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International Marketing Review of 2 Journal Article

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International Marketing


  • Introduction
  • Discussion
  • Article 1
  • Article 2
  • Conclusion
  • References


International business has been majorly accelerated by the advent of globalization. The multinational companies all over the world have implemented strategies to capture the world market. Here we take into consideration two articles: PayPal Helps Fuel Revival at EBay which was published on the Wall Street Journal on 17th October 2012 and Global Marketing: Local heroes which was published on The Economist on 14th January, 2012. The first article is related to the boost of electronic commerce as an integral part of international business. The second article discusses multinational corporations expanding their activities across the world, especially in developing economies.


Article 1

Following the release of EBay’s September financial performance, an article titled “PayPal helps drive turnaround at EBay” was released in October 2012. (The Wall Street Journal, 2012). EBay’s market struggled in the first two quarters of 2012, but shows signs of recovery in the third quarter financial report. The rise of EBay’s sales was fueled by purchases made by PayPal. EBay’s sales increased by 15% to USD 3.4 billion, compared to the previous year’s revenue. The company’s earnings and success were also due to the introduction of a revamped platform and improved functionality in global listing and shipping facilities. Through its power shipping and same-day shipping programs, eBay has effectively captured the global e-commerce industry. EBay’s delivery programs provide the company a huge comparative advantage against rivals such as Amazon.com and Wal-Mart shops. The new eBay website design aimed to increase market share by providing user-friendly services and fast checkout processes. After being purchased by EBay Inc. in 2002, PayPal became the first electronic payment mechanism for EBay in the United States as well as the worldwide market for cross-border products and services purchases. In 1999, eBay purchased Billpoint in order to utilize its facilities as an electronic payment portal. However, Billpoint encountered stiff rivalry from PayPal, which was the preferred method of payment for 25% of EBay auctions. As a result, EBay made the decision to buy PayPal as part of a larger strategic plan to expand market share and accelerate the company’s development. The EBay and PayPal partnership was a game-changing partnership in the e-commerce sector, boosting EBay revenue and attracting buyers from all over the world. PayPal was a key component of eBay’s rise to prominence as a multinational e-commerce behemoth. One of the most rapidly changing aspects of globalization is e-commerce. EBay allows people from all around the world to browse for, purchase, and sell items on their website. The e-commerce portal also serves as a major procurement hub for a host of international merchants. EBay has grown into a large marketplace of vendors and sellers from a variety of sectors, including clothes, food, shoes, decor, books, appliances, and everything else that can be traded. PayPal made a significant contribution to eBay’s sales generation by growing customer bottom lines by offering a pleasant experience for consumers. EBay has effectively integrated technology integration into its corporate operations in light of globalization.

International Marketing Review of 2 Journal Article

Article 2

The essay Global Marketing: Local Heroes is linked to the publication of John Quelch and Katherine Jocz’s book All Business is Local: Why Place Matters More Than Ever in a Global Virtual World (The Economist, 2012). The article discusses the increasing relevance of position for an enterprise, as well as the the pattern of large corporations attempting to break into untapped markets. The planet has become more interconnected as a result of large corporations focusing heavily on developing markets. The companies entering the new regions have to adopt the culture and mannerisms of the region and integrate them into their operations to make them successful in the particular countries (Paul,2008, p.41). The best global brands are likely to succeed locally only when they adopt business models to suit the environment of the new market. For example, McDonalds customized its menu according to the needs of different geographical areas though they kept their slogan globally same. The company included Spicy McChicken burger in Bangkok, dark bread rolls in Vienna and Indian masala grill burger in India to suit the local tastes of the different countries.The business model adopted by McDonalds to start their operations in India was designed by implementing the local culture and ethics which brought immense success for the company when similar companies failed in India. The article indicates towards the growing importance of one of the 4Ps of marketing i.e. place in the globalized business practices. The author suggests that a company can survive in anew country only when it adapts to the environment and considers the local factors like the suppliers in the market, the consumer behavior of the target segment and the cultural and social values of the country.  The author also suggests how the environment influences the behavior as well as the needs of the consumers. He also hints at the challenges faced by different companies when they decide to go global. The article relates to the fact that the world is becoming a more complex environment for business with the increase in globalization and international business. The article also hints at the fact that though the companies are more allured towards the global markets, they should actually concentrate on the local markets to achieve a strong global presence (Justin, 2012).


International business is aimed at successfully integrating the economic, personal, political and technological factors throughout the globe. With the advent of globalization, the electronic commerce businesses and international trades are growing at an accelerated rate. The whole world is now considered as a global market. Electronic commerce ensures the flow of goods and services across countries with the help of the latest technological innovations. On the other hand, international business practices are gaining more and more importance with multinationals expanding into all possible markets in the world. Profit maximization is the key objective underlying the strategies of both electronic commerce and internationalization of businesses.

  • The Wall Street Journal. 2012. PayPal helps fuel revival at EBay. [Online]. Available at http://online.wsj.com/news/articles/SB10000872396390444734804578062971668062126. [Accessed on 4th December 2013].
  • The Economist. 2012. Global Marketing: Local Heroes. [Online]. Available at http://www.economist.com/node/21542733. [Accessed on 4th December 2013].
  • Paul, J. 2008. International Marketing: texts and cases. New York: McGraw Hill.
  • Justin, J. 2012. How to compete in China’s e-commerce market? [Online]. Available at http://sloanreview.mit.edu/article/how-to-compete-in-chinas-e-commerce-market/. [Accessed on 4th December 2013].

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