eBay in Japan
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Case Details:
Case Code : BSTR282
Case Length : 12 Pages
Period : 2000-2007
Pub Date : 2008
Teaching Note :Not Available
Organization : eBay
Industry : Internet & E-Commerce
Countries : Japan
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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.
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eBay Reenters Japan Contd...
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As a part of the agreement, the companies decided to start a
Japanese website, Sekaimon8. Apart from translating the names and details of the
items listed on eBay's US website into Japanese, the site would provide services
like overseas shipping and customs clearance. According to Hiroko Sato, analyst
at JP Morgan, Chase & Co, Tokyo, "the alliance will create a very attractive
service for U.S. and Japanese users as it allows them to purchase items
simultaneously in both countries."9
After several highly successful international ventures, eBay first entered Japan
in 2000.
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By then, Yahoo was already a well-established portal in the
Japanese market and its online auctions site, which had started a few months
before eBay's entry into Japan, had started tasting success. eBay found it
difficult to establish itself in the Japanese market.
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Some of its practices like charging transaction fees
and requiring the use of credit cards10
made the going tough for it. By 2002, it was able to garner only a 3
percent share of the Japanese online auctions market. eBay decided to
exit the country in 2002.
While exiting the country, Kevin Pursglove (Pursglove), spokesperson,
eBay, said, "We may come back to Japan sometime when factors are a
little more in our favor, but they are not at the current time."11
The news of eBay's reentry into the Japanese market in late 2007 was met
with mixed reactions... |
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