With the opportunities that the internet revolution is offering, there has been a growing need for firms to venture into e-commerce service where firms can reach out to many customers through the use of website of portals that are used to offer services or goods for sale to clients. However, for a given company to succeed, some factors must be put into consideration so as to ensure the success of the business. The factors to consider area:-
a) Competitors: A firm must evaluate and identify competitors who have established themselves in a given market in order to foresee any threat or potential.
b) Sign up process: For a new foreign market, getting to know the existing sign up process can make a firm be in a position to fit in into established mean of signing up for services.
c) Payment systems. The payments systems for e-commerce vary from one country to another and understanding difference can help a firm in deciding how to handle its customers in regard to payment. While a business firm may have its own payment system, the firm must also ensure that its option does not necessitate new changes.
d) Commissions: E-commerce commission varies from one region to another and this is essential in attracting customers. A firm should determine an average commission being offered in a given country and set its own with little deviations from the value.
e) Culture: The culture of the foreign country is critical in aligning the one business operations with the aim of achieving success in particular regions.
While these factors for consideration are appropriate for a firm that has an online presence and wishing o expand its presence, the same factors may be considered for a ‘brick and mortar’ since such a company need to work at the same foreign environment that may require similar options to be considered. However, some of the factors may not be put into effect being that some differ to some extent and may not be applicable to the same extent.
The central issue in the case has been the failure of eBay in identifying the strategies that it could have used to enter into the Japanese market. The failure of eBay in articulating the significance its competitors in japan spelt its doom with its eventual withdrawal from japan. As a new firm, eBay failed to put into accounts the manner in which e-commerce business was been handled in Japan in terms of signup requirements, commission, commission of bids, marketing of good and services. In nut shell, eBay failed to account the factors that could have made it devise a competitive strategy against its competitors like Yahoo! Actions and Rakuten who had established well in Japan.
Had eBay researched on the above factors, It could have been able to create an initial entry strategy that would have accorded it a substantial market share just like back in the United States where it is leading. This case also brings the issue of culture which must be put into consideration in order to increase the chances of success for a given firm. In Japan, most of the people were not used to buy thing online with online payment systems but preferred paying upon delivery of good. For this reason, most of the people receive eBay’s entry into the market wholeheartedly.
It is true that some parts of the world are much more similar to other areas particularly ion mentioning of some of the world cities. This may be explained by the prevalence of a given culture of business where some factors that influence business operations resemble one another. Such a case may result from influx of firms that are international and creating similar business environments. Such occurrence can be beneficial to firms wishing to establish their e-commerce in such areas since strategies devised can be used in more than one location when necessary.