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Showing posts with label eBay. Show all posts
Showing posts with label eBay. Show all posts

Saturday, May 5, 2012

How do digital information good characteristics influence pace and modalities of international market entry?

As it was described in the previous post - Internationalization of Internet Companies - digital goods providers can deploy different internationalization strategies. In this post I will use eBay as a case, describing its internationalization process compared to three literature-streams: internationalization theory, internalization theory, and research on international new ventures.

The Internet allows small firms to become international via a website, and communication costs are reduced in international operations.

Digital information goods differ from other goods in several dimensions and their economic implication. These are:
a. experience good character
b. transportation costs
c. (re-) production costs
d. product adaptation costs 
Digital information good providers seek to enter foreign markets through entry modes that allow
a. control for branding and advertising strategies, and
b. gaining access to locked-in customer bases.