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Business world articles Business world articles Document Transcript

  • Business world articles1.John Donahoe:EBAYJohn Donahoe took charge as president and CEO in March 2008, eBay’srevenues were sliding and the stock was being battered on the Nasdaq that time.According to John Donahoe E-commerce is growing at 30 per cent year-on-yearand eBay India is growing at double that rate (it has 2.5 million registered usershere in 2,471 cities).According to him India is growing market for vehicles ,fashion and jewellery. Sotheir plans are to set up B2B verticals accordingly and according to shoppingexperiences.Paisapay is used instead of paypal in India because of two reasons one It helpsbuild India-specific trust, Second it enables eBay to comply with local regulatoryauthorities.In China, eBay is focused on cross-border market opportunities. EBAY works withalibaba.com and tom online.PayPal is now growing outside eBay as well and it is growing at 30-40 per centyear-on-year. At present, 35 per cent of eBay revenues come from PayPal. By2012, it will be 40 per cent.2. Return To Protectionism:It’s time Indian IT companies start relying less on contracts from the US.India’s outsourcing sector is widely optimistic, it will slow down in the future.Indian it sector is widely dependent on u.s companies for their jobs but u.scompanies has imposed taxes which is an unprecedent act. But according to Kamalnath u.s is not doing any favour to India but they also need Indian people.
  • If tax concessions are geared to discourage companies from sourcing jobs outside,the economics could well change to the disadvantage of Indian companies. TheIndian industry would be wise to take note , and to try and reduce theirdependence on the country which has powered their growth so far.3. The Life After Separation:Hero will have to rearrange its strategies once Honda is out of the pictureHero Honda is the market leader with sales of over 2 million vehicles in the firsthalf of this fiscal and 48 per cent share. Honda manages a small 15 per cent share,but is growing.Hero Honda has become a generic noun when it comes to fuel-efficient bikes. Buthero has to settle its ongoing divorce with Honda as it still has to buy 26% 0fHonda.Honda wants to go on its own because the 9.3-million two-wheeler market willgrow to 16 million by 2015. Apart from paying royalties to Honda, which has risenby 28 per cent this year, Hero will have to come up with a product spec on its ownif it is going to compete with original equipment manufacturer such as Bajaj andTVS. Separation can lower down hero’s sales or can lead to a very slow and steadygrowth.