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TheInternationalBusinessStrategiesOfEbay ByShawn 2020 2 7 1 1 Whatisinternationalbusinessstrategy 2020 2 7 2 Definition referstoplansthatguidecommercialtransactionstakingplacebetweenentitiesindifferentcountries Internationalbusinessstrategy 2020 2 7 3 Basicconcepts Therearetwoapparentlycontradictorygoalsinthefirmswithforeignmarketorientation Ontheonehand toreducecostbyproductstandardizationand subsequently centralproductionatoptimallocationintheworld Ontheotherhand tocatertolocaldemandsforcustomizationbyproductdifferentiationandlocalizedmarketingmixandsoontendtoraisecost 2020 2 7 4 Fourinternationalbusinessstrategies 1 2 4 3 Transnationalstrategy Localizationstrategy Internationalstrategy Globalstandardizationstrategy PressuresforLocalResponsiveness PressuresforCostReductions 2020 2 7 5 Understanding Internationalstrategy Internationalstrategyisthedevelopmentstrategythatproductionandservicesoutofthemainland Twogoals Thegoalistostrengthencompetitivenessandenvironmentalsuitability Threetypes Thethreetypesaremainlandcenterstrategy multinationalcenterstrategyandglobalcenterstrategy Fourmodels Definition Thefourmodelsareestablishingoverseasfactory directexport emergingforeignenterpriseandOEMexport 2020 2 7 6 Understanding Localizationstrategy Definition Localizationstrategyisthestrategythataimedtointegrateintargetmarket Thegoal Thegoalistoadapttotheenvironmenttogainmoredevelopmentspace Thefactswhyimplementthestrategy Thefactsarethedifferencesbetweennations economicsandmarketinginfrastructure Generallocalizations Generallocalizationsarelocalizationofproduction marketingmode humanresourcesandresearchanddevelopment 2020 2 7 7 2 BasicInformationAbouteBay 2020 2 7 8 Tips Founded September3 1995 asAuctionWeb Headquarters SanJose California UnitedStates Founder PierreOmidyar Production E commerce onlineauctionhosting onlineshopping PayPal Skype Slogan TheWorld sOnlineMarketplace Revenue US 8 59billion 2015 eBaywasfoundedinCaliforniaonSeptember3 1995byFrench bornAmericancomputerprogrammerPierreOmidyaranditisoneoftheworld sbiggestonlinetradingplatform eBayprovidesauctionservicesautomaticallythatsellerslistgoodsforsellandbuyerssubmitanofferforwhattheyinterestedin 2020 2 7 9 ItemsMillionsofcollectibles decor appliances computers furnishings equipment domainnames vehicles andothermiscellaneousitemsarelisted bought orsolddailyoneBay In2006 eBaylauncheditsBusiness Industrialcategory breakingintotheindustrialsurplusbusiness Generally anythingcanbeauctionedonthesiteaslongasitisnotillegalanddoesnotviolatetheeBayProhibitedandRestrictedItemspolicy Servicesandintangiblescanbesold too Largeinternationalcompanies suchasIBM selltheirnewestproductsandofferservicesoneBayusingcompetitiveauctionsandfixed pricedstorefronts SeparateeBaysitessuchaseBayUSandeBayUKallowtheuserstotradeusingthelocalcurrency SoftwaredeveloperscancreateapplicationsthatintegratewitheBaythroughtheeBayAPIbyjoiningtheeBayDevelopersProgram InJune2005 thereweremorethan15 000membersintheeBayDevelopersProgram comprisingabroadrangeofcompaniescreatingsoftwareapplicationstosupporteBaybuyersandsellersaswellaseBayAffiliates 2020 2 7 10 2020 2 7 11 Inthepast theratingsystemofsellerratingwithremarkofnegative neutralorpositive Forsellers theycanrefuseaorderofabuyerwhoremarktoomuchnegativecomments Butthechancetoremarkisonlyonce Sobothbuyersandsellerswouldn tgivenegativecomment ThusmanypeoplecomplainedthateBaywasfilledwithcheating In2008 eBayimplementedasystemofsellerratingswithfourcategories Buyersareaskedtoratethesellerineachofthesecategorieswithascoreofonetofive withfivebeingthehighestrating Unliketheoverallfeedbackrating theseratingsareanonymous neithersellersnorotheruserslearnhowindividualbuyersratedtheseller Thelistingsofsellerswitharatingof4 3orbelowinanyofthefourratingcategoriesappearlowerinsearchresults PowerSellersarerequiredtohavescoresineachcategoryabove4 5 RatingSystem 2020 2 7 12 Profit eBaygeneratesrevenuebyacomplexsystemoffeesforservices listingproductfeatures andaFinalValueFeeforsalesproceedsbysellers AsofNovember2012 theU S basedeBcharges 0 10to 2 basedontheopeningorreserveprice asaninsertionfeeforabasicauction stylelistingwithoutanyadornments TheFinalValueFeeamountsto10 ofthetotalamountofthesale whichisthepriceoftheitemplusshippingcharges 28 Fixed pricelistingshaveaninsertionfeeof 0 30 andthefinalvaluefeevariesbasedoncategoryandtotalamountofthesale e g 13 forDVDs Moviesupto 50 AndeBayindifferentcountrieshasdifferentstandards 2020 2 7 13 3 StrategyAnalysis 2020 2 7 14 Internationalstrategy 1999 2000 2001 2002 2004 20 eBayenteredAustralianmarket eBayestablishedit swebsitesinCanada Austria GermanandFrance eBaymadeagreatdealofinvestmentinItaly Singapore Switzerland LatinAmerica NewZealand IrelandandKorea eBayacquiredTaiwan twtoenterTaiwanmarket OnOctoberthisyear PayPalbecameawhollyownedsubsidiaryofeBay eBayacquiredBinIndia eBay sbusinessstrategyincludesinternationalstrategy eBayhasalreadyexpandedtoovertwodozencountries includingChinaandIndia 2020 2 7 15 LocalizationStrategy OnJuly11 2002 eBaycost 150 000 000foracquiringthebiggestelectroniccommercecompanythattimecalledEachNetinChinatoenterChinamarket ThenTheyestablishedaauctionwebsitecalled eBayEachNet Ebayinchina 2020 2 7 16 WhenTaobaowasfoundedinMay 2003 eBayhasoccupied2 3Chinamarketatthattime ButthemarketshareofTaobaowascontinuallygoingupwhileeBaywascontinuallydropping In2005 TaobaohascaughtupwitheBay Finally themarketshareofTaobaohasreachedover80 ofChinamarketandeBaysoldoutthecompanyandexitedChinamarket Thecompetitionbetweentwolegends 2020 2 7 17 Why FreevsCharge ItisknowntoallthatbothmakingadealandsettingupashoparefreeinTaobaowhileeBaychargedreserveprice insertionfeeandfinalvaluefee ButeBayignoredthefactthatChinesepeoplealwayspreferfreethings AlipayvsPaypa
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