Since 2001E-Bay has tried to globalize and expand its online business in the Asian market, and have failed each time. The online company failed, because they failed to do their research on the foreign market that they were about to enter. E-Bay didn’t get to know their competition, and entered the market without knowing what they were getting into. The company should have found out what worked in the local market, and what made the local competition so successful. The company failed to learn their consumers, they should have found out their consumers likes and dislikes were what the consumers were willing to spend money on, and what they were not willing to spend money on. These critical mistakes made E-Bay unmarketable to the Asian economy, and would eventually lead to EBay’s failure in the Asian market.
I will prove why E-Bay failed in the Asian market, by discussing the mistakes the company made in the beginning of their campaign, that left the Chinese consumers not trusting the company, and only wanting to do business with their local market, and the companies they trusted.
E-Baby made a crucial mistake, when the company didn’t take the time to get to know their competition; this made it impossible for the company to compete with local competitor Taobao. Taobao is the local online competition that offers services just like E-bay, but only their services catered more to the local market. Taobao offered free basic services to sellers, while E-Bay initially charged listing fees, as it did in the United States, and Europe. Many critics believe that Chinese consumers will always choose the free or low cost option unless the product is tangible. These mistakes could have been avoided if E-Bay would have taken a little ...