바로가기메뉴

본문 바로가기 주메뉴 바로가기

logo

eBay: Smart Entry Strategy into the Korean Market Through M&A and its Post-Merger Integration

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2019, v.17 no.1, pp.47-56
https://doi.org/https://doi.org/10.15722/jds.17.1.201901.47
Park, Young-Eun
Allui, Alawiya
  • Downloaded
  • Viewed

Abstract

Purpose - This case study illustrates the story of eBay Korea, which owns two most leading Korean open market companies, AUCTION and Gmarket. The main concerns are to take over the Korean top domestic companies one by one, then, emerge these two giants through its well-developed post-merger Integration by eBay, an American multinational corporation. Research design, data, and methodology - This case explores various secondary resources such as periodicals, annual reviews, magazine, news articles, commentaries, even some interview materials related to 'eBay Korea' and industry source on condition of anonymity based on the critical reviewing of existing studies on these topics as well. Results - The findings of this study show the merger and acquisition of two market leaders in Korea is the only successful case in Asian Markets. The eBay's choice of entry mode is appropriate considering the timing, synergy and efficiency by sharing their resources. Conclusions - This study examines the successful entry and settlement process of foreign, multinational company through mergers and acquisitions in the Korean market. This would be a valuable in the studies of International Business and Global entry or distribution strategy in the e-commerce and open market dealing with M&A and its post-merger integration.

keywords
E-commerce, Open market, Merger and Acquisition, Post-Merger Integration

Reference

1.

Aitken, B. J., & Harrison, A. E. (1999). Do Domestic Firms Benefit From Direct Foreign Investment? Evidence From Venezuela. American Economic Review, 89(3), 605-618.

2.

Barkema, H. G., & Vermeulen, F. (1998). International expansion through start-up or acquisition: A learning perspective. Academy of Management Journal, 41(1), 7-26.

3.

Blomstrom, M. (1986). Foreign Investment and Productive Efficiency: The Case of Mexico. Journal of Industrial Economics, 35(1), 97-110.

4.

Blomstrom, M. (1989). Foreign investment and spillovers. London, England: Routledge.

5.

Blomstrom, M., & Persson, H (1983). Foreign Investment and Spillover Efficiency in an Underdeveloped Economy: Evidence from the Mexican Manufacturing Industry. World Development, 11(6), 493-501.

6.

Buckley, P. J., & Casson, M. C. (1998). Models of the multinational enterprise. Journal of International Business Studies, 29(1), 21-44.

7.

Charles W. L. H., & Tomas M. H. (2017). International Business: Competing in the Global Marketplace. UK:McGraw-Hill.

8.

Chu, W., & Anderson, E. M. (1992). Capturing ordinal properties of categorical dependent variables: A review with application to modes of foreign entry. International Journal of Research in Marketing, 9(2), 149-160.

9.

Hinz, O., & Jochen, E. (2010). The Impact of Search and Recommendation Systems on Sales in Electronic Commerce. Business and Information Systems Engineering, 2(2), 67-77.

10.

Jeong, D. B., & Wang Q. (2016). Evaluation on Development Performances of E-Commerce for 50Major Cities in China. Journal of Distribution Science, 14(1), 67-74.

11.

Johanson, J., & Vahlne, J. E. (1977). The internationalization process of the firm – a model of knowledge development and increasing foreign market commitment. Journal of International Business Studies, 8(1), 23-32.

12.

Kogut, B., & Singh, H. (1990). The mechanism of internationalization. International Marketing Review, 7(1), 11-24.

13.

Koo, J. S. (2014). The Impact of Acquisition Announcements on Acquiring Firms' Alliance Partners:A Research Review and Compositive Research Model for Retail Industry. Journal of Distribution Science, 12(5), 15-26.

14.

Lee, J. (2017). eBay becomes No. 3 retailer in Korea. The Korea Herald. Retrieved June 23, 2017 from http://www.theinvestor.co.kr/view.php?ud=20170623000423.

15.

Pan, Y., & Tse, D. K. (2000). The Hierarchical Model of Market Entry Modes. Journal of International Business Studies, 31(4), 535-554.

16.

Park, Y. E. (2017). Dynamics of Global Distribution after Initial Entry. Journal of Distribution Science, 15(12), 5-19.

17.

Park, Y. E. (2018). The Endless Challenges of KIA Motors for Globalization: A Case Study on Kia in Saudi Arabia. International Journal of Industrial Distribution &Business, 9(9), 45-52.

18.

Park, Y. E., Allawiya A., & Raneem A. (2017). Determinants of Entry Modes Choice for MNEs:Exploring Major Challenges and Implications for SaudiArabia. 1st AUE international Research Conference, in Dubai, UAE, Springer.

19.

Root, F. R. (1987). Entry Strategies for International Markets. Lexington, MA: D.C. Heath.

20.

Sheikh, M. J., Ahmed M. M., Arshad Q., & Shakeel W. (2015). Mergers and Acquisitions as Vital Instruments of Corporate Strategy: Current and Historical Perspective. The Journal of Asian Finance, Economics and Business, 2(1), 15-21.

21.

Sperdea, N. M., Enescu, M., & Enescu, M. (2011). Challenges of Managing E-commerce, Economics, Management and Financial Markets (Woodside), 6(2), 194-199.

22.

Statista (2018). eBay's annual net revenue, Retrieved October 30, 2018 from https://www.statista.com/statistics/507881/ebays-annual-net-revenue/

23.

According to internet world stats (2018), Brunei (94.6%), Japan (93.3%), and South Korea (92.6%), they are 3top countries with the highest internet penetration rates. (source: https://www.internetworldstats.com/stats3.htm)

The Journal of Distribution Science