Subject category:
Strategy and General Management
Published by:
IBS Center for Management Research
Length: 20 pages
Data source: Published sources
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Abstract
This case is about the challenges faced by eBay Inc, a leading e-commerce company, in the Chinese on-line trading market. eBay entered China in 2002 by acquiring EachNet, a leading auction site in China and was successful in capturing a considerable share of the Chinese e-commerce market. However, by 2005, eBay failed to attract the Chinese consumers though the company modelled its Chinese site on the lines of its globally successful site. eBay also faced tough competition from local e-commerce companies such as Taobao.com. Recognising the need for having a local partner that was more attuned to the needs of the local customers, eBay entered into a joint venture with TOM Online Inc to form TOM eBay in late 2006.
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Abstract
This case is about the challenges faced by eBay Inc, a leading e-commerce company, in the Chinese on-line trading market. eBay entered China in 2002 by acquiring EachNet, a leading auction site in China and was successful in capturing a considerable share of the Chinese e-commerce market. However, by 2005, eBay failed to attract the Chinese consumers though the company modelled its Chinese site on the lines of its globally successful site. eBay also faced tough competition from local e-commerce companies such as Taobao.com. Recognising the need for having a local partner that was more attuned to the needs of the local customers, eBay entered into a joint venture with TOM Online Inc to form TOM eBay in late 2006.