eBay & Yahoo! in Japan: From Competition to Collaboration

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Case Details:

Case Code : BSTR312
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

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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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"In the Japanese e-auction game, eBay has been thoroughly trounced by Yahoo Japan. In fact, the contest isn't even close. Yahoo Japan--the country's largest portal--has 95% of the online-auction market, where last year $1.6 billion worth of goods were traded. By contrast, eBay Japan--whose only business is auctions and whose parent dominates online auctions in the U.S.--has a measly 3% of the Japanese market."1

- BusinessWeek2, in 2001.

"A new partnership between eBay and Yahoo Japan returns the online auctioneer to a country where Yahoo dominates the Internet landscape. Five years ago, eBay left Japan, unable to breach Yahoo's stranglehold on the national Internet user community. The return of eBay to Japan via an agreement with Yahoo fills in a gap in eBay's international business."3

- WebProNews4, in 2007.

eBay Joins Hands with Yahoo! in Japan

In December 2007, eBay Inc. (eBay), the US-based online auction company, announced its reentry into Japan, through an agreement with US-based Internet services company, Yahoo! Inc.5 (Yahoo). eBay and Yahoo agreed to link their auction sites to facilitate cross-border bidding.

This would enable users of Yahoo Auctions Japan to bid for items listed on eBay's US site using their Yahoo Japan ID, and eBay users in the US to buy items auctioned on Yahoo Japan using their eBay ID.

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eBay & Yahoo! in Japan: From Competition to Collaboration - Next Page>>

1] Ken Belson, Rob Hof and Ben Elgin, "How Yahoo! Japan Beat eBay at its Own Game,"www.businessweek.com, June 4, 2001.
2] BusinessWeek is a leading business magazine published by McGraw-Hill.
3] David A. Utter, "Humbled eBay Joins Yahoo in Japan,"www.webpronews.com, December 4, 2007.
4] WebProNews is a provider of information on several topics in web design and development.
5] Yahoo! Inc., is a leading Internet services company headquartered in Sunnyvale, California, USA. In 2007, its revenues were at US$ 6.7 billion.

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