EBay has been trying to make its way into the Asian markets. It has been noticed that the American companies have had to face some problems in making their ways into the Asian markets. However, Starbucks has been successfully working in Asian markets since many years.
Cultures have an influence over the markets thus making them cultural markets and these are the main factors that are to be understood. EBay has been a failure in understanding the culture of Asian markets (Lovelock and Wirtz, 2005, p. 23).
Gunaxi is the term that American companies should be familiar with. This explains the basic nature of dynamics involved in the personal network of influence and this concept runs in the Chinese society. This explains the dealing between two people in which one of the persons performs an act of service. EBay has failed to learn the fact that the Chinese, after the Africans, are corrupt people and bribery is a common factor in the Chinese society. To excel in the Chinese society, EBay has failed to make notice of the ways in which Chinese people could be handled so as to make ways in the markets. ...Show more