Case ID: HKU701     Solution ID: 8567     Words: 662 Price $ 45

eBays Strategy in China Alliance or Acquisition Case Solution

Case Solution

In December 2006, eBay, Inc, a US organization that offers e-trade, e-installments and web correspondence benefits internationally, declared its arrangement to frame a joint endeavor with China-based online entry and remote administrator, TOM Online, that would give every organization 49% and 51% proprietorship, separately. This was eBay's third vital move in China, taking after its securing of a 33% stake in local partner Each Net in 2002 that denoted its entrance into the business, and a full procurement in 2003. In spite of the introductory great results, eBay had been losing piece of the pie to nearby opponent and Alibaba's completely claimed auxiliary TaoBao. By 2006, eBay had seen its piece of the pie drop from a high of 85% to a stunning 29%, while TaoBao's kept on expanding, coming to 60%. The joint endeavor was in this way an endeavor by eBay to spare it's coming up short Chinese operations. The move additionally mirrored the expanding challenges remote web organizations were confronting in China due to savage rivalry and a changing business environment. EBay trusted that it would profit by TOM On line's nearby learning and political associations. In any case, a few examiners addressed whether political associations alone were the answer and proposed that eBay concentrate on its item and administration offerings. How could eBay influence the joint dare to its achievement in China? What options did eBay have for improving its key position in the Chinese market?

Excel Calculations

Questions Covered

1.       Introduction

2.       The Options

3.       Market Reality and Problems

4.       Conclusion