Ebay Case Analysis Study Example | Topics and Well Written Essays - 750 words

Ebay Analysis - Case Study Example eBay offers a broad range of products, globally expanding and generating a community for all clients to join eBay. The potential rationale for eBay international expansion hinges on the desire to increase its: number of registered users, user activity, PayPal transactions, user gross merchandise volume, and number of listings. eBay’s global presence seeks to take advantage of the growing online shopping usage. Like the general industry, eBay’s business model is increasingly dependent on technology and expansion into international markets (Hitt, Ireland, and Robert 235). # 2. International arenas for eBay: France and Japan The CAGE Distance framework highlights cultural, administrative, Geographic, and economic differentials or distances between countries that ought to be addresses when coming up with international strategies. CAGE framework can also be employed to dissect patterns of trade, information, capital, and people flows. In terms of cultural distance, there is â€Å"wide† cultural distance owing to different languages, diverse ethnicities (absence of connective ethnic and social networks), diverse values, norms, and dispositions. Nevertheless, the problem of absence of trust is not prominent to the extent of holding eBay’s (Hitt, Ireland, and Robert 236). ... The factor on economic distance centers on aspects such as income/wealth disparities and differences on aspects such as cost/quality of financial resources, infrastructure, human resources, knowledge, or information. The internet has become an integral component in commerce allowing cross-border data flows, which also underpin global economic integration and international trade. Hence, Japan and France can still remain desirable markets for eBay. Moreover, Japan and France do not manifest any significant restriction on the internet by respective governments in a manner that minimizes the capability of businesses in employing internet as a place for international commerce. # 3. Alternative vehicles that eBay has used to pursue international expansion There are several components that can be cited as contributing to eBay’s strategic plan for growth. In its expansion efforts, eBay employs investment and acquisition strategy. In the international arena, companies usually encounter s strategic dilemma in choosing between global integration and national responsiveness. eBay is a very diverse entity and services that the company avail is appealing to individual customers, as well as large corporate customers. It is evident that eBay holds significant power within the online auction industry (Hitt, Ireland, and Robert 235). eBay’s corporate strategy centers on diversifying business to products offered, as well as customer base and global reach. eBay keeps on changing, adapting, and highlighting fresh ways to master its environment. eBay should rethink its strategy to ensure that it is capital efficient. #4. Whether eBay should acquire rival iBazar in France The acquisition of iBazar and entry into