StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Globalization and Global Strategic Planning: eBay - Admission/Application Essay Example

Cite this document
Summary
eBay: Global Strategic Planning eBay is one of the largest online retail platforms in the whole world. The company has operations in most of the major economies including the United States, European Union, China and India. Horn (2010) says that despite its strong position in the global market, eBay has faced widespread competition in traditional developed markets, forcing it thereby to effect a change in its overall operational and marketing strategy…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.1% of users find it useful
Globalization and Global Strategic Planning: eBay
Read Text Preview

Extract of sample "Globalization and Global Strategic Planning: eBay"

Download file to see previous pages

The rise in the number of businesses that use eBay as a sales platform has resulted primarily from the ease with which products could be promoted through the portal and sold without any hassles (Ungson, 2011). eBay has also partnered with Skype (for better communications between vendors and customers) and PayPal (for secure online payments). However, Ireland (2011) contends that the partnership with Skype has proved detrimental to eBay’s expansion plans due to issues with bandwidth and communication quality in countries like China and India where Internet speeds tend to be less qualitative and of lower bandwidth (Tao, 2009).

eBay has faced major hurdles in its overseas expansions in Asia due to many other issues. The online retail market has very low barriers to entry. Regional players dominated local Asian markets much before eBay set foot due to this reason and had established a niche brand presence. A burgeoning young population with both access and knowledge of Internet implied highly competitive markets that was diverse and had a number of service providers. eBay also faces stiff competition from global rivals like Amazon and Yahoo that are currently in the process of expanding into the Asia-Pacific region.

Although Amazon intends to enter markets like India by 2012, it does not pose a significant competition in comparison to Yahoo!, as most of its sales are associated with brick-and-mortar outlets. In comparison, Yahoo! poses a much broader threat since it offers a wider variety of online sales through dedicated portals like Yahoo! Shopping, Yahoo! Autos, Yahoo! Real Estate etc (Ungson, 2011). Yahoo has especially been successful in its Asian ventures, as it has forged strategic partnerships with major retail sites in the Asian markets.

For instance, the company obtained a 10% share in GMarket – a major online auction site in South Korea (Ireland, 2011). In China, Yahoo! has a collaboration with ‘Taobao’ that controls over four-fifths of the Chinese online retail market. (Ireland, 2011) Such alliances by other rivals have made it difficult for eBay to penetrate these lucrative markets through traditional approaches. While the Internet market in Asia has surged by nearly 450% over the past 6 years, eBay has faced immense challenges to its entry strategy in this geographical sector (Horn, 2010).

In fact, eBay’s approach has not yielded the required results in developed Asian economies like Japan and South Korea. For example, the company was forced to pull out of Japan in 2000 due to negative profits and immense competition with Yahoo! Acquisitions in the Chinese market such as Eachnet have also not proved successful due to issues with efficient management and governance (Horn, 2010). The tie-up was not sufficiently strong to compete with the overwhelming market power of Taobao. Moon (2010) further notes that another main reason for the lack of successful penetration by eBay in the Chinese market was due to the use of foreign managers to run local operations.

Reasons included a lack of understanding of the local culture and market dynamics, which were instrumental in inhibiting the development of a community perception, which is essential for success in such emerging markets. As eBay began to realize the

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Globalization and Global Strategic Planning: eBay Admission/Application Essay”, n.d.)
Globalization and Global Strategic Planning: eBay Admission/Application Essay. Retrieved from https://studentshare.org/business/1431306-globalization-and-global-strategic-planning
(Globalization and Global Strategic Planning: EBay Admission/Application Essay)
Globalization and Global Strategic Planning: EBay Admission/Application Essay. https://studentshare.org/business/1431306-globalization-and-global-strategic-planning.
“Globalization and Global Strategic Planning: EBay Admission/Application Essay”, n.d. https://studentshare.org/business/1431306-globalization-and-global-strategic-planning.
  • Cited: 0 times

CHECK THESE SAMPLES OF Globalization and Global Strategic Planning: eBay

Concept of Virillio and Klein on globalization

After interviewing Paul Virillio, Armitage (2011) observes that Virillio viewed the contemporary global society that persistently vouches for globalization as a catastrophic society.... According to Armitage (2011), Virillio acknowledges the seriousness with which the globalization concept is treated by its enthusiasts as well as scholars, global leaders and concerned citizens.... A misfortune characterized by hypermodern speed flanking the entire global civilization which is a bout to rupture, (Armitage, 2011)....
8 Pages (2000 words) Assignment

Managing in a Global Context: Impact of Globalisation

Their turnover is an indication of the widespread and global business, which they conduct.... This report demonstrates the understanding of the growth and development of globalization and explains the impact of globalization on the food and retail industry.... The group is planning to.... … The report covers four topics relevant to the globalization of the food and retail sector which are the globalization of markets within the industry, Global Joint Ventures, strategic Alliances in Food Retailing Industry and the Ethical and corporate social responsibility issues specific to the industry that are a result of globalization....
18 Pages (4500 words) Essay

Taxing Corporate Income

11 Pages (2750 words) Essay

Globalization, Education, and Cultural Identity

Seen mainly as a means by which countries could improve its competitiveness in the global market for goods and services, nations of the world embarked on an all-out race to adopt the international (read: Western) manner of speaking, dressing, and acquiring a taste for music on the MTV, products sold on ebay, or movie stars on HBO.... This essay globalization, Education, and Cultural Identity explores globalization which ceased to be confined in the economic front....
12 Pages (3000 words) Assignment

Features Management in the Wider Environment

The term globalisation is commonly viewed in economic terms particularly in regards to the predominance of transnational corporations (TNCs) internationally.... Consequently, modern corporations are increasingly being viewed as major drivers of economic growth influencing societal… Future economic development will be the ‘litmus test' by which society assess the worth of transnational corporations including the source and procurement of their merchandise among other considerations (Burns, 2003)....
14 Pages (3500 words) Essay

Strategic Objective of Amazon.com

nbsp;The strongest competitor, however, remains ebay and Amazon needs to extend its product mix further.... In the paper “strategic Objective of Amazon.... nbsp;Shopping online means there are fewer car fumes, fewer carbon emissions and fewer impacts of global warming and pollution hence it is widely in acceptance to the global standards of environmental protection....
11 Pages (2750 words) Essay

Internet Marketing

As such, companies have shown a lot of keenness in modernizing their marketing strategies to match with the new marking… In this case, companies use media such as social media, internet and websites to make their products known to different consumers. ... ... his article seeks to The article will lay emphasis on transactional e-commerce sites on which subscribers use to embed their products as a marketing strategy....
19 Pages (4750 words) Essay

Mercedes-Benz Company and Its Macro Environment Brings

The automotive industry is one of the industries that has been hit hard by the global financial crisis as well as the other economic changes across the globe during the past years.... These changes result in a major decrease in global sales for the whole industry over the years....
16 Pages (4000 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us