Buying Behavior & Market Analysis Essay Example | Topics and Well Written Essays - 1250 words

Buying Behavior & Market Analysis - Essay ExampleIn this case, the company uses the ideal task of the lucre of despicable information to its benefit. This business model around eBay has gained a lot of success in the local American market. Moreover, the model has been taken to numerous foreign markets gaining a lot of success. Case in point, the model has been successful in the European markets in countries such as Germany, France, and England. However, replicating this success has proved to be a coarse challenge for eBay in its Asian markets. In effect, at that place has been a failure of the model by eBay in Korea and China while its operations in other(a) Asian markets experience slow growth. Therefore, this expose elucidates the factors contributing to eBays failure in establishing itself while using the global marketing concepts. The Korean marcher of eBay, earnings Auction, dominated the auction market over the internet in South Korea in 2004. In this case, the eBay subsi diary revenues accounted for a third of eBays revenues in the Asian market. However, a Korean upstart called Gmarket overtook Internet Auction in terms of the market overlap and consequently revenues earnings significantly dropped. It is noteworthy that eBays hotshot rival, Yahoo, held a 10% stake in the startup. Effectively, by the end of 2006, Metrix pointed out that the 17.2 million unique visitors in Gmarket surpassed the 17.1 million visitors for eBay (Ihlwan, 2006). On the other hand, Eachnets--the subsidiary unit of eBay in China--chief executive unexpectedly resigned. According to market analysts and researchers, the reason for the resignation was eBays loss of its top position in the Chinese internet auction market. In this case, Alibaba.coms Tao Bao ranked first while eBays Eachnet followed. It is important to note that, the chief rival, Yahoo, held 40% of Tao Baos venture. According to an agency, partly owned by the government, called China Internet Network Information Centre quasi, Tao Bao led the online auction market in China with a 67% share while eBays Eachnet held 29% of the market share (Mangalindan, 2006). One factor that eBay never considered was that, the global approach in which online auction firms offered products across nations was practical in instances that competition was limited. In this case then, since eBay controlled the Asian market prior to entry of its competitors, it never did enough timing to know when to change its auctioning strategy. In addition, being the preponderant player made eBay become more complacent. The complacency, critics claimed, was evidenced by eBays move in transferring its Chinese operations decision-making responsibilities to its headquarters in the United States aft(prenominal) acquiring Eachnet. In fact, critics say that this strategy caused a collapse in communication with some instances where it took weeks to correct typos on their website (Lou & Feng, 2010). Meanwhile, eBays competitors paid a ttention to grievances by eBays clients and vendors. Failure to time its entry into the Asian market, more so in Japan influenced heavily its Asian success. The companys move to substance the market five months after its rival Yahoo failed in its quest to establish itself as the leader in the Asian online auction market. In this case, there is the significant beneficial factor in establishing a foothold by a first-mover in the online auctio