Capstone Case: EBays implementation in China
- EBay first entered the Chinese market in 2002 by acquiring a 33% stake in its local counterpart, EachNet, followed by a full acquisition a year later in 2003. Critically assess EBay's choice of a market entry strategy for China, commenting on both the advantages and disadvantages of its acquisition strategy
- Assess the potential benefits and risks of eBay's joint venture with Tom Online
The Internet sector has been animated by a lot of investment during 1990's period with the Internet bubble, and a lot of company has invested in start up in trusting in a new profitable sector. Every investor wanted to be the first one to enter the market and to lead competition through business idea. After having growing up during decades, companies as Google, Yahoo, Amazon and EBay tried to expand their business on different market than North America. Many parameters have been misunderstood by many of the dotcoms companies as strategic, operational, technical, and behavioral. Some of them have entered several markets notably in China by realizing a joint venture in order to realize a strategic alliance. A strategic alliance is a business arrangement in which two or more firms cooperate for their mutual benefit. Firms may combine their efforts for a variety of purposes including, but not limited to, sharing knowledge, expertise, and expenses as well as to gain entry to new markets. By the way EBay has implement step by step very late the Chinese market probably because it was a huge question for the EBay's management. In this case we will analyze how eBay has handled these parameters through the different joint venture that the company realized in China.