eBay & Yahoo! in Japan: From Competition to Collaboration


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Case Details:

Case Code : BSTR312
Case Length : 19 Pages
Period : 2000-2008
Pub Date : 2009
Teaching Note :Not Available
Organization : eBay Inc., Yahoo ! Inc.
Industry : e-commerce
Countries : Japan; Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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eBay Joins Hands with Yahoo! in Japan Contd...

On Yahoo and eBay teaming up, Meg Whitman6, President and CEO, eBay, said, "We are excited to partner with Yahoo Japan in providing Japanese users with localized site designed to enable them to shop on the eBay marketplace with ease and convenience."7

As part of the agreement, the companies decided to start a Japanese website, Sekaimon8. In addition to translating the names and details of the items listed on eBay's US website into Japanese, the site provided services like overseas shipping and customs clearance.

According to Hiroko Sato, analyst at JP Morgan, Chase & Co, Tokyo, "the alliance will create a very attractive service for U.S. and Japanese users as it allows them to purchase items simultaneously in both countries."9

Yahoo Japan was incorporated in 1996 as a joint venture between US-based Yahoo! Inc. (Yahoo) and Japan-based SoftBank Corporation (SoftBank) to manage the Japanese versions of the Yahoo websites10. It provided entertainment, Internet shopping, e-mail, search, and information listing services in Japan.

One of the most popular services that Yahoo Japan provided was online auctions. It started online auctions in September 1999 and was the first website to introduce auctions in Japan. From the beginning, Yahoo Japan Auctions was highly successful. After several highly successful international ventures, eBay first entered Japan in 2000...

Excerpts >>


6] Margaret C Whitman (Meg Whitman) retired from eBay in 2008. She was succeeded by John Donahoe.
7] "eBay, Yahoo Japan Team up Services,"www.taipeitimes.com, December 5, 2007.
8] Sekaimon in Japanese means 'Gateway to the world'.
9] Masaki Kondo, Kiyotaka Matsuda, "Yahoo Japan Shares Gain on Online-Auction Alliance with eBay,"www.bloomberg.com, December 4, 2007.
10] As of 2008, SoftBank and Yahoo were the major shareholders in Yahoo Japan, with SoftBank holding a 41% stake and Yahoo 33.4%.


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