Globalization of Ebay

EBAY'S PROSPECTIVE GROWTH IN LATIN AMERICA

After a close examination of the different alternative about your potential expansion in Latin America, as well as, the appropriate decision toward iBazar operation in the immediate future; I came out with a set of recommendations that suit well the growth strategy of your company.

IBazar Brazilian Operation

The acquisition of IBazar is a great opportunity for eBay to expand in Europe. The focus of the company in the Europe demands a huge financial, marketing, and technical effort. In one hand, if you choose to get rid of the IBazar Brazil, by either selling it for cash, equity or simply shutting it down, you will find yourself holding off on the pursuit of the Latin America market. However, Latin American has a promising e-commerce market, especially Brazil that is the leader in term of internet user in the region. In the other hand, if you retain IBazar Brazilian operation and you plan to grow in the region organically, you will face a great number of challenges in term of cultural acceptance of unfamiliar purchasing practices, real buying power, technical/infrastructure improvements, internet usage, and the current and potential local and other foreign competition. In this case I recommend you to carry on IBazar Brazilian operation, because it will ensure you presence for the immediate future in one of e-commerce leader country in the region. In the same time you can proceed to an acquisition of an existing player in the region in order to obtain ambitious growth and profit goals. Also you don't have to start from scratch and face the cultural challenges dictated by the different countries of the region in term of language and regulatory system.