Ebay.S Strategy in China: Alliance or Acquisition Essay example

Words: 3183
Pages: 13

Table of contents
Introduction 3
E-Bay Company 4
The Chinese opportunity 6
The main problem 8
Tom EachNet 11
Benefits 11
Risks 12
Critics 12
Conclusion 14
References 15


E-Bay was the first company that made possible to sell products on the internet. Nowadays, internet takes a huge place in business activities and not only for B2C or B2B business but also in C2C. This last point is the main activity of E-Bay.
But this system buyers and sellers never meet, they exchange money for goods and E-Bay doesn’t have to be involved in the most important and expensive part of the e-commerce (or e-business) which is shipping the product (this part is the responsibility of the seller).
E-Bay, and in general, all the
…show more content…
The local company Taobao gets today 60% of the market share against 29% for EachNet. If EachNet failed with the Taobao success, it’s because of the Taobao service offering trustful platform and has extended its CtoC activity to the BtoC activity as well.
Today, E-Bay is losing market share and need to react; the company’s plan is to expand its activity to China through a joint-venture with the China-based online and wireless operator TOM online in which E-bay would have 49 % of ownership.
As we said, E-bay is already present on the Chinese market because the company owns Each Net, a domestic online auction company. In addition, E-Bay also owns Skype, a global online communication company, which was already integrated indirectly in China through a joint-venture with TOM online.
TOM online is a local online company well-implemented in the Chinese market with a very good experience and a knowledge of the market and with interesting political connections.
The company hopes to reach a new growth with the joint venture with TOM online because establishing a business in China is not so easy. The main problem will be partners. If any company wants to be on the local market, they have to be in relation with local partners. Normally local partners will be well establish and with good relation with government, but also you have to bring something to the country