Piotr Bartenbach

Filip Kamierski

Bartomiej Staszczyk

A contrast between the Traditional

and
Born Global model of expansion.

Table of Content:

Definition of the traditional and born global expansion

models
Year-to-year development of eBay & Allegro
eBay & Allegro: Comparison of current situation
Summary

The Traditional Model of Expansion

Business internationalization has for long been regarded as
an incremental process, wherein firms gravitate towards
psychologically close foreign markets and increase commitment
to international markets in a gradual, step-wise manner through a
series of evolutionary stages.
As time goes by, they commit greater resources to overseas
markets and tend to target countries that are increasingly
psychically distant.
The assumption of such a model of internationalization is that
firms are well established in their domestic markets before
venturing abroad.
Source: W.Popczyk, Ph.D., Presentation on Globalisation

Example in
our
presentation

The Born Global Model of Expansion

The emergence of born global firms at the end of the eighties
challenges the stage model. Typically, global born firms are smaller
entrepreneurial firms that internationalize from inception (the
outset) or begin doing it shortly thereafter.
These firms often possess a knowledge-based competitive
advantage that in turn enables them to offer value-added products
and services (a high added value of scientific knowledge
embedded in both product and process).
The firms are set up by active entrepreneurs, often due to a
significant breakthrough in process or technology.

Source: W.Popczyk, Ph.D., Presentation on Globalisation

Example in
our
presentation

Expansion Models

Source: http://emeraldinsight.com

1995

eBay (echoBay) then called

AuctionWeb is founded by
Pierre Omidyar after a long Labor
Day weekend writing code on his
home computer

Pierre posts the first item on the

auction site, a broken laser pointer,
and it sells for $14.83.

Pierre hires his first employee, Chris

Agarpao to help him handle the
website's operations.

---

1996

eBay entered into its first third-party

licensing deal, with a company
called Electronic Travel Auction to
use SmartMarket Technology to sell
plane tickets and other travel
products.

---

1997

The AuctionWeb brand is officially

retired and eBay is now hosting more
than 200,000 individual auctions per
monththat's compared with 250,000
auctions in all of 1996.

---

1998

eBay goes public in September,

listing shares on NASDAQ under
the symbol EBAY.

---

1999
eBay expands to:
United Kingdom
Germany
Australia
eBay is now on 3
different continents and
allows sellers to ship
their products to different
countries

Allegro was established on

13th December by a small
company - Surf Stop Shop
LLC, whose owner, and also
the
inventor
of
whole
Allegro project, was Arjan
Bakker.

Potential reason for starting

Allegro was the success of
eBay and lack of its
presence in Poland.

Arjan
Bakker
together
with
a
proggramist
Tomasz Dudziak, created

2000

eBay acquires Half.com, a marketplace

for used books, movies, music and
games.

eBay opens marketplaces in

Austria,
Canada,
France,
Taiwan.

Sustainable Development

2001

eBay expands internationally with

sites in:
Ireland,
Italy,
Korea,
New Zealand,
Singapore
Switzerland.

otoMoto.pl the biggest polish

online
automotive
service
launched as an integral part of
Allegro.pl

2002

eBay Inc. acquires PayPal, combining

the strength of the world's largest
online marketplace with the web's
leading payment system.
eBay acquires 33% of China's
EachNet in 2002 (and completes the
acquisition in 2003).

Sustainable Development

2003

eBay is listed at #8 on Fortune's list

of Fastest Growing Companies

Allegro entered new markets:

Czech Republic (as Aukro.cz)
Slovakia (as Aukro.sk)

2004

eBay Inc. acquires Marktplaats.nl, the

Netherlands' leading online classifieds site

eBay expands its presence in Asia with

sites in Malaysia and the Philippines.

eBay acquires the Baazee marketplace in

India.

eBay opens its China Development Center

in Shanghai to accelerate technology
innovation.

eBay acquires mobile.de, the leading

online vehicles marketplace in Germany

Allegro entered new markets:

Hungary (as TeszVesz.hu)
Russia (as Molotok.ru)

2005

eBay Inc. aquires:

Gumtree,
Rent.com,
Skype,
Shopping.com
eBay expands into Poland

Intensive marketing campaign

in Homeland (Poland).

Marketing campaign is partially

connected
with
eBays
expansion into Poland.

2006

eBay acquires Tradera, Sweden's

leading
online
auction-style
marketplace.
eBay Hong Kong officially launches

Sustainable Development

2007

eBay Inc. acquires StubHub, the world's

largest online ticket marketplace

eBay tops "Best Companies to Work for"

list in Ireland.

8 percent of all e-commerce worldwide

is transacted via PayPal.

eBay
Inc.
worldwide
employee
population surpasses 15,000

Allegro entered:
Ukraine (as Aukro.ua)
Romania (as Tizo.ro)
Bulgaria (as Aukro.bg)

Allegro bought Ceneo.pl

the biggest Polish price
comparison searcher

2008

eBay acquires Bill Me Later, a leading

online-oriented payments brand.

eBay acquires Den Bla Avis and

BilBasen, leading classifieds sites in
Denmark.

Sustainable Development

2009

eBay acquires Gmarket, Korea's

leading online marketplace.

Allegro entered new markets:

Kazakhstan (as Allegro.kz)
Belarus (as Allegro.by)
Serbia (as Allegro.rs)

2010

eBay Inc. acquires local product

search company, Milo.com

eBay acquires industry-leading

mobile app developer Critical Path.

eBay acquires brands4friends,

Germany's leading online shopping
club for fashion and lifestyle.

Sustainable Development

Real Users
eBay

Allegro

300000000

30000000

275000000

27500000

250000000

25000000

225000000

22500000

200000000

20000000

175000000

17500000

150000000

15000000

125000000

12500000

100000000

10000000

75000000

7500000

50000000

5000000

25000000

2500000

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Sources: http://ebayinc.com/history; Gemius Polska

2008

2009

eBay
Allegro

Current Markets
38

Argentina
Austria
Australia
Belgium
Brazil
Canada
China
Czech Republic
Denmark
Finland
Germany
Greece
France
Hungary
Hong Kong
Ireland
India
Italy
South Korea

11

* Country of origin

Belarus
Bulgaria
Czech Republic
Hungary
Kazakhstan
Poland*
Romania
Russia
Serbia
Slovakia
Ukraine

Piotr Bartenbach

Filip Kamierski

Bartomiej Staszczyk

Thank you for your attention!

Presentation prepared for Global Business Environment classes run by Wojciech Popczyk, Ph.D.