eBay & Yahoo! in Japan: From Competition to Collaboration

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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.

Case Details:			Price:
Case Code	:	BSTR312	For delivery in electronic format: Rs. 300; For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges Themes Competition/ Collaboration/ Entry strategy/ Expansion strategy
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

Abstract:

The case discusses the Japanese ventures of eBay and Yahoo! Auctions (Yahoo). US-based online auctioneer, eBay entered Japan in 2000, after several successful international ventures. But eBay could not get the required mileage in the country, and chose to exit Japan in 2002.

On the other hand, Yahoo Auctions, which was launched in Japan in 1999, tasted unprecedented success. eBay's exit from Japan was largely attributed to the fact that it was unable to break Yahoo's stranglehold of the market. The case discusses in detail, the strategies adopted by both the companies in the Japanese market, and the reasons for the debacle of eBay and success of Yahoo in this market.

The case concludes with the details of eBay's reentry into the country through a joint venture with Yahoo through the launch of website Sekaimon.

Issues:

» Study eBay and Yahoo! Auction's strategy in Japan and compare and contrast the strategies adopted by the two companies.

» Analyze the reasons for eBay's failure and Yahoo! Auction's success in Japan.

» Analyze the reasons for the two companies coming together to launch Sekaimon in Japan.