Yahoo Auctions in Japan
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Case Code : BSTR309
Case Length : 17 Pages
Period : 1999-2008
Organization : Yahoo
Pub Date : 2009
Teaching Note :Not Available
Countries : Japan
Industry : Internet & e-commerce
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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.
The Secrets of Success
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 the new one. Further, retail space in Japan was very expensive, making businesses dealing in used items unviable. Due to these reasons, there had never been an organized market for second-hand goods in Japan. In fact, people had to pay to dispose of used items even if they were in good condition.
However, by the mid-1990s, with recession setting in, analysts were of the view that there could be a huge underlying demand for a forum where second hand items could be displayed, bought, and sold...
Yahoo Japan Auctions, though successful, did face its share of controversy. In one instance in 2006, more than 200 Yahoo Japan Auctions users did not receive jewelry items from an Osaka-based jeweler who listed on the Yahoo Auction site, even when they paid for them. Apparently, the jeweler had discontinued operations...
Exhibit I: Yahoo Japan - financial Trends
Exhibit II: Top Websites in Japan* - August 2007
Exhibit III: Yahoo's Acquisitions
Exhibit IV: Yahoo's Business Activities (as of 2007)
Exhibit V: Yahoo Financial Summary
Exhibit VI: Softbank - Business Segments as of 2007
Exhibit VII: Softbank - Financial Highlights
Exhibit VIII: Yahoo Japan's Strategy
Exhibit IX: Web Page of Yahoo Japan Auctions