In places were eBay struggled to understand the demographics and economic environment they have failed. Inability to connect caused mistrust in the market place making it impossible for eBay to capitalize on their resources and in the end they were unable to replicate their past success.
It was this approach that allowed eBay to succeed with mainly word of mouth marketing. What would happen if everyone in the world had equal access to a single global marketplace?
Even with this large initial investment in China eBay was forced to exit the market place in surrendering to local upstart Alibaba, who had begun to dominate the market. The collusion of this essay is that eBay provides an example of how large corporations marketing approach and also their understanding of a market place and demographics will decide if they fail or succeed.
This simple but effective strategy helped eBay develop tailored regional strategies in these markets and gave their multinational corporation a local feel. Ebay did not fair any better in the rest of Asia and in a short period of time eBay managed to fail in the fastest growing online market in the world, Asia.
When eBay entered international markets and was able to establish this same customer relationship they were successful. David Barboza, Brad Stone. In Asia eBay faced an established competition, which had a very different business model then eBay.
This lack of a local connection caused eBay to make multiple simple mistakes such as charging for listing despite their largest competitor offering this service for free and not allowing instant communication between buyer and sell David Barboza. EBay was then able to use this solid base and its superior capital to effectively buy out its competition.
Internet Companies Often Fail.
Growth in these markets came from a careful development of their customer service, creating an open forum for the community to voice their opinions and be heard. Works Cited Berniker, Mark. Unprecedented growth of eBay in Europe was due in a large part to the fact that unlike in Asia eBay was able to connect with the local populace and develop a solid base with the base eBay marketplace in Europe.
Form K Annual Report.
In Europe eBay also recruited local talent and acquired local infrastructure allowing it dominant the European marketplace.
This is something that applies to all organizations throughout the world. San Jose, December. Instead eBay brought in upper management from the outside and did not invest in local infrastructure basing its servers outside the country David Barboza. Who Needs Desperate Housewives.
EBay a Case Study:May 30, · Pierre’s idea would grow from a basic auction site, that sold a broken laser pointer to a collector for $; into to a multinational corporation with a Global strategy that served over million users that inselling more than $62 billion in goods worldwide on eBay (eBay Inc.).
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As eBay keep on expanding internationally they should also look for additional acquisitions or partnerships of other online auction sites eBay should expand community services as a way to educate their loyal and prospective customers in selling their products online with the use of internet.
INTRODUCTION• eBay Inc. is an American internet consumer to consumer corporation• An online auction and shopping website• Founded in • Pierre Omidyar, the founder of eBay• Headquarter San Jose, California, U.S• Today, the eBay community includes more than a hundred million registered members from around the world.
InEBay’s first step in China is acquiring 33% interest in EachNet by investing $30 million IneBay fully acquired EachNet for $ million. IneBay acquired Skype to expand into the online communication market. HKU JIANGYONG LU ZHIGANG TAO EBAY’S STRATEGY IN CHINA: ALLIANCE OR ACQUISITION In DecembereBay 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 .Download