Case ID: HKU701     Solution ID: 29844

eBays Strategy in China Case Solution

Abstract

In December 2006, eBay, Inc, a US organization that offers web based business, e-installments and web correspondence benefits universally, reported its arrangement to frame a joint wander with China-based online gateway and remote administrator, TOM Online, that would give each organization 49% and 51% proprietorship, individually. This was eBay's third vital move in China, taking after its securing of a 33% stake in household partner EachNet in 2002 that denoted its entrance into the market, and a full procurement in 2003. Regardless of the underlying great outcomes, eBay had been losing piece of the overall industry to neighborhood opponent and Alibaba's completely claimed auxiliary TaoBao. By 2006, eBay had seen its piece of the overall industry drop from a high of 85% to an amazing 29%, while TaoBao's kept on expanding, achieving 60%. This was an endeavor by eBay to spare its coming up short Chinese operations. The move mirrored the expanding challenges outside web organizations present in China as a result of rivalry and a changing external conditions. eBay trusted that it would profit by TOM Online's nearby information and political associations. A few investigators addressed whether political associations alone were the appropriate response and recommended that eBay concentrate on its item and administration offerings. How could eBay use the joint dare to its accomplishment in China? What choices did eBay have for upgrading its position in the Chinese market?


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