eBayâ€™s decision to form a joint venture with TOM Online indicates a clear change in strategy for its Chinese market. Having been offered the role of overseeing and executing the alliance strategy, you will be meeting with Meg Whitman next week to discuss the opportunity to manage the new joint venture. If you accept the position, it will be your responsibility to ensure that the joint venture helps eBay regain its lost market leader status in China. To familiarize yourself with eBayâ€™s business in China and to evaluate the potential of eBayâ€™s strategy to successfully meet the companyâ€™s objectives, you have conducted a situation analysis to answer the following questions.
1. What is your reaction to eBayâ€™s decision to use an equity alliance with TOM Online as its strategy in China?
2. What are some of the relevant conditions in the external environment which will influence the success of eBayâ€™s strategy?
3. What are some of the relevant factors within eBay which will influence the success of eBayâ€™s strategy?
4. How can eBay maximize the value of its joint venture with TOM Online and increase the likelihood that the alliance will help to achieve the companyâ€™s vision?
5. What conclusions can you draw from your situation analysis? What additional recommendations can you make to ensure that an integrated and coordinated set of commitments and actions will exploit the companyâ€™s core competencies and maximize value for eBay?