Ebay

E-Bay has problems in its Asian markets because it now has

competition; not only from other companies in the United States such

a yahoo, but also local competitors in the China and Korean online

auction market such as Alibaba.com’s TaoBao unit. E-Bay has lost its

top position in China’s and South Korea’s online market to TaoBao

because TaoBao allow their users to use their services without paying

a fee, where as E-Bay charges their customers when using their

services.

E-Bay has lowered or waived several listing fees in China, such as

store listing fees in order to compete, but it does not seem to have

any effect due to growing competition and the overall decline of more

than 30% of their stocks . Another reason for E-Bay’s decline is due to

it’s price earning ratio of 40.60, which is more expensive than most of

E-Bay’s problems in China may or may have not been the reason

why the Chief executive of E-Bay’s Chinese unit “Eachment”, abruptly

resigned; talks of selling parts or all of it’s Chinese operations gives

the perception among investors and customers that they are not

confident and is perceived as a negative.

E-Bay uses in China cite that E-Bay’s slow reaction in introducing

new applications; less user friendly sites are reasons why they are

losing customers to TaoBao’ who does a better job in the two areas E-

Bay is lacking. E-Bay faces similar challenges in Korea where it’s

subsidiary, internret Auction, now lags behind the local competitor

GMarket. GMarket, boasts yahoo as a minority investor, unseated E-

Bay earlier this year in terms of revenue by using a savvier product ix

Mix and more aggressive pricing.

E-Bay needs to figure out what their customers are looking for and

come up with ideas on how to win their customers back instead of

punishing their customers. E-Bay placed the demise of their company

on poor sales due...