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With the evolving world of internet use in carrying out both social and economic businesses, E-bay is not exclusion of this. E-bay has remained part of history that is related to the internet. Global networking has improved greatly with the use of this technology, as it has been helping in progressive development of the states and countries that are using it with the right application system.
The system operates by the simple transfer of information from the buyer to the seller and vice-versa. Therefore, the procedure is much simpler since there is no physical movement of goods by the use of transport materials like the ship. Although this inventory was well received and embraced by foreign markets like Germany, UK and France, E-bay encountered problems in Asia. This paper will give the reasons why the E-bay [url=http://www.rtnagel.com/louboutin.php]louboutin pas cher[/url] had problems in the Asian markets and how they can manage the problems .
E-Bay Problems in Asian Market
The Yahoo Company made its way forward in Asia as E-bay lagged behind going through Japan first. This meant that the most ideal time was missed out as it was launched into Asia six months after Yahoo. Therefore, Yahoo gained dominance during this period and created a market power that threatened E-bay's survival in Asia. Although the late market entry was a major issue, E-bay's Company was eager to grow fast. As a result they started of by charging a commission of 5%, which was not well received due to the already existing Yahoo Company with more affordable rates. Their rates encountered resistance from the market and as a result, E-bay's entry into the Asian market became a problem.
E-bay venture into the Asian market was not strategic. This is because, it's target population audience was very inappropriate. The company did not embrace sensitive issues like cultural practices of the Asian population. The countries in Asia like china have differing cultural practices from the Japanese. These two different groups have different brand preferences. For example, naming a product or brand in a Chinese manner like TaoBao which is the most predominant over [url=http://www.maximoupgrade.com/hot.php]hollister france[/url] E-bay would have made it more successful. This is because; customers in most cases will go for the familiar brands other than the non-familiar brands .
When E-bay reached Japan, they were to adapt the banking deposit and cash delivery system of the country. The company decision to continue with the method from the other successful regions ruined the company's growth. E-bay even tried to do away with the Japan system of using payments through credit cards. Therefore, E-bay could not be well received .
The overconfidence from the success of this company was overwhelming. This is because, since the company had been very successful in the US and Europe, they had overconfidence that it could equally work the same way in Asia. Therefore, the company did less research on the preferences of the markets in Asia .
Price policy is another major reason for the flop of E-bay in Asia. This is because; most of the market population prefer to pay for low cost services other than the high cost services. The charges for the services that E-bay provided were so many that most individual would not opt for the company's products. Instead, they would have even given free services so that they can reach where the other companies were and even do much better.
The management of the E-bay company was also a major reason of the problems that it encountered during its trial of penetration into the Asian market. The local management did not adhere strictly to the order that came from the top management, as much as the senior manager was well informed .
Managing Market entry problems
E-bay had to [url=http://www.davidhabchy.com]barbour sale[/url] think in a strategic way in order to deal with the problems it had previously encountered. The most basic strategy was to correct the past mistakes through incorporation of new measures. Measures like adopting the local way of handling markets was the main priority. More to this, it was also important that they consider the most preferred brands that were familiar to the Asian market. The management system was also an area to be considered. Since proper governance and management of the company meant success, then they had to enforce rules that made the [url=http://www.vivid-host.com/barbour.htm]www.vivid-host.com/barbour.htm[/url] management's work easier so that there was adherence of orders from the top.
They also discovered that by offering their services at a lower rate would be well receive other than overcharging and yet they had not created any stable markets with the Asian countries. As a result, they offered services that were more affordable to the market and this also acted as a way of dealing with their rivals. Therefore, the main way of managing the market entry problems was through the adoption of the culture in Asia.
What are some of the decision [url=http://www.thehygienerevolution.com/barbour.php]barbour paris[/url] factors that Starbucks Assesses?
One of the decision factors that starbucks is involved in assessing is the rivalry that may exist between firms that are already existing. The established companies are the key competitors with those that are interested in producing the substitute product. The new coffee products from the new entrants create rivalry force hence enhancing competition. Therefore, the big established companies have to work extremely hard than starbucks for a good profit margin. Competition from the other beverage company like tea and soft drinks was also part of starbucks' assessment on how it would venture into the new market .
Starbucks also had to assess the competition from the substitute products of coffee. The key threats to the coffee industry in china and US could have been from the soft drinks company of coca-cola and Pepsi. This is because [url=http://www.achbanker.com/home.php]hollister[/url] these products have caffeine which is quite similar to coffee; hence starbucks had to assess how to penetrate the coffee industry before making any decision. They had to look for ways through [url=http://www.rtnagel.com/airjordan.php]jordan pas cher[/url] which they would be able to out do the existing substitute products.
The customer's ability to bargain on the prices was also an area for starbucks to assess keenly. The reception of the products from US would not be the same in China. The [url=http://www.1855sacramento.com/peuterey.php]peuterey[/url] population in china could be more of bargainers as compared to US since the Chinese preferred less costly products as opposed to US. As a result, the bargaining power can easily force down the prices. More so, the power to bargain by the suppliers could also be a reason to raise the prices of [url=http://www.1855sacramento.com/moncler.php]moncler sito ufficiale[/url] the coffee beans, Arabica. Therefore, the supplier of coffee to the company was a key area to assess since they affected the sales of coffee; the higher the prices of coffee beans meant the higher the price of coffee .
Strategic Choices
Some of the strategic choices that starbucks made include maximizing the end profits by having a capitalistic society, so that it is a pure monopoly. Due to this, they can end up being the sole providers of a certain product in a particular region. The [url=http://www.vivid-host.com/barbour.htm]barbour uk[/url] choice of the suppliers and buyers is also very important for profit maximization. This is because, they influence the prices of coffee hence, it is important that the coffee company buys from suppliers [url=http://www.davidhabchy.com]barbour outlet[/url] with the lowest rates and venture into an economy which will afford the prices it has set. The demography also influences the sales of coffee. For example, an educated age group will consume more coffee than the non-educated group. This is because they know the importance of the caffeine that is found in coffee .
Downsizing in the USA has helped to reduce the costs that are used in operation and has improved the efficiency of the starbucks company in China and other states. This is because; the costs incurred are covered by the marginal profits of the company. Therefore, it is much easier for the coffee companies in china to operate and sustain the costs for operation. With the achievement of sustainability, the markets in the industry will be readily available. More so, there is reliable supply of products and the consumers who are the customers are willing to buy coffee products. As a result, the global economy in china has grown due to the costs of operation being reduced. With reduced [url=http://www.sandvikfw.net/shopuk.php]hollister sale[/url] cost of operation, it means the companies mainly make profits other than going at losses. Hence, downsizing in USA has aided in the global growth of the china and other states .

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