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Essay / Research Paper Abstract
A 3 page paper discussing eBay's international acquisitions strategy and reasoning. eBay has been growing at huge rates – 70 percent in 2004 – and has begun to level off. As Wall Street is fickle and has difficulty grasping that such growth rates are not sustainable over long periods of time, eBay pursues its international acquisition strategy as a means of preserving some of the domestic growth it certainly cannot maintain over a period of years. Continued acquisitions likely will be beneficial for the company. Bibliography lists 4 sources.
Page Count:
3 pages (~225 words per page)
File: CC6_KSintlM-AeBay.rtf
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Unformatted sample text from the term paper:
in at number 529, Fortune lists eBay on the Fortune 500 (eBay, 2005). Its 2005 rank reflects increase from the number 673 position in 2004, and eBay also holds
the number 5 position on Fortunes 100 Fastest-Growing companies (Fortune 500, 2005). eBay maintains offices in several countries throughout the world, most notably the United Kingdom, Australia, Germany and
Japan. It lists specific trading sites in 28 countries in the Americas, Europe and Asia, though some of the affiliations are based on licensing rather than on ownership.
The company owns all of the four major sites listed above. Acquisition Rationale It seems strange that eBay would feel the need to
acquire and maintain international sites, given that its business is ecommerce that can be conducted all over the world. Cultural and payment systems vary between regions of the world
and the nations within those regions, however. eBays international acquisition policy seeks to provide an added measure of confidence for buyers in those countries in which it operates.
As example, eBay UK has been highly successful. A few sellers requiring payment in pounds sterling can be found on eBays primary US
site at any time. Many sellers choose not to ship internationally, and cultural issues exist between the US and UK even though the two nations use a common language.
A visit to eBays UK site (www.ebay.co.uk) reveals British spelling (i.e., "favourites"); DVDs that will work in Europe but not in the US; and all prices listed in pounds
sterling rather than in dollars. Certainly these and similar features are more attractive to British shoppers than to American ones. eBays stated
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