EBay Development in Asia - Essay Example

EBay has been known as the most renowned firm as it has been a reliable form of internet-based shopping. It is customers on a global level who rely on the firm. For greater customer support and for enhancing its market share, as any other success-oriented firm, eBay has been looking out to reach international markets (Yusuf and Evenett, 2002, p. 22).

EBay has been trying to make its way into the Asian markets. It has been noticed that American companies have had to face some problems in making their way into the Asian markets. However, Starbucks has been successfully working in Asian markets for many years.

Cultures influence the markets thus making them cultural markets and these are the main factors that are to be understood. EBay has been a failure in understanding the culture of Asian markets (Lovelock and Wirtz, 2005, p. 23).

Gunaxi is the term that American companies should be familiar with. This explains the basic nature of dynamics involved in the personal network of influence and this concept runs in Chinese society. This explains the dealing between two people in which one of the persons performs an act of service. EBay has failed to learn the fact that the Chinese, after the Africans, are corrupt people and bribery is a common factor in Chinese society. To excel in Chinese society, eBay has failed to take notice of how Chinese people could be handled to make ways in the markets. EBay had to make sure that the right officials were burritos to make their way into the markets (The University of California, 2006, p. 33).

Marketing is an integrated communication-based process wherein it is understood that the needs of the customers can be satisfied through proper communication. Marketing orientations play an important role in marketing strategy. Product orientation is where the firm is concerned with the quality of the product. Sales orientation, customer orientation, production, marketing, and organizational orientation are the main orientations that firms have to keep in mind.

For proper marketing, the four Ps are known to the marketing world. The four Ps are necessary to understand the basic requirements for international marketing. The four Ps are inclusive of the Product deals with specifications related to the products as well as the needs of the customer. Pricing includes the prices as well as the discounts being offered on the products. Placement or distribution refers to how a product reaches the customer. Promotion is how a product is marketed in the market to attract customers. These are the four main points that eBay has to keep in mind when reaching out to international markets (Freeman and Bartels, 2004, p. 33).

These are the four points that make up the marketing mix for any organization. Apart from these four points, the other issues that should be kept in mind while reaching out to the international markets are the cultural differences with the other countries. These are the main errors that have been committed by eBay when making their way into the international markets, especially Asian markets.

In addition to this, expansion and entry into foreign markets can be achieved successfully by following the four mechanisms. Exporting is the mechanism by which an international market can be reached properly by selling the product in a foreign market. The property of the licensor for product production can be used by the mechanism of licensing in a foreign country. Joint ventures in foreign countries are done for risk sharing as well as market entry and technology sharing. Foreign Direct Investment in a foreign country can achieve the ownership of facilities there (Yusuf and Evenett, 2002, p. 44).

Market selection and market entry mode selection are the two processes and aspects of market entry decisions. Many factors influence success in the foreign market, especially awareness and knowledge related to the foreign culture.