...that have caused eBay to struggle in Japan, China, and other Asian markets to determine if these mistakes could have been avoided. One factor that has made eBay to struggle in Asian countries was its failure to recognize the differences that existed between the Asian markets and market users and the American markets and markets users. This lack of understanding made eBay to use the strategies it had used in the US to enter the Japanese and the American markets. At the initial launch in Japan eBay set out to use collectibles this strategy was successful in the US market. This seemed to have failed as the Japanese user seemed to have preferred new products. The second mistake was eBay strategy to charge commission on each transaction as it did in the US. The Japanese market did not favor this as they were not used to pay commission or monthly charges. The second factor that made eBay to struggle in the Asian markets is its strategy of attempting to dominate the market by crashing all competition including the local. This proved to be a wrong kind of strategy as local competitors had a competitive edge over eBay. This was demonstrated by eBay earlier battle with Alibaba for the control of the Chinese market which eBay ended up losing badly to the local players. Due to the differences in market and business environments in Asia local companies that are used to these environments usually find an edge over foreign entrants and strategies such as that used by eBay have high probabilities...
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...In this case, it mainly defines how eBay enter the Chinese market and state problems why eBay failure problems in China compare to Tao Bao. We will introduce EBay, compare and contrast between eBay and Tao Bao, also, we talk about reasons failure in China. Introduction to EBay EBay which is a management that allows people from all over the world to buy and sell items, auctions and shopping online. EBay was founded on 4th September 1995 and by name Auction web of Pierre Omidyar in California. People can sell goods on EBay over the network. As an online auction site, eBay created a buyer but also the seller of unprecedented business model which was C2C mode. EBay has differences from traditional marketing because e Bay make a large number of small business and individuals through its sales platform to interact with small items, so creating amazing trading volume and profit. Also, its great value and market energy generated is sufficient to counterbalance the traditional business model. As a third party transaction, eBay itself does not directly involved in the transaction, but specifically for consumers with business information and value- added services. Through this e-commerce information intermediary platform, information can flow between the buyer and the seller each other. EBay collected information through selling; charged fees to users store and get huge revenue (Kathy Burns-Millyard, n.d.). Thus, eBay overthrown smaller flea market in the past, though the network, buyers...
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...the buyer and seller market, providing a global new online trading platform, anyone can carry a variety of products traded through this platform. Whether traditional industries and emerging networks must convert a way of thinking, that is, the ability to provide customer value. Competitive forces: The company now sells a staggeringly diverse array of goods and is one of the world’s most easily recognizable and well-known Web sites. eBay is a favorable proposition for smaller sellers to find markets for rare goods, or goods that are otherwise difficult to value. The company reduced posting fees for adding an item online and increased the collection fee for sold items.In August 2008, eBay lowered its listing fees for all sellers offering fixed-priced items under its “Buy It Now” format. EBay adjusted its search ordering system so that highly rated merchants appear first and receive more exposure. Roll out a rating system that made acquiring a high rating a much more time-consuming undertaking, favoring larger sellers with the time and energy to build a favorable rating. eBay’s growth strategy focused on expansion in geography and scope and on continuing innovation to enhance the variety and appeal of products in its sites. 2、Business model:brokerage model:Cyber Age through virtual network platform to bring together buyers and sellers of supply and demand information, coordination of their supply and demand and the payment of transaction costs market intermediaries ...
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...The Challenges Facing eBay in 2008: Abstract EBay in 2008 announced that its long-time president and CEO, Meg Whitman was to retire and pass on her responsibility to a new president and CEO, John Donahue. After the CEO transition, Donahue faced several significant challenges, including much slower growth in eBay's core online auction business, what to do to make the recent acquisition of Skype profitable, declining numbers of auction customers (chiefly due to increasing competition from Amazon's then new and popular auction site), and weaknesses in key economies across the globe. Competitive advantage is important role in developing sustain strategies. Using porter’s five forces, this paper analyses the five factors which affect eBay strategies. These factors are major in helping the company to identify the key issues and ways of coping with complexity and change. To determine how profitable and the position of eBay in the current market, a strategic group map, weighted competitive strength assessment and financial ratios analysis were conducted. The three analyses reveal that the company is still in good standing even though there is immerse competition which results in profit margin declines. Finally this analysis looks into problems that top management of eBay is facing. With acquisition of other companies that support the company’s core business and adjusting the current strategy to encompass the company’s globalization efforts in good time the company...
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...that have caused eBay to struggle in Japan, China, and other Asian markets to determine if these mistakes could have been avoided. One factor that has made eBay to struggle in Asian countries was its failure to recognize the differences that existed between the Asian markets and market users and the American markets and markets users. This lack of understanding made eBay to use the strategies it had used in the US to enter the Japanese and the American markets. At the initial launch in Japan eBay set out to use collectibles this strategy was successful in the US market. This seemed to have failed as the Japanese user seemed to have preferred new products. The second mistake was eBay strategy to charge commission on each transaction as it did in the US. The Japanese market did not favor this as they were not used to pay commission or monthly charges. The second factor that made eBay to struggle in the Asian markets is its strategy of attempting to dominate the market by crashing all competition including the local. This proved to be a wrong kind of strategy as local competitors had a competitive edge over eBay. This was demonstrated by eBay earlier battle with Alibaba for the control of the Chinese market which eBay ended up losing badly to the local players. Due to the differences in market and business environments in Asia local companies that are used to these environments usually find an edge over foreign entrants and strategies such as that used by eBay have high probabilities...
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...Contents Company overview 2 Company mission, vision and goal 2 Organizational Chart 3 Market Analysis 4 Competitor analysis 5 SWOT analysis 6 Service Management (Chapter 9) 8 CHAPTER 4: CUSTOMER RELATIONSHIP MANAGEMENT STRATEGIES FOR BUSINESS MARKETS 14 COMMENTS AND SUGGESTIONS 15 REFERENCES 17 Company overview EBay is the largest online marketplace in the world. EBay was founded by San Jose, California launched in 1995, by Pierre Omidya. It encourage members to establish business through eBay and members can buy products through online also. EBay has an online payment called PayPal, based on the study number of current active user in eBay are 152million，which are fee based user. Each day nearly 1/3 internet users in United States visit eBay，purchase and sell products in eBay marketplace. Because from EBay website offering multi products there. EBay user can save a lot of time to shopping, and sellers can easily promote their products through eBay. Proclaims “trust” between buyers and sellers as the key to the success of the marketplace Company mission, vision and goal The mission of Pierre Omidyar establish EBay with a simple idea which is "People are basically good". At eBay, our mission is to provide a global online marketplace where practically anyone can trade practically anything, enabling economic opportunity around the world. The objective of eBay is have fun, open trusting environment to develop the work ethics and culture ,to keep the organization...
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...I. POINT OF VIEW Through the help of world wide web, ebay has been successful because of creating a new online market place. World wide web also broaden markets to include people and organizations that otherwise would not have known of buying or selling opportunities. Ebay has been moving into areas of service and creating global network. II. MAIN PROBLEM E-bay has become critical to their revenues and profits especially to South Korea, Germany and the United Kingdom. III. SECONDARY PROBLEM * Other online sellers and auction sites provide competition. * Taxes on online sales have been imposed in some countries. IV. OBJECTIVES * To create a product or service that is new to market. * To provide service in the easiest way. * To expand E-bay internationally and globally. V. SWOT ANALYSIS STRENGHTS | WEAKNESSES | * Continued to innovate, providing new sites and services. * E-bay purchased PayPal. * Free service * Technology became a core strength for E-bay. * E-bay offers a wide variety of features that enable members to buy and sell on the site quickly and conveniently. * Top online automobile site. | * International business in Korea, Germany and UK has been critical. * There was so much traffic on the website. * E-bay site went dark for 22 hours resulting in lost fees of $4 million. | OPPORTUNITIES | THREATS | * E-bay changed their strategy in China by entering into a joint venture with a local...
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...Q1. EBAY’s choice of market entry strategy for china Advantages • Reducing risk – Acquiring 33% of the company for 30M$ allows a slow and gradual entrance to the Chinese market. –After assuring success, the value had grown by 2.5 times, with a market share of 85%, they acquired the rest of the company for 150M$. • Established domestic company – EachNet was a significant player in the Chinese online auction market and controlled more than 50% of the market share. EachNet was the Chinese EBAY, with sensitivity to differences between the US and Chinese market. • Using well founded company with hard resources in china – Warehouses, shipping company, contracts with local supplier Etc. This will let Ebay, a smoother entrance to the market. Disadvantages • Trust issues – The Chinese customers hadhard time trusting new foreign companies, changing the brand name to EBAY EachNet emphasis this fact. • Chinese/ US culture difference – The Americans executives had a hard time adjusting to Chinese way of doing things. For example: service that was offered to the customers was a DIY, where the Chinese expected a service hotline. • “be first of nothing”, EBAY’s usual strategy, was not implemented , they didn’t have the experience nor control they were used to. Q2. Potential benefits and risks of the joint venture with TOM online: Benefits • Connections – In china connections to officials are very important for business. TOM’s biggest shareholder was well...
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...sell their own personal items to anyone with internet access at any time. eBay is full of much strength such as their ability to globalize their brand. This is also one of their main weaknesses. Since eBay is an online business, anyone with internet can access the website. While they have the potential to reach out to everyone, not everyone uses the internet. One of the issues eBay faces is that the internet usage in Asia is very low especially considering over half the population resides there. E commerce was growing everywhere which definitely helps eBay’s business. One of eBay’s great accomplishments is their ability to acquire several other successful businesses. They don’t just take over random businesses because they can; they acquire businesses that can help them out with their own business. For example, PayPal goes hand in hand with the type of business eBay runs. It gives users a more secure way to use their website which consumers definitely appreciate. Along with their feedback forum which allows consumers to voice their opinions, the fact that both sides (buys and sellers) feed off one another and cause the popularity of the other side to rise really makes consumers feel like they are a part of the business. This is part of what makes eBay such a great success. Although they have their share of challenges with globalization and competition, they do so many things right. The idea of eBay originated from French born Pierre Omidyar, a computer science graduate from...
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...group assignmen Group 8 eBay- Fine- Tune its Strategy E-commerce assignment group: eBay ABSTRACT 1 EBay is one of the world leading companies, specializing in online retailing market, which has been really famous for its amazing business model and selling strategies at the point of several decades ago. It was once to be deemed as the monopolist in the online auction market business with so many successes. However, as the competition is becoming more and more intense, along with many new effective business strategies coming to the online retailing sector, the companies had committed in some mistakes as well as faced with a number of difficulties. It should and must change in order to keep up with the market speech. This paper is not only to give an overview of eBay’s company but to analyze deeply its current situations, of which providing the 8C’s, 5 forces and other relevant model analysis. In addition, the key reasons for eBay’s changes as well as key factors for its success had been identified. The recommendations for Vietnamese enterprises were also included. High Quality Class No. 2 Business Administration – Group 8 E-commerce assignment group: eBay TABLE OF CONTENT ABSTRACT ------------------------------------------------------------------------------------------------------------ 1 TABLE OF CONTENT ---------------------------------------------------------------------------------------------- 1 I. OVERVIEW OF EBAY-----------------------------...
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...eBay Inc. is an American multinational internet consumer-to-consumer corporation, headquartered in San Jose, California. It was founded in 1995, and became a notable success story of the dot-com bubble; it is now a multi-billion dollar business with operations localized in over thirty countries. The company manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. Case: The Globalization of eBay International Business the Globalization of eBay Case study I. Case Background eBay Inc. is an American multinational internet consumer-to-consumer corporation, headquartered in San Jose, California. It was founded in 1995, and became a notable success story of the dot-com bubble; it is now a multi-billion dollar business with operations localized in over thirty countries. The company manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. (Wikipedia) Operations eBay created an efficient distribution system that demanded virtually little supervision. Sellers paid eBay for the opportunity to design, set up, monitor, and supervise their particular auctions while buyers used eBay's software to search for products and place bids. After the auction clock ran out, the seller contacted the winning bidder to negotiate payment and shipping terms. For this matchmaking service, eBay charges between...
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...HKU701 JIANGYONG LU ZHIGANG TAO EBAY’S STRATEGY IN CHINA: ALLIANCE OR ACQUISITION In December 2006, eBay Inc., a US company that offered e-commerce, e-payments and internet communication services globally, announced its plan to form a joint venture with China-based online portal and wireless operator, TOM Online, in which eBay would have 49% ownership.1 The move reflected the increasing difficulties foreign internet companies were facing in their attempts to snatch a share of the Chinese market amid fierce competition and a changing market environment. eBay first set foot in China in 2002 by acquiring 33% interest in EachNet—a domestic online auction company, followed by a full acquisition in 2003.2,3 In 2005, eBay acquired Skype4 to expand into the online communication sector. While Skype was a wholly owned subsidiary of eBay globally, it operated indirectly in China via a joint venture with TOM Online. Due to this existing relationship between the two companies,5 TOM Online seemed to be a natural choice of partner for eBay’s subsequent decision with regards to its online marketplace business. Recognising TOM Online’s local knowledge and political connections, eBay believed that a joint venture would benefit its failing business in China and help the company further develop its Chinese market.6 Some analysts questioned whether political connections alone were the answer and suggested that eBay focus on its product and service offerings.7 Vara, V. and Chao, L. (20 December...
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...Assess how these segments affect the corporation you chose and the industry in which it operates. EBay Inc. Is one of the leading internet companies in the world. Founded in 1995 by French Iranian Pierre Omidyar, eBay is employing more than 15500 people while generating total revenue of 11.65 billion dollars as of 2011 (eBay Inc 2011 Results). The company was founded in San Jose, California with a vision of connecting people rather then sells them goods. The company has now about a billion registered users and is the most popular shopping site on the Internet. EBay’s mission is to provide a global segment platform where practically anyone can trade practically anything. It features a variety of international sites, specialty sites, 50,000 categories of merchandise, and services that aim to provide users with the necessary tools for efficient online trading in both auction style as well as fixed price formats. Recently eBay added a Want It Now and Best Offer format providing new ways for shoppers to find and buy what they want on the website. Europe, Asia and cross-border trade are major areas of growth for eBay and an immense source of revenue. The firm offers localized sites in 24 countries. On any given day, millions of items are listed on eBay in thousands of categories. People from all over the world buy and sell on eBay (Hellriegel, D., & Slocum). EBay also acquired a number of other companies. These acquisitions include the following: • PayPal. This...
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...information, communication and control systems required in today's business environment. Can eBay Continue Growing? 1. What is eBay’s business model and business strategy? How successful has it been? According to the course textbook there is several internet business models found on page 444. The internet business model that best describes eBay is an “online marketplace”. As it says in the case itself, “eBay is an online auction service…who stores no inventory and ships no products. Instead, it derives its revenue from the movement of information”. This is essentially what an online marketplace does. It provides a digital environment where buyers and sellers can meet. From there, they can exchange products. This is done by displaying and searching for products and then setting the prices at which the transaction will occur. EBay’s business strategy is to generate revenue from the fees and commissions charged to the customers who use the site to exchange products. The commission scale is somewhat complicated, but seems to be successful. The revenue is generated by the people who use the site. However, the interesting part of this business strategy is that none of these people actually work for the company. EBay is very successful. According to the case, the company has been profitable and had attracted more than 200 million users by 2006. It has operations in 32 countries. In 2005, eBay users listed 1.8 billion items in auctions. This caused about $46 billion dollars exchanging...
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...E-bay’s Downfalls with Asian Markets It has been said that E-bay has not been very successful with the Asian markets. Should E-bay have gone on a mission to expand into the Asian markets? There a lot of things to consider when trying to succeed outside of our country. E-bay was not prepared for the Asian market. More research should have been done prior to trying to expand in Asian marketing. When E-bay decided to expand in the Asian market, they did not take everything into consideration. More research should have been done in order for E-bay to know how to gain the attention of the Asian marketers. An example of that would be the fact that even though E-bay’s CEO Meg Whitman had spent time in China, she was not prepared to cater to their needs. The Chinese executives had more experience in dealing with the specific needs of Chinese consumers shopping online. Another problem that E-bay didn’t expect was Internet accessibility and the inability of local networks to connect to their site outside of Asian countries. E-bay may have been alright had they just did more research prior to jumping into the market. Because E-bay was having problems with the Internet accessibilities, Chinese students opted to use local companies instead. E-bay is not the only brand image. There are more brands out there, such as Google. When you are competing with others, you want to try and beat their price just enough that you won’t shoot yourself in the foot. E-bay did...
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