Ebays Failure in China - 6789 Words

International Strategy eBay’s failure in China 1 Table†©of†©contents†© 2†© Introduction........................................................................................................................................... 2†© 3†© Theoretical†©background .................................................................................................................... 3†© 3.1†© The†©SWOT†©Analysis......................................................................................................................................3†© 3.2†© The†©Porter’s†©5†©forces ...................................................................................................................................4†© 3.3†¦show more content†¦what†© is†© the†© appropriate†© organizational†© structure†© to†© support†© the†© configuration†© of†© the†© MNC†© (PORTER,†© 1986).†© Furthermore,†© a†© company†© has†© to†© determine,†© in†© respect†© to†© its†© industry,†© the†© optimal†© trade†© off†© between†© global†© integration†© †© local†© responsiveness.†© The†© standardization†© vs.†© localization†© trade†© offâ₠¬ ©matrix†©has†©lead†©to†©4†©international†©approaches:†©International†©Exporter,†©Global,†©Transnational†© and†© Multi†domestic†© (PRAHALAD†© †© DOZ,†© 1987†© /†© BARTLETT†© †© GHOSHAL,†© 1989).†© Two†© frameworks†©can†©be†©useful†©for†©companies†©in†©this†©case:†©The†©OLI†©framework†©identifies†©the†©firm’s†© motivation†© for†© becoming†© a†© MNC.†© Furthermore,†© the†© AAA†© framework†© helps†© companies†© decide†© how†©to†©expand†©their†©business†©abroad.†© Where†©Ã¢â‚¬â€œÃ¢â‚¬ ©Should†©companies†©start†©operations†©in†©large†©markets†©or†©the†©familiar†©ones?†©On†©which†© terms†© should†© companies†© basedà ¢â‚¬ © judgments†© about†© investing†© in†© foreign†© markets?†© †Ã¢â‚¬ © The†© CAGE†© framework†© helps†© companies†© in†© evaluating†© the†© proper†© opportunities†© in†© foreign†© markets,†© compared†©with†©the†©respective†©costs†©and†©risks†©that†©might†©occur.†© The†©focus†©of†©this†©paper†©is†©to†©understand†©and†©analyse†©the†©key†©drivers†©behind†©why†©eBay1†©has†© experienced†©failure†©in†©China†©and†©success†©in†©the†©UK.†©Our†©analysis†©will†©be†©supported†©by†©a†©SWOT†© analysis†©and†©a†©5†©Porter’s†©forces†©analysis,†©as†©well†©as†©by†©the†©frameworks†©mentioned†©above.†© 1†©EBay†©Inc.,Show MoreRelatedEbays Major Mistakes in the Asian Markets1374 Words   |  6 Pagescareful planning, they would have been able to successfully make the transition to Asian markets. eBay instead debuted in these countries with too much of a swagger and not enough cultural knowledge and sensitivity. One of the biggest reasons for eBays failure in Asia was that the company failed to understand that in  Asia  theres a stigma against buying used goods. In some parts of Asia, even among siblings, people dont even pass down their clothes (Schonfeld, 2005). Even though the need to tradeRead MoreCase Study â€Å"Ebay in China†1652 Words   |  7 Pagesby 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. As we know, eBay’s China expansion strategy can be considered as failure, despite the fact that eBay entered this potentially rewarding market with caution. This cautious strategy was very unusual for eBay, because they used full-forced, head-onRead MoreEbay s Strategy Of China912 Words   |  4 PagesEbay’s Strategy in China Founded in 1995 by Pierre Omidyar, eBay became a very successful U.S. company that provides global e-commerce and e-payments. EBay developed very rapidly due its unique expansion strategies. While during mid – to late 1990s dotcom companies had been facing failure of their crash, EBay managed to survive and by 2006 had 221.6 million registered users (Exhibit 10), 2.4 billion items listed (Exhibit 5), and global net revenues of $4.3 billion (Exhibit 4). In order to describeRead MoreTaobao Case Analysis1551 Words   |  7 PagesHARVARD BUSINESS CASE: ALIBABA’S TAOBAO (A) GROUP 2 – GMBA Question 1: What are the major differences in the web designs of Taobao and eBay in China? Which is preferred to on-line buyers and sellers in China? Why? Taobao sought to distinguish itself from eBay in numerous ways. So Taobao’s web designs were imbued with a strong local culture that reflected a deep understanding of Chinese consumers and an attitude of informality. First of all, the website was designed like a Chinese department storeRead MoreEbay International Case Study Essay739 Words   |  3 Pagesexpediential growth has propelled EBay to be the world’s largest online market place. EBay started in the United States, which still accounts for a large part of EBay’s profits, but as EBay continues to expand the international market has started to outpace the national market. In 2010 international sales accounted for 51% of eBay profits. EBay’s unprecedented growth in the global market has been an astonishing feat of strategic marketing and branding with its use of joint ventures, licensing, and purchasingRead MoreE Commerce Powerhouse Ebay Is Known Internationally As A Leader1476 Words   |  6 PagesPierre Omidyar in 1995 in San Francisco Originally eBay went by the name Auction Web and was launched with the purpose of enabling site users/consumers with the ability to trade unique items with each other. Under eBayâ €™s business model, of the time a seller would place an item on eBay’s site with a minimum bid set for the buyer and the duration specified for auctioning that item. The services were provided by eBay free of charge. The free services however, did not last long as the site quickly gainedRead MoreAnalysis of Ebay China’s Failure and Suggestions to Ebay’s Return Strategy from the Perspective of Cross-Cultural Conflicts7600 Words   |  31 PagesAnalysis of eBay China’s Failure and Suggestions to eBay’s Return Strategy from the Perspective of Cross-cultural Conflicts 1. Introduction Along with the development of global economy, no one is unfamiliar with the word of globalization, and the world is filled with multinational-corporations. In such circumstances, those companies have realized that the necessary way to survive in the global market and maintain the competitive advantages is toRead MoreEssay on Ebay in Asia1188 Words   |  5 Pagesinternet. 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 by giving control of its main China operation to Tom Online. In addition to all that they have done, there are a few additional strategies that eBay could use inRead MoreEbay Problems in Asian Markets2166 Words   |  9 Pagesglobal business. Answering the question about the pr oblems that EBay has in the Asian market will allow me to discuss and apply concepts of the global market learned in module one in support of my answers. Lastly this correspondence will assess how EBay’s Marketing Mix assessment of the Four P’s assisted them in the global marketing strategy the company adopted for the Asian Markets? Why did EBay want to expand globally and why did nations wanted their business? The reasons EBay decided toRead MoreEbay Case Study2736 Words   |  11 Pagesmarketplace 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