image in the US as an industry leader and tries to expand to other foreign countries. Additional temporary advantage related to the purchase protection because respondents extremely agreed that eBay did the best job in monitoring and protecting its users from purchasing counterfeit items from its site.
EBay is an American transnational corporation that utilizes an online interface to transmit its business globally. To become a transnational corporation your business must facilitate its operations in more than one country. EBay hosts an online marketplace where consumers and merchants can trade new and used goods for discounted prices. EBay has made it easier to shop from other countries through the process of deterritorialization. The website is also a good example of globalizing culture; which will be discussed later in the paper. EBay has not only transformed the online marketplace, but has been especially successful doing so. In an interview conducted with Entrepreneur.com, a former Fortune 500 company IT consultant stated that, “EBay became a $10 billion company selling something used cheaper than new,” (Girard, 2011.) This emphasizes how successful this business has become and what the future may hold for EBay as well as companies alike.
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 (use Key Country Matrix), listing both the advantages and disadvantages of its acquisition strategy (use Drivers (YIP) -CAGE Matrix). 30%
Read the case carefully and answer the following questions: 1.Till 2005, eBay EachNet was the leader in the Chinese e-commerce market, controlling more than half of it. But eBay EachNet soon lost its market leadership position to Taobao.com (Taobao). In this context, analyze the reasons that can be attributed to Taobao’s edge over eBay. 2.a. To enable people to trade with each other, Pierre Omidyar created a marketplace in September 1995 which was later called eBay. By mid 1997, eBay received one million page hits per
This shows an unexpected approach in comparison to different US retailers that utilize E-Commerce passages in China to start their development of the organization (Bailey,
In the beginning of October 2014, top 500 retailer, Costco announced they would be entering the market in China. Although it sounds simple, the Chinese market is a complex market in which to expand a business. If not done correctly, Costco can fail in this area as a few of its competitors have. This may be a result of the economic problems that are being faced China or the lack of research companies have done on the labor climate in China. Another reason may have to do with the restrictions for foreign investors. Although there are many risks associated with entering the Chinese market, there are also many opportunities for foreign companies. This is why Costco has chosen to enter China with the help of Alibaba.
The Alibaba group has thrived in the Chinese e-commerce sector from its inception in 1998. They currently account for over 70% of online shopping in China and delivered annual revenues of $636 million in the 12month period ending June 2009 (case p1-2). Alibaba’s successes are due to multiple factors that have allowed them to create corporate advantage, and thus establish market leadership in China (Case p1). The configuration and coordination of Alibaba’s
In this report I will examine the case “Alibaba: Competing in China and Beyond.” Alibaba under the leadership of Jack Ma, its founder has transformed into one of the most successful e-commerce companies in China. In the 2000s Alibaba had emerged as the largest e-commerce company in China. The company tailored its strategies to meet the needs of the customers and made a mark because of its understanding of the Chinese language and culture. However, some
Alibaba Group Company Limited in June 28, 1999 was incorporated in the Cayman Islands. Alibaba as a tripartite platform operators, not directly involved in sales, not to compete with the business, and no inventory. Alibaba provides basic technical infrastructure and marketing reach to help businesses take advantage of the power of the Internet to establish online business in the middle of consumers and businesses, e-commerce. Alibaba is China development of online market (including consumer protection plan, market rules, businesses eligibility criteria and rating system for buyers and sellers) leader
Alibaba is one of the biggest e-commerce companies in China that is founded by Jack Ma in 1999. Alibaba has changed the way of international business model, which is innovated and specialized by information technology. In this essay, it will be discussed that why was Alibaba a game changer, what were the conditions at that time that made it possible for succeed and why has it had a lasting impact by demonstrating the how the revolution of e-commerce industry in China conducted by Alibaba.
Taobao.com can take advantage of the awareness people have of this type of business, people already know how this works, and they don’t need to educate the consumer. Ebay as a pioneer has already showed the way on how to do this kind of business; Taobao.com can improve or cover what Ebay hasn’t been able to cover. They can also innovate or transform the business.
The market eBay takes place in is primarily the Internet market. Around 1995 the Internet market was just beginning. “there will be more than 500 million users by 2003 and a rapid increase in e- commerce turnover, rising from US$500 billion worldwide in 2001 to more than US$3 trillion in 2004” (Fichter, 2003) EBay was a pioneer in Internet market until competitors such as Amazon and Wal-Mart began to sell products online as well. “Online marketing is now the fastest-growing form of marketing” (Armstrong, 2013). The difference between eBay and its
The company eBay Inc. is an American multinational Internet consumer-to-consumer corporation. Founded in 1995 by Pierre Omidyar in San Jose, California, it is now a multi-billion dollar business with operations localized in over thirty countries including China and India. It’s main enterprise is eBay.com, an online auction and shopping website that allows people and businesses to buy and sell a broad variety of goods and services internationally. Millions of collectibles, décor, appliances, computers, furnishings, equipment, domain names, vehicles, services, intangibles and other miscellaneous items are listed, bought, or sold daily on eBay. Anything can be auctioned on the site as long as it is not illegal and does not violate the eBay’s Prohibited and Restricted Items policy.
The re-expansion of eBay into China seems to be a viable probability and a part of the companies plan for the near future. In 2002, eBay established a presence in china with the acquisition of leading auction site Eachnet to form eBay Eachnet. Up until 2005 eBay Eachnet was the leader of the ecommerce market due to their C2C platform. However, with the emergence of Alibaba owned subsidiary Taobao.com (Taobao), eBay Eachnet soon lost its stronghold on the market. This factor combined with a rigid Chinese ecommerce market drove eBay to withdraw business dealings in the country in 2006.
Then, companies like Ebay and Amazon grabbed hold of the market and set new standards for online shopping, making customers safe and in control. Before Ebay was launched in 1995, shopping online was unpopular but a few months after launch, consumers and businesses alike started feeling more comfortable with the idea of buying and selling products. Ebay, is a prime example of how e-commerce has helped the spread of globalization. Before the dawn of internet shopping, getting products internationally were impossible unless a local distributor had a direct relationship with an international vendor. Today, I have the power to order naan or chapatti mix from India and receive it in two days