eBay’s Globalization Strategy

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eBay’s Globalization Strategy

eBay was founded by Pierre Omidyar and Jeff Skoll in May 1996. Their

headquarters were in San Jose, California in the midst of the dot-com

era. The company idea initially began as “Auction Web, which Omidyar

launched in September 1995. The idea was to develop an open market

place that was available for all members of the community to discuss,

compare, and trade computer items as well as collectibles. The idea

took off, reaching thousands of registered users in just a few years.

By January 1997, AuctionWeb could not handle the large load of page

views – bandwidth. Omidyar solved this problem by writing the code

for a new system: ebay (Echo Bay Technologies). In September 1997,

AuctionWeb was shut down and the eBay platform was opened. The ebay

company vision: “To create the world’s largest global trading

community and to help people trade practically anything on earth.”

eBay had 2.4 M visitors in 8/98, quadrupling in size to 8.4 M visitors

in 4/01. Listings on their site began at 500 in 1998 and grew to just

under 5 M in 2001. What started out as an auction site for computer

and collectible items matured to include toys, pottery, automobiles,

furniture, to movies, etc. Omidyar and Skoll achieved their, “trade

anything” goal much sooner than expected.

In 1998, eBay went public. Given the sufficient number of funds

received from the IPO, eBay launched strategic initiatives aimed at

six specific objectives.

1) Grow the eBay community and strengthen the brand (attract and

maintain vitality)

2) Broaden the company’s trading platform by growing existing product

categories, promoting new product categories, and offering services

for specific regions

3) Fost...

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...ever, the

2004 estimates are more closely aligned with 2003 Actuals. This

suggests that population growth was not as high as expected.

Therefore, our projections took that into consideration and usage

expectations were decreased. [7]

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[1] Strategic Management Concepts and Cases, Thompson and Strickland,

12th Edition, P. C-263

[2] Strategic Marketing Problems, Kerin and Peterson, 10th Edition, P.

97

[3] Strategic Marketing Problems, Kerin and Peterson, 10th Edition, P.

89

[4] Strategic Marketing Problems, Kerin and Peterson, 10th Edition, P.

96

[5] Strategic Marketing Problems, Kerin and Peterson, 10th Edition, P.

103

[6] Strategic Marketing Problems, Kerin and Peterson, 10th Edition, P.

101

[7] Population Reference Bureau, http://www.prb.org/

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