Ebay Case Analysis 2 - Essay Example

In the event that a sale materializes, the customers pack, insure, and ship the sold items to the buyer. The buyer, on the other hand, handles the payment and verification of the sold items. Collectively, the outlined measures make eBay’s model scalable” (expandable devoid of a proportional rise in cost). #2. eBay’s possible rationale for expanding internationally The speedy development of internet technologies has yielded to the emergence of e-business companies (Dutta 684). eBay offers a broad range of products, globally expanding and generating a community for all clients to join eBay.

The potential rationale for eBay international expansion hinges on the desire to increase its: number of registered users, user activity, PayPal transactions, user gross merchandise volume, and number of listings. eBay’s global presence seeks to take advantage of the growing online shopping usage (Hitt, Ireland, and Robert 235). # 3. International arenas for eBay: France and Japan The CAGE Distance framework highlights cultural, administrative, geographic, and economic differentials or distances between countries that ought to be addresses when coming up with international strategies.

CAGE framework can also be employed to dissect patterns of trade, information, capital, and people flows. In terms of cultural distance, there is “wide” cultural distance owing to different languages, diverse ethnicities (absence of connective ethnic and social networks), diverse values, norms, and dispositions (Hitt, Ireland, and Hoskisson 236). With regard to geographic distance, both France and Japan are far-off the parent company’s location; nevertheless, the rise of globalization and the advancement of ICT has facilitated trounced over geographical distance.

Hence, Japan and France can still remain desirable markets for eBay. # 4. Alternative vehicles that eBay has used to pursue international expansion There are several components that can be cited as contributing to eBay’s strategic plan for growth. In its expansion efforts, eBay employs investment and acquisition strategy. eBay is a very diverse entity and services that the company avail is appealing to individual customers, as well as large corporate customers (Hitt, Ireland, and Hoskisson 235).

eBay’s corporate strategy centers on diversifying business to products offered, as well as customer base and global reach. eBay keeps on changing, adapting, and highlighting fresh ways to master its environment. # 5.Issues and problems that eBay is facing In the case, eBay is attempting to address one prominent problem: Competitions, as other players such as Yahoo! push for a slice of the market. eBay pursues to have the largest user base to attempt to fend off the growing competition, which means that it has to try to lure customers from its competitors.

With regard to entering the Japanese market, eBay was hoping to take advantage of the giant market given that Japan had evolved to become the second largest market for person-to-person auctions. However, Yahoo, in a joint venture with Softbank, had already made successful inroads into the Japanese market to the level of commanding a sizeable market share. As a result, eBay faces the problem on whether it should cut its losses and exit the Japanese market. With regard to the acquisition of iBazar, eBay was counting on