Abstract

The case discusses the Japanese ventures of eBay and Yahoo! Auctions (Yahoo). US-based online auctioneer, eBay entered Japan in 2000, after several successful international ventures. But eBay could not get the required mileage in the country, and chose to exit Japan in 2002. On the other hand, Yahoo Auctions, which was launched in Japan in 1999, tasted unprecedented success. eBay's exit from Japan was largely attributed to the fact that it was unable to break Yahoo's stranglehold of the market. The case discusses in detail, the strategies adopted by both the companies in the Japanese market, and the reasons for the debacle of eBay and success of Yahoo in this market. The case concludes with the details of eBay's reentry into the country through a joint venture with Yahoo through the launch of website Sekaimon.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Study eBay and Yahoo! Auction's strategy in Japan and compare and contrast the strategies adopted by the two companies.
• Analyze the reasons for eBay's failure and Yahoo! Auction's success in Japan.
• Analyze the reasons for the two companies coming together to launch Sekaimon in Japan.

Keywords

Competition, Collaboration, Entry, Expansion, Strategic alliance, Online auction, e-commerce, Japan, eBay, Yahoo, Sekaimon