CASE: eBay's GLOBALIZATION STRATEGYFebruary 21, 2001From: Amal MBA Student, Spring 2006To: Matt BannickSenior Vice President, eBay InternationalIn response to your request for a stranger's opinion on the how you can manage your growth in Latin America, the following report presents my analysis and recommendations on your potential growth in the region and how to manage IBazar's Brazilian division. I hope my report justifies my recommendations. EXECUTIVE SUMMARY After receiving your email asking me to provide recommendations on IBazar's Brazilian operation and your upcoming expansion into Latin America, I spent the entire week analyzing eBay's current situation, as well as the e-commerce market in Latin America, in order to find the appropriate solution that guarantees immediate success of your business in the region. . First, I will start with a systematic analysis of eBay's international market entry strategies. Second, I will examine the e-commerce market in Latin America. Finally, I will use the previous analysis to provide you with a set of recommendations regarding potential expansion into Brazil, as well as your expansion throughout Latin America. INTERNATIONAL MARKET ENTRY STRATEGIES Let's return to one of eBay's very first goals: to create a global trading platform that would allow anyone, anywhere to trade virtually anything as easily as possible . After eBay's initial successes in the United States, the company began exploring opportunities to offer the service internationally. eBay used all three options available to explore a new market. One of them is clearly to create a site from scratch. This is essentially what she did in France and Italy. Another option is to simply buy companies that already exist, and that's what it did with eBay Germany. The third option is to form a partnership. This is what he did in Australia and Japan. But the dominant strategy adopted by eBay is to acquire critical mass in global markets so that it can bring together buyers and sellers. The ability to localize a global business is one of the biggest challenges. When you have a business model that works in your country, the challenge is to discover what is essential for success and then look for ways to localize. This is why eBay is increasingly buying a local player to enter a market.