Source: Financial Times, December 12, 2006
Ebay tries to fix its strategy in China
Foreign internet companies struggle to replicate their international success in China.
Other foreign internet companies such as Google and Amazon have also struggled to replicate their international success in China.
MSN, which is far less popular in China than leading local portals, even announced this month that it would use paid search advertising services provided by Chinese rival Baidu.com – less than a year after Microsoft launched its own 'AdCenter' advertising system.
'A copy-and-paste approach to targeting China, based on attempting the same business model as in a company's home country, is unlikely to succeed,' says Jolyon Barker, head of media at the Deloitte consultancy.
Which explanations would you give to understand Ebays decision to close its main online auction website in China?
Ebay replaced it with a minority-invested venture to fend off competition from Chinese auction rivals led by Alibaba.com. How would you explain this strategic move to joint venture(s)?