Why Is Ebay Failiing in Asia

Let’s take a minute and review the basics of International Business. We know the reason businesses venture out and expand globally is to mainly increase their profits and market shares. Other reasons businesses decide to go globally is to create new markets, to locate new technologies and products for domestic markets or to just find new suppliers. It’s very important though for the business to ask itself these three important questions when expanding globally;

• Where will I expand to?

• When will I expand?

• How will I execute this expansion

Answering these three questions is very crucial. Without considering these three things first could cost you your business all together. Once those questions are answered the business would then need to know and understand rather it will expand independently, with a franchise/licensing, joint or merge. If the business decides to do it independently it can agree to represent a foreign country in their home country’s business community.

Deciding to use a franchising or licensing the business will be able to enter a foreign economy by allowing the permission to produce their product or patent and to make it their own, in exchange for a small fee and sometimes ongoing royalties. A joint expansion is just that. You have two or more businesses coming together to form a jointly held company operating within the foreign market. Then you have businesses that decide to merge. When a business merges it’s simply two independently owned businesses combined into one business. Last but not least you need to know consider your global marketing strategies. The ensure great success you need to remember the 4 Ps;

• Product

• Pricing

• Promotion

• Place

Now that we know the basics of international business and global expansion I’ll now turn to the question at hand. Why is Ebay having