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Strategic Management Case Study Ebay

1946 Words8 Pages

Case 3 – eBay Sunday, October 19th 2014 Giovanni (50059506) Giovanni Jesslyn MGO 403 (L01) October 19th 2014 – MGO 403 Fundamentals of Strategic Management 1. How did eBay pursue international growth? There are 2 ways in which eBay pursue its international growth. Firstly, by entering new attractive sectors such as online shopping (eBay Style), online communications (Skype), online payment (Paypal), online apartment listing service (Rent.com) and many more. Secondly, by expanding its operation globally such as penetrating to Asia Pacific, Europe and North America markets. There are several ways in which eBay enter various sectors internationally. For instance, in 2012 eBay partnered with Xiu.com to launch a new online shopping platform, …show more content…

There are many tangible resources listed from textbook chapter 3 such as physical assets, financial assets, technological resources and organizational resources. However, for eBay, financial assets are the most important assets that support eBay’s competitive advantage. With great financial assets, eBay is able to develop broad product categories. Ebay has acquired many company and technology, for instance, Paypal, Rent.com, Stubhub.com, Skype and many more. All these acquisitions require millions of dollar and it can be easily totaled up to billions of dollar. Without great amount of cash, it is not possible for eBay to invest and acquire so many companies to have broad product …show more content…

This is also one of the area of external environment factors in Asia that eBay could not deal effectively. For instance, eBay competitors in Korea, Gmarket have a similar concept with eBay e.g. shopping experience, interaction with sellers etc. Gmarket is an auction site that has dominated the Korean market since the year 2000. There is no way eBay, as a newly introduced website in Korea in 2009, could beat Gmarket and become the leader in the online auction market like they are in U.S. In China as well, Taobao has dominated the industry, because it is a Chinese company, they are very aware of Chinese consumers preference and Chinese consumers are very comfortable with using the website. It is hard for eBay to beat Taobao because Taobao continue to developed themselves and improved themselves. For instance, introducing Alipay which work similar to Paypal, that is used by

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