Ebay In Asia
EBay in Asia Case Study
Current Situation:
• Japan, China, Korea and other Asian nations comprise approximately 57 percent of the world’s population. Moreover barely 10.7 percent of the Asian community engages in ecommerce. EBay has made a name for itself as an online auction and shopping firm where people and businesses buy and sell goods and services worldwide. For the company that is one of the largest
e-businesses in the world, who pioneered online auctions, and helped make online transactions a routine part of daily life, to neglect the potential profitability that lays in these developing Asian markets would be foolish and commercially fatal.
• EBay is considered the leader in each of its markets except China and Japan, in which they have struggled repeatedly to develop market share. In 2002 EBay was forced to pull out of Japan and currently faces fierce competition in Taiwan and Korea and China.
Problems:
1. Competition– as EBay evolved so did it’s over seas imitators. Now that EBay is going global, imitators have become serious competitors.
EBay was founded in San Jose, California, on September 3, 1995, by French-born Iranian computer programmer Pierre Omidyar as Auction Web. Unfortunately, Gmarket was founded in 2000 by Young Bae Ku as an "Auction Web" & "Shopping Mall" site. In addition to Gmarket, Alibaba, the parent company of Taobao is a Hangzhou-based e-commerce and e-auction company, specializing in global trading. And it was founded in 1999 by Ma Yun, and operates five e-commerce sub-companies which operate different aspects of trading.
EBay also faces fierce competition from other multi-national entities. EBay’s domestic competitors such as Yahoo and Amazon also recognize the explosive potential for Asian e-tailing and are in effect taking the fight overseas. Yahoo has already partnered with both Taobao and Gmarket, together they poses a major competitive...
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