eBay changes its Strategy in China*

Details

Case Code : CLBS080
Publication date : 2009
Subject : Business Strategy
Industry : -
Length : 04 Pages
Price : Rs. 100

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Key words:

eBay, EachNet, TOM Online Inc, e-commerce, m-commerce, online auctions, joint venture, strategy, Alibaba.com, Taobao, consumer buying behavior, iResearch, market research, market share, Morgan Stanley, BDA China, investment banking, brokerage, online portal, synergy, operating losses

Note

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Abstract:

eBay shifting its strategy in China for exploring opportunities for growth in the e-commerce and m-commerce markets. The strategic shift was eBay's attempt to compete with Taobao, an online auction site run by Alibaba.com. The rising popularity of Taobao resulted in eBay losing its market share.

Introduction On December 19, 2006, eBay EachNet, eBay's subsidiary in China announced a Joint Venture (JV) with TOM Online Inc (TOM Online), a Chinese online portal and wireless internet company, for exploring opportunities for growth of e-commerce and m-commerce in the rapidly growing Chinese market. eBay would hold 49 percent stake in the JV while TOM Online would hold the remaining 51 percent. eBay also said that the new auction website developed by the JV partners would be launched in 2007 and that it would replace eBay’s website in China.

Commenting on the JV, Meg Whitman, President and CEO, eBay Inc said, "eBay has helped pioneer e-commerce in China, and by combining our expertise with that of a strong local partner like TOM Online, we are even better positioned to participate in this growing market. This agreement is a sign of our continued commitment to delivering the best online buying and selling experiences in China."...

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