2016
DOI: 10.19044/esj.2016.v12n1p202
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Internationalization: Choosing The Right Entry Mode: Lessons From Ebay’s Strategy In China

Abstract: This paper considers the motivations for businesses to expand to other countries using the entry of eBay into China as a case study. It observed that eBay adopted the wrong entry mode by acquiring 100 percent of EachNet. The company would have performed better if it had adopted the joint venture approach with minority stake as it later did with Tom Online or if it had only retained minority stake, as was the case when it acquired 33 percent of EachNet. It was discovered that the various entry modes have their … Show more

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Cited by 3 publications
(2 citation statements)
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“…This is for purposes of enhancing their financial performance among other objectives. Ofili (2016) in an investigation of internationalization and entry modes into new markets found out about 75% of European companies expanded to new markets within the EU for purposes of marketing products and services in the bid to obtain more returns overseas. In some instances, companies expanded for purposes of gaining market shares in the new market as well as mitigating the challenges related to increased competition in domestic markets.…”
Section: Introductionmentioning
confidence: 99%
“…This is for purposes of enhancing their financial performance among other objectives. Ofili (2016) in an investigation of internationalization and entry modes into new markets found out about 75% of European companies expanded to new markets within the EU for purposes of marketing products and services in the bid to obtain more returns overseas. In some instances, companies expanded for purposes of gaining market shares in the new market as well as mitigating the challenges related to increased competition in domestic markets.…”
Section: Introductionmentioning
confidence: 99%
“…Regrettably, expansion does not always take place easily. According to Ofili (2016) in an investigation of internationalization and entry modes into new markets found out about 75% of European companies expanded to new markets within the EU for purposes of marketing products and services in the bid to obtain more returns overseas. In some instances, companies expanded for purposes of gaining market shares in the new market as well as mitigating the challenges related with increased competition in domestic markets.…”
Section: Introductionmentioning
confidence: 99%