MGT 658 Week 1 Discussion 3

MGT 658 Week 1 Discussion 3 | american-intercontinental-university

For my discussion board assignment, I choose to use a pretty reputable company we all know Ebay. Ebay is a US auction site that allows buyers to bid on merchandise online all across the world. In 1999 eBay began its attempt to expand into Japan which it officially launched in 2000. Poor marketing research did not allow the company to be as successful as it had hoped. The lack of redevising an effective strategy and purchasing plan that reflected traditions of the Japan culture who were not prone to having to enter their personal information online in order to purchase would lead the company to not being able to compare with its home market who allowed for them to be able to pay in cash upon delivery. In an article written by Nick Wingfield, he told us that " eBay doesn't break out revenue for its Japan site, but auction listings in Japan are currently between 20,000 and 25,000. In contrast, listings on eBay's U.S. site are now more than 6.8 million" (Wingfield,2002) which was partially due to its inability to adapt to the Japanese market whose buyers would prefer to buy new items versus the used items that they offered. In 2002 the company announced that they would be closing its market in Japan due to this reason with hopes to one day in the feature partner with Yahoo Japan who was able to effectively penetrate the market and is doing quite well. Due to lack of cultural knowledge and differences between the two countries it limited the ability of eBay being able to appeal to the Japanese consumer base ultimately leading to the failure of the company's attempt to successfully penetrate the Japan market the way it has in the US markets. They were unsuccessful in being able to apply strategic strategies in an effective manner by poor market research.