The crucial mistake was that eBay entered the market after Yahoo! Japan, who was the first-mover of online auctions in Japan. Approximately 54% of eBay’s 2010 net revenue comes from international locations, but revenues derived from Asian markets appear to be still much smaller.ĮBay launched in Japan in February 2000 through a joint venture with NEC Corporation, where its first strategic missteps in Asia began. eBay sites also exists in other Asian countries such as Taiwan and Thailand. In Asia, three acquisitions of leading online marketplaces in South Korea, China, and India totaled $1.5 billion. Since 1998 eBay has made 37 significant acquisitions globally, 25 of which amounted to $10.1 billion&. In general, eBay sought global growth through acquisition and joint venture as way to gain quick access to markets and establish a leadership position. To compare and research how to practice in this situation, we pick up the case from eBay and discuss how the strategy adjustments could help eBay come from behind to win.ĮBay has a vision “to be the world’s personal trading community.” Nevertheless, it struggled with early strategic moves in Asia, Japan and China in particular, and needed to reconsider its global strategy. As we all know, the case of Starbucks in Australia and Wal-Mart in Korea, both reveal the insurmountable local market differences and accordingly systematic slow responses could lead many business legends to be negative examples. However, not all great companies could rebound after their failure in some specific areas. There are many characters to distinguish great companies with others, such as innovation ideas, stunning development speed and outstanding leadership.
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