Ebay & Yahoo

8/4/2019 Ebay & Yahoo

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From Competition to Collaboration

Presented By:-

Akanksha AgrawalRicha MaheshwariRohit AroraRomani GoyalSharad SharmaUdit Goyal


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Introduction Yahoo was founded by two Stanford University Ph.D. students, Jerry

Yang (Yang) and David Filo (Filo), in 1994 in Sunnyvale, California,

USA.

EBay was founded by Pierre Omidyar (Omidyar), a software

programmer, in 1995 as AuctionWeb. eBay was incorporated in May

1996

The case discusses the Japanese ventures of eBay and Yahoo!

Auctions (Yahoo).

Yahoo Auctions, which was launched in Japan in 1999, tasted

unprecedented success.


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Cont

US-based online auctioneer, eBay entered Japan in 2000, after

several successful international ventures but chose to exit

Japan in 2002.

In December 2007,eBay Inc.(eBay),announced its reentry into

Japan, through an agreement with US-based Internet services

company, Yahoo! Inc.

This is done to facilitate cross-border bidding.


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Cont

Entered Latin America market in Oct 2001

Enterd Taiwan in 2002 by acquiring Neocom Tech Co.

Entered China in 2002 by acquiring 33% stake in Eacn Net

Inc. In 2002 Ebay acquired paypal for $1.5bn.

Entered India in 2004 throurg the acquisition of

Bazee.com for $50mn

In 2005 Ebay bought Shopping.com for $620mn andacquired Skype for $2.6bn

Presence in 29 countries

Sales of $4.5bn in 2005

Sales of $7.67bn in 2007


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Yahoo Founded by Jerry Yang & David Filo 1994 in California,

USA

1996 launched its IPO & 1st international venture in

Japan

1996 a joint venture SoftBank & Yahoo

incorporated Yahoo Japan 1st Japanese language

website

1997 Yahoo Japan launched its IPO & was listed on

JASDAQ

1998 Yahoos share in Yahoo Japan was at 34% & Soft

Bank held 51% stake.


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E-Bay & Yahoo Competing for

Online Auctions Analysts believe that these wouldnt be

successful in the Japan

eBay was 1st company to announce its

plans for Japan

Yahoo Japan immediately set out to

develop a Japanese auction site

Yahoo Japan wanted to secure First Mover

Advantage


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Yahoos Strategies

to Success Able to attract several buyers and sellers

Did not charge Transaction Fee

Designed to facilitate easy Transactions

High interest categories were listed on the top

Bid & sell process was displayed prominently

Items for auctions could be displayed in text view or photo

view or both


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Cont

Introduction of an Escrow Service for Online Auctions

In May 2001, a Fee-Based Personal Identification System was

introduced

In April 2002, it introduced system-use fees for listing andcanceling items on auctions

Introduction of system for verifying postal addresses

In July 2007, Yahoo Japan began anonymous payment &

delivery services

By December 2007, mobile version of Yahoo Japan Auctions

was launched


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E-Bays Failure Japans culture

E-bays presence in Japan

Yahoos first mover advantage

Erred a lot in choice of country head

Merchant-to-person as compared to yahoos person-to-person

Page designing

No transaction fees

Payment procedure

Less Advertisement


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Benefits of Joint Venture Not less than a Strategic Alliance

E-bay entry into Japan and vis--vis

Growth in the Market

Learnt from the lesson


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Ebay & Yahoo

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Transcript of Ebay & Yahoo