Strategic management ebay case study analysis. Strategic Management Case Study Ebay 2022-10-17

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Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company's top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes. In this essay, we will conduct a case study analysis of eBay, a global online marketplace that connects a diverse and passionate community of buyers and sellers.

eBay was founded in 1995 by Pierre Omidyar as a platform for individuals to buy and sell goods and services. Today, eBay has grown into a global e-commerce giant, with over 183 million active buyers and 25 million sellers on its platform. The company's mission is to be the world's favorite destination for discovering great value and unique selection.

One of eBay's key strategic initiatives has been its focus on innovation and technology. The company has invested heavily in artificial intelligence, machine learning, and data analytics to improve the user experience and drive growth. For example, eBay has developed a feature called "Structured Data" which uses machine learning algorithms to analyze and categorize product listings, making it easier for buyers to find what they are looking for. This has helped to improve the overall search experience on the platform and drive sales.

Another strategic initiative for eBay has been its focus on building strong partnerships and alliances. The company has established relationships with major retailers such as Target and Best Buy, as well as with smaller, specialty sellers. This has helped eBay to expand its product offerings and reach a wider audience.

In terms of its external environment, eBay has faced challenges from competitors such as Amazon and Alibaba, both of which have significantly larger market share in the e-commerce space. To address this, eBay has focused on differentiating itself through its commitment to innovation and its focus on building a strong community of buyers and sellers.

One key strength of eBay is its large and loyal customer base. The company has been able to build a strong brand and reputation over the years, which has helped to drive customer loyalty and repeat business. This has also helped eBay to attract new customers through word-of-mouth referrals.

Overall, eBay's strategic management initiatives have been focused on driving growth and innovation, building strong partnerships and alliances, and differentiating itself from competitors. By focusing on these areas, the company has been able to maintain its position as a leading player in the e-commerce space.

Case Study: EBay

strategic management ebay case study analysis

Business model no strong direct competition 3. However, during 2 nd quarter of 2016, the company has been able to increase revenue by 6% compared to previous year. New York, NY: McGraw-Hill Martin, J. The four components of VRIO analysis are described below: VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. Goodwill is an intangible asset. The same system sends daily status updates to active sellers and bidders and maintains user registration information, account information, current auctions, and historical listings. Keep up to date with the latest trends and innovations with expert advice and real-life case studies so you can win more e-commerce customers.

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Ebay Strategic Management

strategic management ebay case study analysis

Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. Besides this, management can use an extensive database to manage information regarding supplies and customer, which can help in daily business operation Ho 2014. The majority of sellers are now big retailers selling out of season or overstocked products at a fixed price. At the time that eBay acquired Pay Pal in 2002 it was already the leading online payment system in the United States. These Feedback Forums, however, did not guarantee an honest community and so fraud and other illegal activities were witnessed. Although traditional eBay sellers complained about the difficulty for them to do business profitably with the new strategy, Donahoe believed buyers wanted fixed prices, quick service, and free shipping.

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Case Study and Strategic Management of eBay Proposition

strategic management ebay case study analysis

In China as well, Taobao has dominated the industry, because it is a Chinese company, they are very aware of Chinese consumers preference and Chinese consumers are very comfortable with using the website. The more online customers PayPal has, the more attractive as a target for identity thefts it becomes. Existing e-commerce businesses operate in the market at wide scale. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common. One being the online auction business model wherein eBay served as the value-added facilitator of trade between a buyer and a seller in a highly individualistic manner. Thus, it cannot use its marketing initiatives to increase sales on its website in order to improve its revenue. Harvard Business Review, November-December, 61-78.


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eBay Strategic Marketing

strategic management ebay case study analysis

Finally, the company has invested in related businesses such as PayPal and Skype. EBay seems to have solutions to all the anticipated problems and challenges. There is a fear for EBAY to lose both supplier and customer in European Zone. The customer satisfaction—loyalty relation in an interactive e-service setting: The mediators. The company has to ensure that it establishes exceptional relationships and maintain it principles that are based on trust if it is to succeed with the strategy. These four aspects of a business can help to evaluate long term growth prospects of this company Hussain et al. The growing number of mobile shoppers represents a huge growth opportunity for PayPal as its one of the few payment systems that meets the requirements for convenient shopping and payment processing on the go.

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Analysis of EBay's Business Strategy

strategic management ebay case study analysis

All these acquisitions require millions of dollar and it can be easily totaled up to billions of dollar. For example, the survey has shown 34% of the online shoppers of the age group of 18 to 24 years uses PayPal and similarly in the past for 12 months. The Operating Margin of 21% for the trailing twelve months as compared to its competitors and the industry is a strong indicator that eBay is positioned well in the catalog and online sales sector. Basis of competitive strategy Competitive strategy is creation of better value chain in business. An example of a new Shopper feature which is part of its OVP is the eBay ShopBot on Facebook Messenger. In fact, acquisition strategy is the most common means of implementing diversification.

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Strategic Management: The Case of eBay

strategic management ebay case study analysis

By Dave Chaffey Digital strategist Dr Dave Chaffey is co-founder and Content Director of online marketing training platform and publisher Smart Insights. However, imitation is done in two ways. Customers usually buy products from Amazon and receive it in two to three days, but recently Amazon announced a one day delivery guaranteed. Product development also includes packaging, labeling and use of latest technology Fernie et al. Best Global Brands in 2012. Hence, it developed a program to facilitate both business and customers.

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eBay marketing strategy case study 2021

strategic management ebay case study analysis

Order custom essay Strategic Management: The Case of eBay with free plagiarism report eBay offers wide varieties of products and services for bargain hunters, hobbyists and collectors and sellers, changing the way people engage in trading hence eBay had changed the face of e-commerce from its inception. Its whole business revolves around creating an environment where everyone can come and transact without any second thought of being cheated or misguided in any form… Walmart History This is quite obviously a very far-reaching mission and strategic objective. Without a doubt, Each Net was the best candidate for acquisition at the time. Being a pioneer in online auctions, eBay had no competition and currently has only few strong direct competitors. The Feedback Forum requires feedback to be related to specific transactions and Top Seller status was introduced in 2010 to increase trust in the service. Such strategy was known as co-adoption where eBay diversified the firms into units and then collaborated with individuals within the system. Introduction The business environment of the retail company eBay is evaluated in the report.

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Ebay Case Study Case Study Solution and Analysis of Harvard Case Studies

strategic management ebay case study analysis

There are wide ranges of products like electronics to furniture available for the customers which they are able to purchase easily through online at a much lower price. There are more number of people who are visiting the online store of eBay as it promotes itself through magazines, online sites and the even through word of mouth. Meet Britain's oldest EBAY seller - he's making £100,000 a year. Use of bio degradable and recyclable products in packaging keeps environment safe. After having a clear idea of what is defined in the case, we deliver it to the reader.


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