EBAY

eBay in Asia

eBay in Asia

Introduction

An American global company EBay is one of the leading online market place that offers a player of both buyer and sellers to come on the same platform and trade anything would they like (Gopalkrishnan & Gupta, 2007). In an online auction of eBay, the bidding is open and towards the price specific and that will remain for a certain number of days on EBay website. The buyer who put highest bid gets the specific item. EBay is very successful in all around the world except Asian market epically China, Japan. This paper will explore the key factors through which EBay struggles in Asian Market. In later part of this paper, I will help EBay to formulate their strategies to stop struggling in Asian Market.

Discussion

The objective to remain relaxed in this competitive environment, EBay realizes that they should first make their intention in the domestic market as it done by Yahoo and Amazon. Therefore in year 1999, EBay spring up all around the world. However, the online company is failing to understand that their users spread more than 50 countries all around the world which is completely in American Context.

Market Differences

Company should have to their mind that all the countries does not like to follow the same EBay model without that fails to serve them a local context. Company actually is underestimating the differences between the U.S and Asian market. The early development of EBay is US market was the base on cue in United States, but they failed to understand that some Asian Culture stigma is against from these habits (Lafage, 2012). In a number of Asian countries, not even sibling are interested in share their clothes. Although it was determining that, trade is considering as the basic human urge. There is some variation in perception, beliefs, attitude and the behavior of buying from internet crossing the different regions of geographic that EBay have to understand.

Cultural Values

The second most important thing that EBay is fails to understand between the target country and the United States that provides economic risk and an additional level. The Asian market is actually depending on trust, and EBay online business transaction model is not base on the fair dealing. In Chinese market, there is the propensity to distrust over others and this is the reason that the buyer is in such critical condition to make trust over sellers before they are actually engage in unqualified transaction. The EBay is also failing to offers the real position of the buyer as well as to make communication immediately in order to made potential transaction. Although they offer non-integrate channel like an email and Skype that most of the time create difficult and trust less.

Commission Charges

One major factors due to which EBay struggles in Asian Market is the commission that EBay charge on each successful transaction. On the other side, the other local online business models is not charging any commission over transaction that allows them a competitive advantage over EBay in Asian ...