Ebay There Are a Number Chapter

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Chinese consumers are as yet unaccustomed to online purchases, the banking system is not as wired, and there are issues with Chinese characters that eBay will need to address. Until Internet security matches Western levels, eBay's ability to penetrate the Chinese market could be inhibited. Information security in China is struggling to keep up with the explosion of the Internet there, including Internet crime (AsiaInfo, 2009).

The competitive environment will also be a challenge for China. Google and other American companies have met with strong competition in China, in part because Chinese consumers prefer Chinese companies and in part because the market is so large that competition is intense. The degree of competitive intensity that develops in the Chinese online auction market will help determine the success of eBay's new venture in the country.

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Lastly, a critical component of the external environment is the development of ancillary industries that serve to support eBay's operations. This includes everything from Internet security and Internet service providers to courier services and online banking. Courier services is an interesting factor because they are essential to eBay's success in the United States, but underdeveloped in China. Chinese consumers simply cannot send goods to one another as easily as Americans can. Thus, eBay's success will depend in part on the development of the industries that typically support eBay's operations.

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