Strategic management ebay case study analysis. Case Study: EBay 2022-12-27
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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
In addition, the quantitative data in case, and its relations with other quantitative or qualitative variables should be given more importance. Marketing, New York: McGraw-Hill, 2004. 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. However, if there are many suppliers alternative, suppliers have low bargaining power and company do not have to face high switching cost. Marketing strategy: From the origin of the concept to the development of a conceptual framework. For example, by including more accurate descriptions with better pictures and avoiding excessive shipping charges. Undoubtedly, many people do not make online purchases because of the difficulties associated with transportation.
Works Cited Kazmi, Singh. Introduction to the special issue information technology in retail: toward omnichannel retailing. The company should compensate for the reduction by increasing the final value fee. Increase services and product portfolio through acquisition 4. Strategy for development of new market has not been so effective. Our Company - EBAY Inc. For example, eBay is expanding their role in platforms and mobile payments.
EBAY offers some unique features to the seller, which enables them to display branded and non standard goods unlike other competitors. It is easy to enter into this market. However, during 2015-16 company has taken decision to change strategy to reduce the threat of new entry. Size also matters, another motive for merging is that bigger companies are more likely to raise capital faster and better that smaller companies. It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another.
There is also that person to person or buyer to seller communication that different from other site. Harvard Case Study Solutions STEP 2: Reading The Ebay Case Study Harvard Case Study: To have a complete understanding of the case, one should focus on case reading. EBay is now facing competition because other sites are now building their sites around some of the cons of the eBay giant. To address a valid set of strategies there is a need to complete a SWOT matrix. We need to get people to consider eBay in a completely different way. Moreover, UK may loss the opportunity to trade in Free Trade Area in European Union.
In 2008, Donahoe took over as the new CEO of eBay. As we know, the success did not turn out to be long-lasting, despite the fact that in first few years the performance of the company was brilliant. It is hard for eBay to beat Taobao because Taobao continue to developed themselves and improved themselves. With so much competition, you need to stand out. Meet Britain's oldest EBAY seller - he's making £100,000 a year. As per the second quarter-2016, financial report of eBay the volume of merchandise is worth 20. The problem that eBay faces currently is creating a business plan to maintain their position as the leader in the online auction industry while establishing a place as a retailer of choice in the fixed price e-tail market and continuing to exceed profit levels.
How did eBay pursue international growth? The company eBay meets the environmental needs. 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. PayPal was bought so as to help eBay in getting the payments quicker and help customers have a safe and reliable payment option. The high barriers to entry and exit, large sunk costs and a few large dominant firms operating the market, has made it challenging for any potential competition. In eBay you can find practically find and purchase anything sometimes directly from the manufacturer skipping the middleman and the retailers making the products cheaper and more affordable. Following this model, the company started to show description of product and attractive visualisation, which motivated customers to buy product from EBAY site.
Ebay Case Study Case Study Solution and Analysis of Harvard Case Studies
Environmental factors: The business operation of EBAY is performed by transaction of goods between sellers and buyers through this online platform. Moreover, the company should expand its market share by providing advertising and shipping services, as well as, joining new markets. If the customers can be convinced that purchase through online retail store would give them cost benefit, this business may be popular in long run. Objectives and strategy of eBay The overall eBay aims are to increase the gross merchandise volume and net revenues from the eBay marketplace. Culture, stakeholder analysis and ethical issues 5 b Recommendation for future development 7 i. Therefore, the company needs to maintain Environment safety law in packaging, importing and shipping the goods.
Case Study and Strategic Management of eBay Proposition
Furthermore, it helps the company to avoid high competition in overseas markets. Mergers allow companies in a particular industry to grow rapidly without the necessity to create another organization. Sustainable innovation, business models and economic performance: an overview. Even charities such as Oxfam now have an eBay service where they sell high-value items contributed by donors. There will be more consumption leads to carbon dioxide emission and thus a more polluted environment is created.
Overtime EBAY has improved the functioning of website. Declining economic growth is another major threat that the company is facing. Basically, eBay introduced several crucial innovations tailor-made for the internet at the business level, a strategy which was conceived to be an improvisation. The company will come up with more number of inline stores in other countries, through increased portfolio through acquisition. When eBay acquired 33% shares of Each Net in 2002, it seemed to be hugely successful, because in year 2003 the value of Each Net had doubled and market share had rocketed to 85% - this initial success encouraged full acquisition of Each Net.
