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BBA 340 eBay in Japan: strategic and culture missteps


Dave Sun

on 24 March 2011

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Transcript of BBA 340 eBay in Japan: strategic and culture missteps

eBay in Japan: strategic and culture missteps Chris Lobejko
Daniella Holden
Dave Sun
Geofrrey Lo Major stakeholder Goals and Concerns pioneer new communities around the world built on commerce
sustained by trust
inspired by opportunity Problem from “team up” January 2001 Internet Auction Co. Ltd (Korea) October 2001 MercadoLibre.com (Latin American) 2002 Neocom Technology Co. Ltd (Taiwan) August 2004 Bazee.com Inc. (India) June 2005 Kijiji acquired Opusforum.org (German) 2007 GittiGidiyor.com (Turkish) Major Mistakes eBay chose wrong person? Food industry?

E-business? Merle Okawara US model VS Japan model

small team in Japan

Not being first mover consumers don't know who you are, culture missteps encounter strong competitor, with wrong partner 1996~XXXX 1997 1998 2000 2006 341,000 registered users 2.1 million users and had gained 138 employees 53 regional sites, covering 50 of the largest metropolitan areas in the U.S 2002 acquired paypal for $1.5 billion strategic partnership Cultural misunderstanding and Issues eBay made little effort to satisfy the cultural atmosphere of Japan But japanese refuse to buy 2nd hand product self-image affected their willingness to buy products online electronic payment is considered as unsecure Business lessons that come out of failure: "they tried to force Japanese consumers to fit the company's American-centric service model, rather than modifying the company's service model to meet local market needs" “made grandiose announcements about their entry into the Japanese market, well before they had a localised product ready to launch in Japan." (Lane,G, 2010) February 2000 Yahoo launched its auction site in September 1999 just 5 months before eBay Yahoo's reaction: first mover’s advantage Yahoo already attracted several big sellers and with them buyers to populate their site Issues about commission fee 4000
2,000,000 Yahoo created a create the integration platform 8% of their annual revenue on national wide advertising Conclusion
Acquisition of leaders
Know your competition fully market research
trustworthy image
communicate service
persuading different level of consumers
fully localised product Done!

Thank you, Arigatou

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