This is the reason of why I consider this topic in my thesis. EBay, a world leading company on the E-commerce market. They have really strong power of competition in the E-commerce market in the world even there have a lot of competitors like Amazon, Alibaba. In 2002 they entered Chinese E-commerce market and they have been acquiring one of the top E-commerce brand: Eachnet in China. But the benefit from Chinese market is not as well as their plan even they spend a lot of money and never stop investing in the Chinese market.
After 4 years they sell the on-line business to Tom goup in 2006. So before we talk about the reasons of eBay failed in Chinese market, we should think about how E-commerce creates value. In 2001 one theory created by Raphael Amit and Christoph Zott that E-commerce creates value from 4 points: Novelty, Lock-in, Efficiency, Complementarities. There has another theory created by G. T. Lumpkin and Gregory Dess, They thought the E-commerce was creates value by Search, Product Reviews and Reports, Problem-solving, transaction.
In my thesis I focus on the why eBay company which have such strong ability to create value but they have to face many problems in Chinese E-commerce market and they lose in this market. In my thesis I will discusses and analysis the reasons of eBay failed in China because the wrong market strategies and the market strategies of the Taobao which actually become the most powerful E-commerce brand in China.