eBay & Yahoo! in Japan: From Competition to Collaboration
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ICMR HOME | Case Studies Collection
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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Please note:
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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Excerpts Contd...
eBay Fumbles
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After one year in Japan, eBay was able to secure only a 3 percent share of the online auctions market, valued at US$ 1.6 billion. Not finding many takers for its online auctions, it decided to scrap fees for online transactions in March 2001...
The Reasons...
Traditionally, the Japanese were averse to using second-hand goods. They also avoided buying old goods because they believed that the bad luck, if any, of the previous owner would rub off on to the new one. Further, retail space in Japan was very expensive, making businesses dealing in used items unviable...
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Looking Ahead
After its Japanese misadventure, eBay chose to expand into countries like China and Taiwan by acquiring leading auction websites, where it relied on local brands for growth and market share. According to Sherif Mityas, a vice president in the consumer business and retail practice at A.T. Kearney ,
"Two important issues for companies like eBay are novelty and loyalty. In North America, where eBay was one of the first companies to institute the Internet auction model, it is enjoying both.
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Its experience in Japan, however, has taught it that if you're not the first one in a market, it is very difficult to get people to use your site. In those markets you have to buy the leaders, and the loyal customer bases attached to them."...
Exhibits
Exhibit I: Yahoo's Business Activities (As of 2007)
Exhibit II: Softbank Corporation
Exhibit III: Internet and e-Commerce in Japan
Exhibit IV: eBay Japan's Homepage
Exhibit V: Web Page of Yahoo Japan Auctions
Exhibit VI: Web Page of Sekaimon |
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