eBay in Japan
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Case Code: BSTR282 Case Length: 12 Pages Period: 2000-2007 Pub Date: 2008 Teaching Note: Not Available |
Price: Rs.300 Organization: eBay Industry: Internet and E-Commerce Countries: Japan Themes: International Business, Globalization Business |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
eBay's International Ventures
eBay's international ventures began in late 1998. Due to growing competition in the US from websites like Amazon, Yahoo, and AuctionWatch, eBay began exploring opportunities in other markets......
eBay in Japan
In February 2000 , eBay entered into a joint venture with NEC Corporation (NEC), to form eBay Japan; NEC held a 30 percent stake in the company while the rest was held by eBay Inc..
What Went Wrong?
Several reasons were cited for eBay's failure in Japan. According to analysts, however, the main reason was the dominance of Yahoo Auctions in the Japanese online auctions market. Yahoo having entered Japan in 1996 through a joint venture with SoftBank made the right moves to become the largest Internet access provider and the largest portal in Japan...
The Aftermath
After its Japanese misadventure, eBay chose to expand into countries like China and Taiwan by acquiring leading auction websites, where it relied on local brands for growth and market share. According to Sherif Mityas, a vice president in the consumer business and retail practice at A.T. Kearney , "Two important issues for companies like eBay are novelty and loyalty. In North America, where eBay was one of the first companies to institute the Internet auction model, it is enjoying both. Its experience in Japan, however, has taught it that if you're not the first one in a market, it is very difficult to get people to use your site. In those markets you have to buy the leaders, and the loyal customer bases attached to them."...
Exhibits
Exhibit I: eBAY Japan's Homepage
Exhibit II: Internet and E-Commerce in Japan
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