eBays Strategy in China: Alliance or Acquisition Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

In December 2006, eBay, Inc, an American company that offers e-commerce, e-payments and Internet communications services around the world, has announced plans to establish a joint venture with China-based Internet portal and wireless operators, TOM Online, which give each company, 49% and 51% respectively. It was the third strategic eBay in motion in China, after the acquisition of a 33% share in the domestic analogue EachNet in 2002 marked his entry, and complete the purchase in 2003. Despite the initial good results, eBay has been losing market share of local competitors and a wholly-owned subsidiary of Alibaba-TaoBao. By 2006, eBay has seen its market share fall from a high of 85% to a staggering 29%, while TaoBao has continued to increase, reaching 60%. The joint venture is why the attempt eBay, to save it without the Chinese operations. The move also reflects the increasing difficulties of foreign Internet companies face in China due to stiff competition and changing market environment. eBay believes that it will benefit from the knowledge of local TOM Online and political ties. However, some analysts doubt political connections were the only answer, and suggested that eBay focus on their products and services instead. You can use eBay as a joint venture for its success in China? What alternatives are there as eBay to improve its strategic position in the Chinese market? "Hide
by Lou Jiangyong, Zhigang Tao, Isabella Chan Source: University of Hong Kong, 32 pages. Publication Date: November 27, 2007. Prod. #: HKU701-PDF-ENG