PayPal Helps Fuel Revival at eBay - Essay Example

? International Marketing Contents Contents 2 Introduction 3 Discussion 3 Article 3 Article 2 4 Conclusion 6 References 7 Introduction International business has been majorly accelerated by the advent of globalization. The multinational companies all over the world have implemented strategies to capture the world market. Here we take into consideration two articles:PayPal Helps Fuel Revival at EBay which was published on the Wall Street Journal on 17th October, 2012 and Global Marketing: Local heroeswhich was published on The Economist on 14th January, 2012. The first article is related to the boost of electronic commerce as an integral part of international business. The second article is related to multinationals opening up their operations in different parts of the world, especially in the emerging markets of the economy. Discussion Article 1 The article titled “PayPal helps fuel revival at EBay” was published on October, 2012 following the announcement of the September financial results of EBay (The Wall Street Journal, 2012). The business of EBay had suffered during the first two quarters of 2012 but showed a revival in the third quarter financial results. The growth in the revenues of EBay was fuelled by the payments through PayPal. The revenue of EBay rose to USD 3.4 billion with an increase of 15% above the previous revenue generated by the business. The profits and growth of the company were further attributed to the launch of a new website and more developed features in worldwide listing and shipping services. EBay has successfully captured the global e-commerce market with its power shipping and same day shipping programs. The shipping programs of EBay provide a significant competitive edge for the business over its competitors like Amazon.com and Wal-Mart stores. The new design of the eBay website was aimed at capturing more market share by offering user friendly services and fast checkout systems. PayPal was acquired by EBay Inc. in 2002 after which PayPal was used as the only electronic payments system for EBay in the United States market as well as in the global market for cross country transactions of goods and services. EBay had acquired Billpoint in 1999 to use its services for the electronic payment gateway. But Billpoint faced severe competition from PayPal which was the mode of payment for 25% of the auctions in EBay. So, EBay decided to acquire PayPal as an important corporate strategy to increase their market share and the growth of the company. The alliance of EBay and PayPal was a revolutionary alliance in the e-commerce industry which highly boosted EBay sales and attracted customers from all across the globe. PayPal was a main element which drove the success of EBay as an e-commerce giant in the international market. E-commerce is one of the most evolving features of globalization. EBay has enabled the users all across the world to research, buy and sell products on their site. The e-commerce site also is an important sourcing site for a number of merchants trading globally. EBay has evolved as a wide platform consisting of suppliers and buyers from different industries varying from clothing, food, accessories, furniture, books, electronics and everything else that is traded in the world. PayPal distinctively contributed to the revenue generation of EBay by increasing the customer bottom line and providing a delightful experience for the customers. In the light of globalization, EBay has successfully applied technological integration in its business processes. Article 2 The article titled Global Marketing: Local Heroes is related to the publishing of the book All Business is Local: Why Place Matters More Than Ever in a Global Virtual World by John Quelch and Katherine Jocz (The Economist, 2012). The article refers to the increasing importance of the locations for a business and the growing trend of the big companies trying to penetrate the untapped markets. The multinationals strongly targeting the emerging markets has made the world more interconnected. The companies entering the new regions have to adopt the culture and mannerisms of the region and integrate them into their operations to make them successful in the particular countries (Paul,2008, p.41). The best global brands are likely to succeed locally only when they adopt business models to suit the environment of the new market. For example, McDonalds customized its menu according to the needs of different geographical areas though they kept their slogan globally same. The company included Spicy McChicken burger in Bangkok, dark bread rolls in Vienna and Indian masala grill burger in India to suit the local tastes of the different countries.The business model adopted by McDonalds to start their operations in India was designed by implementing the local culture and ethics which brought immense success for the company when similar companies failed in India. The article indicates towards the growing importance of one of the 4Ps of marketing i.e. place in the globalized business practices. The author suggests that a company can survive in anew country only when it adapts to the environment and considers the local factors like the suppliers in the market, the consumer behavior of the target segment and the cultural and social values of the country. The author also suggests how the environment influences the behavior as well as the needs of the consumers. He also hints at the challenges faced by different companies when they decide to go global. The article relates to the fact that the world is becoming a more complex environment for business with the increase in globalization and international business. The article also hints at the fact that though the companies are more allured towards the global markets, they should actually concentrate on the local markets to achieve a strong global presence (Justin, 2012). Conclusion International business is aimed at successfully integrating the economic, personal, political and technological factors throughout the globe. With the advent of globalization, the electronic commerce businesses and international trades are growing at an accelerated rate. The whole world is now considered as a global market. Electronic commerce ensures the flow of goods and services across countries with the help of the latest technological innovations. On the other hand, international business practices are gaining more and more importance with multinationals expanding into all possible markets in the world. Profit maximization is the key objective underlying the strategies of both electronic commerce and internationalization of businesses. References The Wall Street Journal. 2012. PayPal helps fuel revival at EBay. [Online]. Available at http://online.wsj.com/news/articles/SB10000872396390444734804578062971668062126. [Accessed on 4th December 2013]. The Economist. 2012. Global Marketing: Local Heroes. [Online]. Available at http://www.economist.com/node/21542733. [Accessed on 4th December 2013]. Paul, J. 2008. International Marketing: texts and cases. New York: McGraw Hill. Justin, J. 2012. How to compete in China’s e-commerce market? [Online]. Available at http://sloanreview.mit.edu/article/how-to-compete-in-chinas-e-commerce-market/. [Accessed on 4th December 2013]. Read More