• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

eBay Globalization Strategy

Extracts from this document...


EBay's Globalization Strategy Introduction to eBay Company eBay was founded by Pierre Omidyar and Jeff Skoll in May 1996. Their headquarters were in San Jose, California in the midst of the dot-com era. The company idea initially began as "Auction Web, which Omidyar launched in September 1995. The idea was to develop an open market place that was available for all members of the community to discuss, compare, and trade computer items as well as collectibles. The idea took off, reaching thousands of registered users in just a few years. By January 1997, AuctionWeb could not handle the large load of page views - bandwidth. Omidyar solved this problem by writing the code for a new system: ebay (Echo Bay Technologies). In September 1997, AuctionWeb was shut down and the eBay platform was opened. The ebay company vision: "To create the world's largest global trading community and to help people trade practically anything on earth." eBay had 2.4 M visitors in 8/98, quadrupling in size to 8.4 M visitors in 4/01. Listings on their site began at 500 in 1998 and grew to just under 5 M in 2001. What started out as an auction site for computer and collectible items matured to include toys, pottery, automobiles, furniture, to movies, etc. ...read more.


Below is a list of possible scenarios: "Options for Latin America"3 (ALTERNATIVES) 1. Organic growth of iBazar Brazilian operation into Latin America 2. Growth through Acquisition of a competitor 3. Get rid of the iBazar Brazilian operation completely (increase cash flow) 4. Sell it for equity in a competitor for future acquisition 5. Shut it down!!! As you can see there are five possible ways eBay can address the problem of whether the timing is right to pursue growth in the Latin America market at this time and how to go about it. The first assumes that eBay will retain iBazar's Brazilian operation and organically growing the business using the "Greenfield"4 entry mode. Since iBazar is not a dominant player in the Latin America market eBay would be hard pressed to use this growth strategy and face the following challenges: such as developing new content in a new language, technical support, management and bandwidth, meeting the needs of the Latin America consumers, and legislative and regulatory restrictions. Another thing that eBay will have to consider is whether pursuing this strategy will generate revenue sufficient to sustain operations and justify presence. Furthermore, Latin America was likely not a region that would show sizable profitability any time soon. ...read more.


* User Friendly * Strong Customer Service INTERNAL WEAKNESS * Balance between individuals and companies selling * Quick growth has caused some internal struggles * Stock Price * Sustainable Growth * Ability to compete with Niche Competitors * Immature Global Expansion Opportunities * Global; Asia, Latin America, & E. Europe * Trade via wireless devices * Estimated Grow in global eCommerce * eBay API; to embed eBay into other sites * Entry into Niche Markets THREATS * Creating new content in a new language * International Tech Support * Bandwidth Management * Legislative & Regulatory Restrictions * Strong Customer Service Appendix A - Estimated Market Usage Potential 56 Current population statistics support the above table, however, the 2004 estimates are more closely aligned with 2003 Actuals. This suggests that population growth was not as high as expected. Therefore, our projections took that into consideration and usage expectations were decreased. 7 1 Strategic Management Concepts and Cases, Thompson and Strickland, 12th Edition, P. C-263 2 Strategic Marketing Problems, Kerin and Peterson, 10th Edition, P. 97 3 Strategic Marketing Problems, Kerin and Peterson, 10th Edition, P. 89 4 Strategic Marketing Problems, Kerin and Peterson, 10th Edition, P. 96 5 Strategic Marketing Problems, Kerin and Peterson, 10th Edition, P. 103 6 Strategic Marketing Problems, Kerin and Peterson, 10th Edition, P. 101 7 Population Reference Bureau, http://www.prb.org/ 1 2 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Marketing and Markets section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Marketing and Markets essays

  1. Analysis of the current strategic situation facing Marks & Spencer.

    By going back to their original fundamentals, examining their existing strengths and deciding on a market segmentation strategy that best matches these strengths, M&S should be able to become profitable once more. Continuous adequate market research must be conducted to ensure M&S does not lose touch again with their target market as another mistake could critically damage the organisation.

  2. Event management

    forms available By determining whether tickets will be sold in advance or purchased at the event, will help the event organizers to determine necessary crowd control measures and to plan accordingly. VIP'S and media will reserve their own tickets. Buying tickets (See Appendix 10)

  1. I have been asked to produce a marketing strategy for an existing or new ...

    A graph showing the percentage of people driving various different cars, who bought their cars new This graph shows that a greater percentage of Mercedes drivers purchase their cars new compared to any other car owner. The next graph shows the percentage of drivers who are loyal to their current car manufacturer.

  2. For this project I have been instructed to come up with a marketing strategy ...

    and free call time, but the amount depended on the network you had a contract with. My primary research backed up my secondary research and showed that Nokia was the biggest selling brand of mobile phones, with 75% of my participants claiming that they owned a Nokia phone, compared to a very small 7% for Nokia's closest rivals, Sony.

  1. This coursework entitled "Marketing" is about creating a marketing strategy for a new or ...

    Currently unemployment is at a record low, only 4.7%, as can be seen in the graphs below. This again gives the impression that the current economic climate is good and so a higher price can be set for the A6 and more spent on production and promotion.

  2. This report will focus on the adult palliative care provided by SAH proposing a ...

    Corporate donations will represent a major opportunity for long term financial resources whilst the subject of palliative care is still viewed very much as a 'taboo' subject and any proposed plan will need to take this into consideration. 4.1.4 Technological With regards to technology the internet represents the main factor in opportunities and threats to SAH.

  1. Produce a marketing strategy for a new or existing product

    The purpose of this is so that you can't miss the magazine from any angle. Cosmopolitan start their magazine with fashion using exaggerated words like "flirty fashion", basically to encourage readers. These are followed by some love stories persuading readers to read on.

  2. Marketing Strategy - Nintendo Gamecube

    Reading product reviews from the Internet, buying game magazines and talking with my friends about it will carry this out. I can then read the theory about marketing and the various aspects on the topic and apply the theory to what I know about the Gamecube and the market that

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work