Case_38_eBay_TN - Teaching Note: Case 38 eBay: Expanding...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Teaching Note: Case 38 eBay: Expanding into Asia Case Objectives 1. To discuss the decisions and actions that a firm has to undertake to sustain a competitive advantage, especially when pursuing international growth. See the table below to determine where to use this case: Chapter Use Key Concepts Additional Readings or Exercises 2: External Environment External environmental forces NOTE – additional reading, web links, embedded video. Also see Case DVD. 3: Internal Analysis Tangible vs. intangible resources 4: Intellectual Assets Human capital; intellectual capital 5: Business- Level Strategy Generic strategies 6: Corporate- Level Strategy Corporate strategy; synergy; acquisition 7: International Strategy International expansion; transnational, global strategies NOTE – additional reading, web links Case Synopsis Since its inception in 1995, eBay had enjoyed strong revenue growth, and was a dominant player in the worldwide online auction industy. In 2008, new CEO John Donahoe reported an impressive 11 percent increase in revenue from the previous year, with an operating margin of 24 percent. EBay created revenue from three sources through multiple online products and services: eBay’s marketplace received merchandise fees from items sold either by auction or fixed-price transaction; the payment division received financial transaction fees from its PayPal service; and communication fees were received primarily via customer use of Skype. Despite eBay’s outstanding growth performance, achieved mainly through both foreign and U.S. acquisitions, the company still faced a number of challenges in both domestic and international markets. As a growth strategy, eBay had created options and targeted distinct market niches to distinguish itself from competitors. This was particularly important because as e-commerce and Internet usage rates continued to grow, so would the market opportunity for eBay. Because of its market-leading brand, eBay was in a unique position to capture a significant share of the market at an early stage. eBay had grown to successfully compete in certain international markets, including Europe and Latin America, but had been unable to penetrate the Asia Pacific market.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
eBay’s joint ventures in Asia, first with Tom Online in China, and then with Gmarket in South Korea, had not yet allowed it to achieve significant market share. Considering that the Asia Pacific region had more than 50 percent of the world’s population and was experiencing some of the largest online usage growth percentages in the world, tapping into this market was critical for eBay to expand. Why had it been unsuccessful? Teaching Plan The eBay case is an investigation of a company that chose to pursue growth into an international environment where it had little experience. A discussion of eBay’s difficulties can provide an opportunity for comparison to the other international cases such as Heineken, Lenovo, Geely, and McDonald’s. As such, this case is best positioned
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 11

Case_38_eBay_TN - Teaching Note: Case 38 eBay: Expanding...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online