ebay

EBAYS STRATEGY IN CHINA-ACQUISITION OR ALLIANCE Q1.Critically throwaway EBays choice of market entry strategy for chinaware, guide both the advantages and disadvantages of its acquisition strategy. Ans 1.Background.The strategic alliance amongst EachNet and eBay was an diachronic decision based on chinawares opinionated economic growth. Western interest in mainland mainland Chinas internet sector was apparent owing to Chinas manufacturing led boom and gradual integration into the global affair community. EachNet has recruited 3.5 one thousand thousand registered users and was an ideal partner to further unify its atomic number 82 role in the countrys burgeoning e-commerce industry. Although the development of the Internet in China had skyrocketed, calling orientated portals had had a difficult metre generating revenue. further eBay had made success with its auction model in the join States and had been expanding abroad. In January eBay reported a fourth- quarter net meshing of US$25.9 million and expected revenue for the first half(a) of 2002 to be among US$490 and US$510 million. Advantages to ebay-EachNet The deal with EachNet was an principal(prenominal) step forward in eBays strategy to build a truly global marketplace. worldwide expansion would be an important driver of ebays growth.

250 million strong emerging substance class would offer prominent potential. E-commerce revenue in China was expected to grow to the highest degree 12 fold to more(prenominal) than US$16 billion all all over the next lead to four years. Statistics from the China National ne t income Information concenter showed that ! Chinas Internet users had topped 33.7 million by the end of stretch forth year, up 49.8 per cent over the same period run short year. Advantages of the acquisition. Executed in a two stage process- minority stake followed by acquisition would be a effective strategy trance testing waters in a new market. Founders of Eachnet were jillion Whitmans alums at Harvard- good in-person relationships EachNet had good business knowledge and strong domestic...If you want to spoil a just essay, order it on our website: OrderCustomPaper.com

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