E BAY in Asian market
Why does E Bay have problems in Asian markets
The Internet company eBay would seem to have realized the goal of a perfect market where buyers and sellers have access to perfect information about other buyers, sellers and merchandise. Because eBay charges a small fee relative to the price of the products and because the company does not maintain or manage any inventory of its own, it depends on large volume and low overheads in order to remain profitable.
Why does E Bay have trouble in Asian markets?
In the United States, E Bay and Yahoo have coexisted peacefully in the online auction business, but what is Yahoo doing so differently in the Asian markets that is giving them an intense lead on the market share in Asia.
In the battle for the Asian market for online auctions, Yahoo purchased a 10 percent share of G Market, an already well-established company that already had a huge reputation in Asian markets. This venture between Yahoo and G Market covered most of the popular South Korean e- commerce and auction sites cost Yahoo 60 million dollars versus the E Bay acquisition in 2001 of Internet Auction Company for 120 million dollars. Through better investing practices, Yahoo was able to corner more of the highly prized Asian market than E Bay.
Another deciding factor in E Bays trouble in Asian markets was the format that E Bay used versus G Markets format. Rather than the typical online auction that E Bay had used with much success in the United States, G Market site put less emphasis on the open auction format and went to a format that uses fixed prices with the option to negotiate with the seller on an exclusive basis. This format that G Market uses benefits the consumers in the fact that instead of waiting days for an auction style format to close, deals conclude immediately between the seller and the consumer. The E Bay format is also...