eBay and Asia; Lessons Learned
BUS410- International Business
Dr. David M. Hunt
January 16, 2009
I believe that eBay has failed in the Asian Market for many reasons. One of the most important reasons would have to be that eBay really did not do any research into the Asian heritage, culture or Government. eBay was under the impression that the could just show up in China thinking that since they where such a leading brand in the USA that the eBay image alone would carry them. Once again it’s a classic example of improper planning and research. Research has proven that Chinese consumers like to buy from people and brands that they can “trust”. Early lessons in life have taught us all that trust has to be earned. The USA much less eBay has not established that “trust” or customer loyalty that the Chinese people are looking for. eBay did not establish that trust or provide secure customer service for on-line transactions that could lead to disputes or fraudulent transactions. Due to Chinas weak legal system the consumers have to be cautious with these types of transactions.
eBay executives did not understand that things in China take time to happen. eBay executives are used to getting results quick due the success in the United States but failed to realize that they would have to spend some quality time working with the government on finding managers and settling copyright issues. eBays home office in San Jose directed from afar instead of trusting the executives in China to make critical decisions and introduce ideas that would succeed in the China market. You have to trust your people that are working in the area of responsibility and living and function in that arena if you are going to succeed.
As with any business we are in the business to make a profit but I really think that eBay went into the situation a little hasty and maybe with a spot of greed. If you are going to come to my...