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Conceptual Review of the eBay Case Study Critical Essay

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Updated: Jun 23rd, 2022

History of eBay and strategic partners

eBay is an online auction company that does the business of listing products on its site to connect both sellers and buyers. The case study majorly enumerates on the history of eBay and clearly explains all the steps that the company has taken in its bid to increase its market growth and internationalize its operation.

Also contained in the essay are the strategic partners and alliances that eBay formed in order to grow. Clarifications are given on some of the factors that might have caused the company’s slow growth in Japan and the quality of management of the company among many more (Hsiao, 2011).

eBay strategic decisions

The main management issue here is the strategic decisions the company needs to make for it to widen its market share and customer base. In the case study, we get to know the strategic alliances that the company has entered into. The poor marketing strategy and promotional means that eBay has pursued could be responsible for the failure to penetrate the Japan market.

The robust competition in Japan from already established competitors especially yahoo auction dominance requires brilliant and stronger strategies if the company is to survive. eBay should increase its marketing cost and reduce its listing charges to break through the high switch cost from yahoo auction (Brooke, 1996).

Important data of case study

In the case study, the most important data is the information explaining the reasons for the company’s failure to penetrate the japans market. This is because such data can assist the managers to get information necessary in formulation of strategies and course of action the company can exploit. The information will also assist in analysis of trends and support the management assertion and decision.

From the analysis of the case study, the theories that need to be considered are the internationalization theories and the international business location theories.

This theories will improve the quality of decisions of internationalizing operations and determination of the locations which the company should establish its operation (Ahlstrom & Bruton, 2009). Pricing and promotional theories are also essential for the price setting and the advertisement decision to be undertaken by the company (Ahlstrom & Bruton, 2009).

The information pertinent to the management of eBay can be obtained from various reading materials. Text books on strategic management, international marketing and books on management of online services are useful. Other materials that can be used to gather data will be the journal of the company’s competitors like yahoo and the periodicals on online business linkages.

Information omitted in the data

Other information that should be included in the case study above is the financial statements of eBay and its strategic partners. Such information will be useful in the determination of the type of relationship that can be developed. Information on the company’s mission and vision will also be needed clearly incorporating the core values and other intermediate plans (Deresky, 2008).

Recommendation and conclusion

For the company to strategically establish itself, it needs to embark on heavy marketing strategies that can enable it penetrate the new desired market. Stronger strategic alliances and high quality services should be developed by the company (Elsevier, 2010). The site that is used for marketing must be made user friendly to be accessed by those without much computer knowledge.

eBay can also strategies by increasing their customer loyalty by initiating rewards and incentives for those who list and acquire products on their site. These decisions can only be made feasible by employing management with high qualification.

Reference List

Ahlstrom, D., & Bruton, H. D. (2009). International Management:Strategy and Culture in Emerging World. London: Cengage Learning.

Brooke, M. Z. (1996). International management: a review of strategies and operations. London: Nelson Thornes.

Deresky, H. (2008). International management:Managing across Boarders and Cultures. London: Pearson Prentice Hall.

Elsevier, T. (2010). How Emerging Economies are RESHAPING OUR Undestanding of Global Entrepreneurship. (M. Kotabe, Ed.) Journal of International Management , 16 (4), 321-434. Cahil.

Hsiao, A. (2011, 4 13). Understanding eBay Bidding. Retrieved from About.com:

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