Wtas
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CASE 6 EBAY IN JAPAN: STRATEGIC AND CULTURAL MISSTEPS
“I am not one for regrets, but I still regret we don’t have a presence in Japan.”1 —MEG WHITMAN, CEO, eBay in 2008. “When we arrived last year, the 800-pound gorilla [Yahoo Japan Auctions] was already positioned.”2 —MERLE OKAWARA, President and CEO, eBay Japan in 2001 “I think eBay learned what it did wrong in Japan. Because of the nature of the auction model, I think it now understands that you have to be the leader in the market. I think it’s a smart move for the company to have closed its site in Japan and to wait for another time when it can go in and do what it takes to be the leader there.”3 —LINDSAY HOOVER, Vice President, Houlihan Lokey Howard & Zukin4 in 2002
Ebay Reenters Japan
In December 2007, eBay Inc., the U.S.-based online auction company, announced its reentry into Japan, through an agreement with U.S.-based Internet services company, Yahoo! Inc.5 eBay and Yahoo agreed to link their auction sites to facilitate cross-border bidding. This would enable the users of Yahoo Auctions Japan to bid for items listed on eBay’s U.S. site using their Yahoo Japan ID, and eBay users in the U.S. to buy items auctioned on Yahoo Japan using their eBay ID. On Yahoo and eBay teaming up, Meg Whitman,6 President and CEO, eBay, said, “We are excited to partner with Yahoo Japan in providing Japanese users with localized site designed to enable them to shop on the eBay marketplace with ease and convenience.”7 As a part of the agreement, the companies decided to start a Japanese website, Sekaimon.8 Apart from translating the names and details of the items listed on eBay’s U.S. website into Japanese, the site would provide services like overseas shipping and customs clearance. According to Hiroko Sato, zanalyst at JP Morgan, Chase & Co, Tokyo, “the alliance will create a very
attractive service for U.S. and Japanese users as it allows them to purchase
12/2/09
4:01 AM
Page 281
CASE 6 EBAY IN JAPAN: STRATEGIC AND CULTURAL MISSTEPS
“I am not one for regrets, but I still regret we don’t have a presence in Japan.”1 —MEG WHITMAN, CEO, eBay in 2008. “When we arrived last year, the 800-pound gorilla [Yahoo Japan Auctions] was already positioned.”2 —MERLE OKAWARA, President and CEO, eBay Japan in 2001 “I think eBay learned what it did wrong in Japan. Because of the nature of the auction model, I think it now understands that you have to be the leader in the market. I think it’s a smart move for the company to have closed its site in Japan and to wait for another time when it can go in and do what it takes to be the leader there.”3 —LINDSAY HOOVER, Vice President, Houlihan Lokey Howard & Zukin4 in 2002
Ebay Reenters Japan
In December 2007, eBay Inc., the U.S.-based online auction company, announced its reentry into Japan, through an agreement with U.S.-based Internet services company, Yahoo! Inc.5 eBay and Yahoo agreed to link their auction sites to facilitate cross-border bidding. This would enable the users of Yahoo Auctions Japan to bid for items listed on eBay’s U.S. site using their Yahoo Japan ID, and eBay users in the U.S. to buy items auctioned on Yahoo Japan using their eBay ID. On Yahoo and eBay teaming up, Meg Whitman,6 President and CEO, eBay, said, “We are excited to partner with Yahoo Japan in providing Japanese users with localized site designed to enable them to shop on the eBay marketplace with ease and convenience.”7 As a part of the agreement, the companies decided to start a Japanese website, Sekaimon.8 Apart from translating the names and details of the items listed on eBay’s U.S. website into Japanese, the site would provide services like overseas shipping and customs clearance. According to Hiroko Sato, zanalyst at JP Morgan, Chase & Co, Tokyo, “the alliance will create a very
attractive service for U.S. and Japanese users as it allows them to purchase