eBay & Yahoo! in Japan: From Competition to Collaboration
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Case Code: BSTR312 Case Length: 19 Pages Period: 2000-2008 Pub Date: 2009 Teaching Note: Not Available |
Price: Rs.300 Organization: eBay Inc., Yahoo! Inc. Industry: E-commerce Countries: Japan; Global Themes: Competition, Collaboration, Entry Strategy, Expansion Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
"In the Japanese e-auction game, eBay has been thoroughly trounced by Yahoo Japan. In fact, the contest isn't even close. Yahoo Japan--the country's largest portal--has 95% of the online-auction market, where last year $1.6 billion worth of goods were traded. By contrast, eBay Japan--whose only business is auctions and whose parent dominates online auctions in the U.S.--has a measly 3% of the Japanese market."
-BusinessWeek, in 2001.
"A new partnership between eBay and Yahoo Japan returns the online auctioneer to a country where Yahoo dominates the Internet landscape. Five years ago, eBay left Japan, unable to breach Yahoo's stranglehold on the national Internet user community. The return of eBay to Japan via an agreement with Yahoo fills in a gap in eBay's international business."
-WebProNews, in 2007.
eBay Joins Hands with Yahoo! in Japan
In December 2007, eBay Inc. (eBay), the US-based online auction company, announced its reentry into Japan, through an agreement with US-based Internet services company, Yahoo! Inc. (Yahoo). eBay and Yahoo agreed to link their auction sites to facilitate cross-border bidding.
This would enable users of Yahoo Auctions Japan to bid for items listed on eBay's US site using their Yahoo Japan ID, and eBay users in the US to buy items auctioned on Yahoo Japan using their eBay ID.
On Yahoo and eBay teaming up, Meg Whitman, President and CEO, eBay, said, "We are excited to partner with Yahoo Japan in providing Japanese users with localized site designed to enable them to shop on the eBay marketplace with ease and convenience."
As part of the agreement, the companies decided to start a Japanese website, Sekaimon8. In addition to translating the names and details of the items listed on eBay's US website into Japanese, the site provided services like overseas shipping and customs clearance.
According to Hiroko Sato, analyst at JP Morgan, Chase & Co, Tokyo, "the alliance will create a very attractive service for U.S. and Japanese users as it allows them to purchase items simultaneously in both countries.
Yahoo Japan was incorporated in 1996 as a joint venture between US-based Yahoo! Inc. (Yahoo) and Japan-based SoftBank Corporation (SoftBank) to manage the Japanese versions of the Yahoo websites. It provided entertainment, Internet shopping, e-mail, search, and information listing services in Japan.
One of the most popular services that Yahoo Japan provided was online auctions. It started online auctions in September 1999 and was the first website to introduce auctions in Japan. From the beginning, Yahoo Japan Auctions was highly successful. After several highly successful international ventures, eBay first entered Japan in 2000...
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