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Question Paper
 
Integrated Case Studies - I (MB3J1): January 2009
 
Case Study
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(100 Marks)
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This section consists of questions with serial number 1 - 5.
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Answer all questions.
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Marks are indicated against each question.
Read the case carefully and answer the following questions:
 
1.
Till 2005, eBay EachNet was the leader in the Chinese e-commerce market, controllingmore than half of it. But eBay EachNet soon lost its market leadership position toTaobao.com (Taobao). In this context, analyze the reasons that can be attributed toTaobao’s edge over eBay.
(20marks)<Answer>2.
a. To enable people to trade with each other, Pierre Omidyar created a marketplace inSeptember 1995 which was later called eBay. By mid 1997, eBay received onemillion page hits per week with 15,000 listings on a day making it one of the mostvisited sites on the Internet in the US. Discuss the growth strategies adopted by eBayin US.
(15marks)<Answer> 
b. eBay initially had some success in China but failed to live upto the expectations. Inthis light, discuss how eBay entered China and the strategies it adopted to reviveitself and its slowing growth rate.
(10marks) 3.
A significant mistake made by the eBay team in China was its notion of applying its USbusiness model in China. Discuss the business model of eBay in the US, its strengths andweaknesses. Also analyze how eBay tried to adapt its business model to increase itsmarket share in China.
(20marks)<Answer>4.
The entry of large Multi National Companies (MNCs) into emerging economies wasconsidered to be the end of local players in markets. With the evolution of new marketsand the change in the mindset of the customer, local companies are more successful thanbefore in keeping the MNCs at bay. Critically analyze this statement giving reasons forsuccess/failure using relevant examples from the world of business.
(15marks)<Answer>5.
The concept of e-commerce was introduced in China only in 1993 and it took some timefor it to catch on. But once it did, e-commerce in China grew at a frantic pace. In thisregard, discuss the opportunities and road blocks of Chinese e-commerce market.
(20marks)<Answer> eBay’s Problems in China
“We do not anticipate fading from China, we are very committed to the China market and we think the China market is going to be a very big market for m-commerce (mobilecommerce) as well as e-commerce.”
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Meg Whitman, President and CEO, eBay Inc, in 2006.
“I think it’s a question of recognizing that they were not achieving what they were hopingto, and finding a solution that offers them a better opportunity for the long term…. I think 
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The case is prepared only for the purpose of examination and not to illustrate effective or ineffective performance of the company. Thecase contains factual information adapted to and combined with other information to enable analysis of the given topics.
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