eBay's Problems in China


eBay's Problems in China
Case Code: BSTR278
Case Length: 19 Pages
Period: 2002-2007
Pub Date: 2008
Teaching Note: Not Available
 Price: Rs.300
Organization: eBay
Industry: Internet and E-Commerce
Countries: China
Themes: Globalization, International Business, Joint Venture
eBay's Problems in China
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

This case is about the challenges faced by eBay Inc. (eBay), a leading e-commerce company, in the Chinese online trading market. eBay entered China in 2002 by acquiring EachNet, a leading auction site in China and was successful in capturing a considerable share of the Chinese e-commerce market. However, by 2005, eBay failed to attract the Chinese consumers though the company modeled its Chinese site on the lines of its globally successful site. eBay also faced tough competition from local e-commerce companies such as Taobao.com (Taobao).

Recognizing the need for having a local partner that was more attuned to the needs of the local customers, eBay entered into a joint venture with TOM Online Inc (TOM Online) to form TOM eBay in late2006.

Issues

The case is structured to achieve the following teaching objectives

  • Understand the issues and challenges faced by eBay in the Chinese e-commerce market
  • Understand the reasons behind the decline of a market leader
  • Examine the strategies adopted by eBay to improve its business operations in China
  • Understand the business environment in China from the point of view of a foreign Internet company

Contents

Keywords

Strategy, Competition, Business model, Joint Venture, Management, Market leadership, e-commerce, m-commerce, C2C, China, Guanxi, eBay, Taobao, Meg Whitman, Yahoo!, Alibaba, Baidu

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