eBay market entry challenges in Asia Assignment Help Failure of eBay in Asian Market

eBay is an online auction and shopping online site, where people are able to learn and order variety of products and services from the whole world (Ebay, 2012). As per eBay case study assignment help experts, This company has not been able to enter into the Asian markets as whenever it makes attempts to enter into Asian markets. However, Company dominates in US and European market but its decision didn’t work out so well in Asian market. First, it started its operations in Japanese market, where it failed and quickly shifted focus on other upcoming Asian markets like China (Chan, 2007).

 

In early 2002, e-Bay entered into the Asian markets, where it also followed auction model to drive away the customers.  In reality, this method is not suitable for the company to appeal the customers in this market because buyers have to wait until all bids are completed. In comparison of this, its competitor Gmarket offers goods at fixed prices and buyers are allowed to deal instantly (Ihlwan, 2006). In earlier phase, its services were not available on mobile phones that are more useable media for Asian customers. The biggest challenge for the company was cultural difference. eBay was an outsider and did not understand the cultural market and culture difference between Asian and European market. In 2003, it entered in Chinese market through acquisition with EachNet. It used open transaction method but this strategy became proved failure because Chinese customers like to make transactions personal. In addition, Chinese customers believe that closed transaction help to build trust between seller and customer.  Chinese companies are performing well because they understand the market conditions better and the power of Guanxi. Guanxi is a central concept in Chinese society that describes personalized networks of influence in global business matters.  E-bay did not know how to use Guanxi by influencing the correct officials to get advantage.

Apart from this, EBay failed in China because Chinese are more likely to pay for internet services, if they feel that these services satisfy them. The level of internet connectivity, ecommerce technical support, online payment systems and technology infrastructure are necessary to establish a retail ecommerce environment in any market.  Company faced more competition from Yahoo and German media company Bertelsmann in market of Japan and China respectively. In addition, Amazon has established its market in china. After acquisition with Chinese online auction company EachNet, company wanted to promote e-mail and other options for transaction, so, it closed calling facility for customers. e-Bay has problems in its Asian markets due to timing, entry method, product, promotion and price. In 2002, EBay aggressively entered in Asian markets in the early years of the decade than its rival Yahoo in exploiting the lucrative Japanese online-auction market. This early entry into the market allowed eBay to be the first of its competitors and helped eBay’s Korean subsidiary, Internet Auction to become the dominant player in South Korea (Ihlwan & Hof, 2006).

 

It was very difficult for the company to get a foothold in these markets due to new startup companies like Gmarket and Alibaba.com’s TaoBao unit owned by Yahoo that were offering new products and services to the consumers. Alibaba.com succeeded because it offered printed catalogues and other tools to help buyers and sellers find one another. New companies understand Chinese culture and business practices well. E-bay entered through an alliance with Tom Online in Chinese market but there were some conflicts between local management and headquarters. Its joint venture with Tom Online was not well grounded. This company failed because it extensively applied its American alliance models in Asian markets. According to case study assignment help experts, In terms of prices, eBay failed in Asian market as unlike its competitors like Taobao, which offered free basis services. The facilities provided by the company were more costly than its competitor Amazon (Mangalindan, 2006). It was also difficult to list products on this site that made customers feel unhappy. Company is not able to enter in the market of Indonesia and Vietnam because of online payment restrictions in those countries.

 

In Malaysia, its site offers limited variety. In this respect, eBay has failed in South Korea after failing in China and Japan. In conclusion, it can be stated that eBay is failing in Asian markets because it extensively utilize marketing mix strategies used in USA market rather than researching first on how Asian markets operates (Mangalindan, 2006).   References Chan, I. (2007). EBay Has Its Eye on Southeast Asia. Business Week. Retrieved from: http://www.businessweek.com/globalbiz/content/oct2007/gb20071029_295570.htm Ebay (2012). Retrieved from http://www.ebayinc.com/ Ihlwan, M. & Hof, R. (2006). Out-eBaying eBay in Korea. Business Week: New York, (3993), 74.  Retrieved from library portal via course net. Ihlwan, M. (2006). Gmarket eclipses eBay in Asia. Business Week. Retrievedfrom: http://www.businessweek.com/globalbiz/content/jun2006/gb20060628_910393.htm?chan=search Mangalindan, M. (2006). China May Be eBay’s Latest Challenge as Local Rivals Eat Into Market Share. Wall Street Journal, New York. Retrieved from library portal via course net. Assignmenthelpexperts.com is the place where students can get business assignment writing help services from qualified and experienced assignment writers of US, UK and Australia. Students who need any topic case study assignment help can touch with our 24X7 live support system or can send e-mail at info@www.assignmenthelpexperts.com