Bidding for Market Leadership

Background
A US based technology and service player has developed a strong presence in the eBay services market. Their service allows major manufacturers to use eBay as an end of product life channel. This is a growing area; companies are typically able to recognize a much higher yield if they liquidate excess or out dated stock on eBay rather than through traditional market means. However this process requires a tight linkage between eBay and the stock control mechanism of the manufacturer. This process is facilitated by this company. eBay continues to develop a global presence and this company wanted to be a part of that success.
Contraco was tasked to evaluate the global market potential of their current product offerings and recommend potential markets with deployment strategies.

Analysis and Team Work
Contraco carried out a detailed market analysis. The results of the analysis indicated that the German and UK eBay markets would be the highest value point of entry for their products. Contraco explored several entry strategies, eventually settling on an entry through acquisition approach, where the company would take over one or more local companies with similar business models. Our research defined the potential targets and recommended on a final selection. Contraco successfully negotiated on behalf of our partner.
Our business and development teams successfully completed translating their products into German in compliance with German legal and tax requirements for the local business and tax rules associated with these sorts of transactions.

Results and Next Steps
As a result of our deployment of their products they have achieved a dominant position in the German market and are now poised for a UK launch again with Contraco as their market entry partner.