eBay's Globalization Strategy
2001 | Case No. SM89
This case reviews eBay’s very successful international expansion history, and introduces its latest decision –whether or not to pursue an opportunity to expand its presence in Latin America. At the opening of the case, eBay is the world’s largest online auction company; Matt Bannick, Vice President of International, had spearheaded international growth since late 2000, working towards eBay’s goal to have a presence in 25 countries by 2005. In February 2001, the company acquired iBazar, a leading European online auction with a Brazilian presence as well. The strong European presence, far more than the Brazilian business, motivated the acquisition. Nevertheless, eBay had already considered developing a presence in Latin America, and this opportunity has prompted an immediate decision. At the close of the case, Bannick must present to CEO Meg Whitman and give her his decision for the next step with iBazar. Bannick must decide whether or not to maintain its presence in Latin America; if the company chooses to maintain the presence, should it “hold” or grow – through acquisition or organic growth?
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