Capstone Case: EBay's implementation in China

Lucie L.

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Thèmes abordés

Capstone Case, EBay, China, Internet sector

Lecture
Résumé
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Extraits

Résumé du document

The Internet sector has been animated by a lot of investment during 1990's period with the Internet bubble, and a lot of company has invested in start up in trusting in a new profitable sector. Every investor wanted to be the first one to enter the market and to lead competition through business idea. After having growing up during decades, companies as Google, Yahoo, Amazon and EBay tried to expand their business on different market than North America. Many parameters have been misunderstood by many of the dotcoms companies as strategic, operational, technical, and behavioral.

Some of them have entered several markets notably in China by realizing a joint venture in order to realize a strategic alliance. A strategic alliance is a business arrangement in which two or more firms cooperate for their mutual benefit. Firms may combine their efforts for a variety of purposes including, but not limited to, sharing knowledge, expertise, and expenses as well as to gain entry to new markets. By the way EBay has implement step by step very late the Chinese market probably because it was a huge question for the EBay's management. In this case we will analyze how eBay has handled these parameters through the different joint venture that the company realized in China.

Sommaire

Introduction
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 a market entry strategy for China, commenting on both the advantages and disadvantages of its acquisition strategy
Assess the potential benefits and risks of eBay's joint venture with Tom Online
Conclusion

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Extraits

[...] So we can observe that eBay has understood its mistake and let the Chinese company drive the business in order to take a step back. So eBay will have the role of an experienced adviser or a consultant in a market where the competition is stronger and stronger. Moreover via Tom EachNet, eBay will take back 49% of the first one and 100% of the second one in term of revenue. Nevertheless in this case it should logically appear that even if eBay has the inferiority position in term of share holder, it said that the company do not want to experienced the same mistake, we might observe that this is the rules of the strongest prevails. [...]

[...] Capstone Case: EBay's implementation in China . Final Assignment: Case Study Introduction The Internet sector has been animated by a lot of investment during 1990's period with the Internet bubble, and a lot of company has invested in start up in trusting in a new profitable sector. Every investor wanted to be the first one to enter the market and to lead competition through business idea. After having growing up during decades, companies as Google, Yahoo, Amazon and EBay tried to expand their business on different market than North America. [...]

[...] First of all the alliance has formed a Chinese company by putting eBay in back up in order to get a Chinese name company: Tom EachNet which avoid reluctant effect of a foreign brand name. And by the way eBay took a foot back from the violent fight that competitors have been doing on the Chinese online market. EBay had the opportunity to increase its market share on the market thanks to this alliance and it permitted to invest on the MCommerce (Mobile Commerce). Tom Online is an expert in M-Commerce and the company could bring its expertise on this emergent specific market. [...]

[...] Moreover, eBay has faced with structure issue during the alliance with EachNet and could again meet the same management problem. EBay could generate some distortion in its main structure following to the problem that they could meet in China and experience a slowdown of its international expansion. Then it could affect the synergies and its Human Resources politic. If this joint venture cannot achieve the expected return on investment, it could question the investment in China and the following investment in emerging market. Nevertheless Chinese market is today inevitable with the potential this area Question 3 : 3. [...]

[...] Asia Case Research Centre. Hong Kong: University of Hong Kong Capstone Final Exam Case Study Analysis. EBay's Strategy in China: Alliance or Acquisition reactivity and a huge capacity of adaptation to the local culture. The regrets are he because as we said the Internet users have became more and more significant in China. But eBay was right to buy Eachnet which procured authenticity and trust to the customer and all of the actors of the market. Nevertheless without efforts in order to adapt its strategy to a specific market and culture and to keep its trend, eBay and EachNet have plunged. [...]

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