...International Business the Globalization eBay Inc. is an American multinational internet consumer-to-consumer corporation, headquartered in San Jose, California. It was founded in 1995, and became a notable success story of the dot-com bubble; it is now a multi-billion dollar business with operations localized in over thirty countries. The company manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. eBay created an efficient distribution system that demanded virtually little supervision. Sellers paid eBay for the opportunity to design, set up, monitor, and supervise their particular auctions while buyers used eBay's software to search for products and place bids. After the auction clock ran out, the seller contacted the winning bidder to negotiate payment and shipping terms. For this matchmaking service, eBay charges between 7 and 18 percent of the closing auction price. In 1999, net revenues topped $225 million. By 2006, revenues grew to $6 billion with net income of $1.1 billion. The company projects revenue near $7.5 billion in 2007. To support interaction in the eBay community by providing a useful online platform to value-oriented buyers and sellers; to uphold the principles of trust and safety, guaranteeing low fraud losses and high transaction protection to its community; and to focus on market efficiency by delivering state-of-the-art information technology...
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...eBay Inc. is an American multinational internet consumer-to-consumer corporation, headquartered in San Jose, California. It was founded in 1995, and became a notable success story of the dot-com bubble; it is now a multi-billion dollar business with operations localized in over thirty countries. The company manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. Case: The Globalization of eBay International Business the Globalization of eBay Case study I. Case Background eBay Inc. is an American multinational internet consumer-to-consumer corporation, headquartered in San Jose, California. It was founded in 1995, and became a notable success story of the dot-com bubble; it is now a multi-billion dollar business with operations localized in over thirty countries. The company manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. (Wikipedia) Operations eBay created an efficient distribution system that demanded virtually little supervision. Sellers paid eBay for the opportunity to design, set up, monitor, and supervise their particular auctions while buyers used eBay's software to search for products and place bids. After the auction clock ran out, the seller contacted the winning bidder to negotiate payment and shipping terms. For this matchmaking service, eBay charges between...
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...the operations of eBay. However, there are some countries that have put up policies that are affecting the various operations of the firm. The effect of globalization must also be acknowledged as having a great influence on the various operations of the firm. The effects of globalization will lead to the continued expansion of the firm. Globalization has led to the growth of international commerce between people who are located in different countries. The effect of this trend is an increase in the markets that the firm serves. Apart from the effect of globalization, the operations of eBay are also affected by the different government policies especially those that govern e-commerce (Klink E. & Klink S., 2005). The company is required to comply with various legal requirements within countries of operation, thus creating a major challenge on the company`s operations. The policies have come through varied regulatory instruments which are geared towards making the various activities that are carried out online to be safe and secure. This will have an effect of increasing the operating costs of the varied online businesses. eBay Inc. is an American multinational corporation that was founded in 1995 and it has continued to grow its revenues in the online auction industry. The company currently operates in more than thirty countries across the world. The net income of the firm stood at $1.8 billion with revenue levels of $9.15 billion in 2010 (Feng, 2011). eBay operates in a very...
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...4.1. Political eBay is a company, which is not very much influenced by political developments. Some countries might put some policies affecting them in place and the on-going globalization might have effects on them as well. Globalization Globalization is an issue that will positively affect eBay’s business. They will be able to expand internationally and find new markets. Government Policies Some government policies in favor and against interests might be introduced. When looking in the past though, national governments have left e-commerce alone. Regulatory bodies and processes Regulations could be passed making sites ensure a certain level of security in online shopping, increasing customer security but also costs for online businesses. 4.2. Economic Interest and Exchange Rates A future instability in Exchange rates would have heavy effects on eBay. Interest rates would also be affected by the instability and therefore affect eBay in bad ways. Economy Situation and trends Economic situations of course have a direct impact on eBay’s good performance. Another Wall Street crash would probably devastating effects on eBay while a second boom e-commerce would make eBay’s profit rocket. Taxation Taxation might affect eBay in two ways. First of all higher taxing of their profit might be possible. Secondly and more importantly if taxation for every sale in online auction houses would be introduced this would seriously damage eBay. 4.3. Social Lifestyle...
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...Political eBay is a company, which is not very much influenced by political developments. Some countries might put some policies affecting them in place and the on-going globalization might have effects on them as well. Globalization Globalization is an issue that will positively affect eBay’s business. They will be able to expand internationally and find new markets. Government Policies Some government policies in favor and against interests might be introduced. When looking in the past though, national governments have left e-commerce alone. Regulatory bodies and processes Regulations could be passed making sites ensure a certain level of security in online shopping, increasing customer security but also costs for online businesses. 4.2. Economic Interest and Exchange Rates A future instability in Exchange rates would have heavy effects on eBay. Interest rates would also be affected by the instability and therefore affect eBay in bad ways. Economy Situation and trends Economic situations of course have a direct impact on eBay’s good performance. Another Wall Street crash would probably devastating effects on eBay while a second boom e-commerce would make eBay’s profit rocket. Taxation Taxation might affect eBay in two ways. First of all higher taxing of their profit might be possible. Secondly and more importantly if taxation for every sale in online auction houses would be introduced this would seriously damage eBay. 4.3. Social...
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...The Challenges Facing eBay in 2008: Abstract EBay in 2008 announced that its long-time president and CEO, Meg Whitman was to retire and pass on her responsibility to a new president and CEO, John Donahue. After the CEO transition, Donahue faced several significant challenges, including much slower growth in eBay's core online auction business, what to do to make the recent acquisition of Skype profitable, declining numbers of auction customers (chiefly due to increasing competition from Amazon's then new and popular auction site), and weaknesses in key economies across the globe. Competitive advantage is important role in developing sustain strategies. Using porter’s five forces, this paper analyses the five factors which affect eBay strategies. These factors are major in helping the company to identify the key issues and ways of coping with complexity and change. To determine how profitable and the position of eBay in the current market, a strategic group map, weighted competitive strength assessment and financial ratios analysis were conducted. The three analyses reveal that the company is still in good standing even though there is immerse competition which results in profit margin declines. Finally this analysis looks into problems that top management of eBay is facing. With acquisition of other companies that support the company’s core business and adjusting the current strategy to encompass the company’s globalization efforts in good time the company...
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...sell their own personal items to anyone with internet access at any time. eBay is full of much strength such as their ability to globalize their brand. This is also one of their main weaknesses. Since eBay is an online business, anyone with internet can access the website. While they have the potential to reach out to everyone, not everyone uses the internet. One of the issues eBay faces is that the internet usage in Asia is very low especially considering over half the population resides there. E commerce was growing everywhere which definitely helps eBay’s business. One of eBay’s great accomplishments is their ability to acquire several other successful businesses. They don’t just take over random businesses because they can; they acquire businesses that can help them out with their own business. For example, PayPal goes hand in hand with the type of business eBay runs. It gives users a more secure way to use their website which consumers definitely appreciate. Along with their feedback forum which allows consumers to voice their opinions, the fact that both sides (buys and sellers) feed off one another and cause the popularity of the other side to rise really makes consumers feel like they are a part of the business. This is part of what makes eBay such a great success. Although they have their share of challenges with globalization and competition, they do so many things right. The idea of eBay originated from French born Pierre Omidyar, a computer science graduate from...
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...given that in the U.S. Yahoo and eBay have forged An alliance to protect their dominance in the $12.5 billion online advertising market against Google. But in Asia, the eBay-Yahoo rivalry is ferocious (BusinessWeek.com, 5/26/06, Tech Titans Take Sides). Yes, Yahoo is a big reason that E-bay globalization in the Asian market isn’t successful. Though yahoo has some responsibility in EBAY unsuccessful Asian Market, EBay has lack the ability to conform its business model to the Asian market. EBay inability to tailor its product to the Asian Market has also been a major reason for their failure in the Asian Market. In major markets like Japan, Korea and China, Yahoo subsidiary have outperformed EBay. EBay has a simple business model of drawing revenue from passing information between seller and buyer, which require no necessity to have inventory or ship goods. This business model was embraced by foreign markets including UK, France, Germany and surely became a leader in e-commerce in the US. This success didn’t translate to the Asian Market. The reason is due to neglect of the four P’s concept, adoption, standardization, and entry time and entry market. EBay begin its entry into the Asian market in Japan, but missed their ideal time to enter the market. Yahoo had entered the Japan market six months prior to EBay. This allowed yahoo enough time to accumulate enough market power to force EBay out. Not only did EBay enter the market late, it did...
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...Is Globalization Flattening The World? Task 1: Many millions of years ago the earth was one continent named Pangaea but slowly drifted apart. Through the concept of globalization it has once again become connected. The flattening of the world is a very debated theory. In the 21st century aka the Information age or Computer age seems to support the planar status of the earth. Its characterized by knowledge based society imbued with a high-tech global economy. This is what a famous New York Times columnist Thomas Friedman deems as Flattening 3.0. Phase 3.0 is distinguished through the globalization of individual. Flattening 1.0 (1400 – 1800) was based on mostly on states globalizing, then 2.0 (1800 – 2000) was corporations. IT is prevalent factor in the process of globalization. With computer infrastructure growing seemingly over night access to information and other people followed tail. The dot com bubble spanned from 1997 to 2000 with it ending with NASDAQ stocks peaking at 5,132.52. This internet boom was started by the advent of the web and Mosaic browser in 1993. Hyper Text Markup Language was created by Tim Bernes-Lee for writing web pages and supported linking users from one page to another. This web programming language real only took off when Netscape, a US computer service company, made it user friendly. The internet ushered in new age of commerce. Anyone no matter where they are, could access other markets across the globe with a few mouse clicks. The...
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...eBay was launched in 1995 as the first online auction by Pierre Omidyar with the intention of creating a person-to-person trading community based on a democratized, efficient market where everyone could have equal access through the same medium, the internet. The name eBay stood for “electronic Bay area” coined because Pierre’s initial concept was to attract neighbors and other interested San Francisco Bay area residents to the site to buy and sell items of mutual interest. eBay.com provided a venue for online sellers to auction or retail a wide variety of products ranging from computer parts, videos, books, movies, automotives and real estate to buyers from different locations. It brings together buyers and sellers every day on a local, national and international basis through a range of websites. It provides online marketplace for the sale of goods and services, as well as other online commerce, or ecommerce, platforms and online payment solutions to a diverse community of individuals and businesses. Effectively, eBay created a meeting place or community where different sellers and buyers can meet, exchange, trade and make business transactions with each other. The said virtual community marketplace concept destroys the physical barriers of time and geography in real world marketplaces. eBay’s business model is based not only on providing the infrastructure for the said community but also maintaining the trust and safety programs that ensured the integrity of the trading community...
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...From an analytical prospective, explain why do you think PayPal has been so successful throughout the world? PayPal had become the largest, faster and secure online payment system. It is founded in the year 1998 that provided services of transfer money from one another via internet. It started to provide internet payment services in 1999. At first PayPal named as Confinity. In 2001, the name had been changed from Confinity to PayPal. Unluckily, in 2002, eBay successes bought PayPal with US $ 1.5 million. Now, PayPal can said as successful online payment system which recognised by everyone around the world. It is because PayPal have more than 132 million active accounts and operates in 193 worldwide markets. Also, PayPal providing 26 currencies around the world that enabling customers to send, receive and hold funds. PayPal a successful globalization services handled around 8 million of payment every day. In 2012, PayPal which is under eBay organization had contributed 40% of eBay Inc’s revenues. (PayPal, n.d.) PayPal can be said as the leader of secure and convenience online service. It is because PayPal have many year experiences in this field and cooperate with many partners for survival. (Paypal Introduction, n.d.) To sign up an account of PayPal is very easy and fast its only takes few minutes. Customers must provide a valid debit or credit cards number and linked it with own account. PayPal not only a platform for transferring money to sellers, it also can be used...
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...Streamlined text in eleven chapters, with particular focus on global strategic positioning, entry strategies and alliances, effective cross-cultural understanding and management, and develop- ing and retaining an effective global management cadre. The seventh edition has been revised to reflect current research, current events and global developments, and includes company examples from the popular press. In Chapter 1, we introduce trends and developments facing international managers and then expand those topics in the context of the subsequent chapters. For example, we discuss developments in globalization and its growing nationalist backlash— in particular resulting from the global financial crisis. We discuss the effects on global business of the rapidly growing economies of China and India and other emerging economies such as those in Africa, and the expansion of the EU; the globalization of human capital; and the esca- lating effects of Information Technology and the global spread of e-business. We follow these trends and their effects on the role of the international manager throughout the book. For exam- ple, in Chapter 6 we focus further on strategies for emerging markets, while also dealing with changing strategies to respond to economic decline around the world and an increasing level of nationalism in some industries; we have a section on “Using E-Business for Global Expansion” as well as discussing “born global” companies. In Chapter 7, we added a section on strategies ...
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...Globalization What is globalization on our economy? Economic globalization is the increasing economic integration and interdependence of national, regional and local economies across the world through an intensification of cross-border movement of goods, services, technologies and capital. Our econonmy has an increasing rate of which it is using overseas worker to replace local jobs for American workers. The economy is changing fast. What has opened up the market to the globalization idea? Companies realize that they can find goods, services, technologies and capital at a much better value. As a comparison, an engineer in the United States, with a bachelor’s degree with a salary of $60,000 a year can be replaced by an engineer in India, with a master’s degree in engineering and happily accept a salary of $15,000 a year to do the same job. Sense the use of the internet and fibrotic phone service lines came out in the early 1990’s, the ability of communicating with the rest of the world became much more available. The first web browser that became popular with globalization was Netscape. In the early 1990’s, the big (.com) companies layed fibrotic cables across the world. These cables are still used today and have plenty of room for advancement and capacity. With the new technology using the internet, companies and users can exchange currency across the world securely with the company PayPal. I use PayPal regularly with my eBay store. I have sold many items across the world...
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...Assess how these segments affect the corporation you chose and the industry in which it operates. EBay Inc. Is one of the leading internet companies in the world. Founded in 1995 by French Iranian Pierre Omidyar, eBay is employing more than 15500 people while generating total revenue of 11.65 billion dollars as of 2011 (eBay Inc 2011 Results). The company was founded in San Jose, California with a vision of connecting people rather then sells them goods. The company has now about a billion registered users and is the most popular shopping site on the Internet. EBay’s mission is to provide a global segment platform where practically anyone can trade practically anything. It features a variety of international sites, specialty sites, 50,000 categories of merchandise, and services that aim to provide users with the necessary tools for efficient online trading in both auction style as well as fixed price formats. Recently eBay added a Want It Now and Best Offer format providing new ways for shoppers to find and buy what they want on the website. Europe, Asia and cross-border trade are major areas of growth for eBay and an immense source of revenue. The firm offers localized sites in 24 countries. On any given day, millions of items are listed on eBay in thousands of categories. People from all over the world buy and sell on eBay (Hellriegel, D., & Slocum). EBay also acquired a number of other companies. These acquisitions include the following: • PayPal. This...
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...the Internet constantly publicized however, the inherent disadvantages brought forth with this technology are dangerously overlooked, much to the advantage of the parties who are the source of these issues. With the necessary funding, governments can and have been known to conduct surveillance on their citizens via the Internet (Geer, 92-93). The Internet has also allowed nations to conduct espionage on each other, becoming a serious national security risk as a new platform over which warfare can be carried out has been created (Solis, 1-3). Although businesses can leverage the Internet to achieve an incredibly high degree of globalization, the integration of Internet technology into businesses has opened them up to financially driven cyber attacks, resulting in net losses of millions each year ("Cybercrime Becoming More Professional." 3). The globalization brought with the Internet is not selective; it is inherent. Gritzalis and Gurvirender argue that a massive underground economy has birthed where criminals are achieving new levels of sophistication and organization, optimizing their gains and deepening the losses of society (1-2). This paper will explore the argument proposed by Gritzalis and Gurvirender. Criminals who have adapted to the cybercrime market are becoming increasingly complex in their methods. The rise of virtual marketplaces for illegal goods and services has proved effective in thwarting law enforcement agencies (Tor Project, 2011). The underground economy...
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