So in this paper we will see a presentation of E-Bay and the Chinese market. It makes the process go more smoothly as I build up relationships with the sellers. Why not launching E-Bay in the mobile world? Lasts graphics exhibit 14 and 15 page 31 and 32 of the Capstone Case show that Chinese people have more and more access to internet and to become more and more interested in the e-commerce applications.
To sum up, this first strategy of E-Bay in China was a failure. But the problem is the Chinese market is affected by a slow internet speed, a high internet access cost, an imbalanced economic and technological development in some regions, an absence of reliance in credit system for online payments, corruption, currency problems and a miss of legal transparency in making business online.
E-Bay is doing is business by charging fees to the seller when they integrate the product at sale, optional fees are also practiced for making goods more visible and in addition, E-Bay takes as well percentage on the sale. This joint venture would open a whole new market segment for both — E-Bay and also TOM Online, allowing them to fulfil and widen significantly together.
Also a last risk could be the target of E-Bay and Tom Online. Risks Risks on this joint venture exist for E-Bay. That why today E-Bay is not considered as a confident brand for the Chinese consumers and this is the key of its market share lost.
The fact that Chinese consumers felt that E-Bay EachNet had not made much effort in building trust both towards the company itself and between buyers and sellers further exacerbated the problem. Also develop PayPal in China will resolve the problem of credit card payment few of Chinese have one.
Tom Online has a strong knowledge of the Chinese market which is that E-Bay is looking for in order to gain market share and notoriety on the Chinese market. Even if E-Bay try to be careful, this cautious strategy was very unusual for E-Bay.
Introduction E-Bay was the first company that made possible to sell products on the internet. Also there is a financial risk.
As we said before, China is a difficult market to tackle and launch a sustainable company on this market is a hard work.
In this graphic we can see the volume in billion of Consumer to Consumer transaction. The acquisition of a respectable and well establishes brand seems to be the good opportunity to expand E-Bay business in Asia.
While acquisition of EachNet meant many advantages for E-Bay, it also implied serious disadvantages. E-Bay prefers having two well known local brands Tom and EachNet.
The start-up succeeds on it by adapting the business model of E-bay to the Chinese customers such as payments systems, demographics and customer behaviours. Tom Online is a local partner which brings to E-Bay its knowledge of the market, its notoriety and customers.
Press enter to begin your search Ebay. But the most interesting is the following: Even if internet is used by a small part of the population 4. The good thing for E-Bay is that Tom Online is a successful company with a good reputation on the Chinese market.
China know a lot of local competitor on the market as taobao. E-Bay had some difficulties to launch its business due to the cultural differences and moral values.
The main problem will be partners.
Normally local partners will be well establish and with good relation with government, but also you have to bring something to the country knowledge, currency… if you want to be accept. The Chinese opportunity China represents an attractive place to make business, with an ongoing economic growth, a gradual integration to the global trading community, an increasing place let to internet and mostly an enormous population.
Tom Online known also a business expansion and cooperation with Skype, and today they also know a decrease in revenues so joint venture also was an opportunity for them.
In fact Chinese consumers mostly like well know Chinese brands even in the Internet. E-Bay has to adapt it payment system into the culture and the Chinese law.
Then we will focus on the main problem with EachNet acquisition in order to enter on the market. In fact we can notice the increase of such services.
The company is developing itself to global market thanks a strategy including acquisitions, alliances and joint-ventures with local partners. Also E-Bay becomes an international brand; the company is managed by people with competencies in different part of business as marketing, finance or technology as well but also thanks to a simple and accurate business model where the company takes fees and commissions on transactions done on its platform.
For this reasons,E-Bay introduced the Chinese market by taking interests in a local online auctions company called EachNet and by fully entered on it in Tom Online is a well know company in China, leader in sphere of mobile value-added services, and its internet portal, www.Ebay’s strategy in China: Alliance or Acquisition?
In 's, many companies invested in the internet, the dotcom companies, because they thought it will generate a lot of profits quickly and will help in expanding their businesses.
Ebay.S Strategy in China: Alliance or Acquisition. 0. 0.
Table of contents Introduction3 E-Bay Company4 The Chinese opportunity6 The main problem8 Tom EachNet11 Benefits11 Risks12 Critics12 Conclusion14 References15? Introduction E-Bay was the first company that made possible to sell products on the internet.
Need essay sample on Ebay.
eBay first set foot in China in by acquiring 33% interest in EachNet—a domestic online auction company, followed by a full acquisition in ,3 IneBay acquired Skype4 to expand into the online communication sector.
Ebay’s Strategy in China: Alliance or Acquisition Essay In December eBay Inc. a US company that offered e-commerce. e-payments and cyberspace communicating services globally.
announced its program to organize a joint venture with China-based on-line portal and radio operator. eBays Strategy in China: Alliance or Acquisition Case Solution,eBays Strategy in China: Alliance or Acquisition Case Analysis, eBays Strategy in China: Alliance or Acquisition Case Study Solution, In DecembereBay, Inc, an American company that offers e-commerce, e-payments and Internet communications services around the.
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.Download