eBay - Case 24 (8)
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How did eBay pursue growth?
Through a number of strategic initiatives, eBay pursued growth while adjusting to the shifting dynamics of the industry and increasing competition. With its distinctive value offer intact, eBay attempted to transform into a full-fledged e-commerce platform after realizing it needed to move beyond its conventional auction model. The business made marketing campaign investments to relaunch its brand and draw in new clients by highlighting emotional connections and a wide range of products that went beyond needs. Also, eBay innovated its offerings by launching programs like the Guaranteed Delivery service to combat Amazon in the quick shipping market. Partnership initiatives like Retail Revival with the city of Akron sought to develop community relationships and empower local business owners. In order to support its international expansion, eBay also localized its websites in many nations,
increased its global footprint, and looked for partnerships and acquisitions. But issues like traffic-affecting SEO changes, security breaches, and activist investor pressure forced strategic changes, like spinning out non-core businesses like PayPal. eBay faced challenges in maintaining growth in the highly competitive e-commerce industry, including changes in leadership and constant competition from up-and-
coming firms like Facebook's marketplace and apps like OfferUp. eBay needed to innovate, adapt, and win back customer trust.
What source of competitive advantage does eBay have, and is that position supported by its resources and assets?
eBay's distinctive business strategy and vast resources give it multiple sources of competitive advantage. Its well-established online marketplace, which encourages community and trust between buyers and sellers, is one of its main assets. eBay stands out from rivals due to features like the Feedback Forum, which allows users to rate and review one another. These features help to establish trust and credibility inside the platform. This feeling of trust draws in many users and makes transactions more efficient. eBay's popularity is further increased by its varied product offers and pricing patterns, which include both set pricing and auctions. These features accommodate a broad range of customer preferences and needs. The company can tap into international markets and reach a wider audience due to its global presence and specialized sites in other countries, which further strengthen its competitive position. Additionally, eBay offers a distinctive value proposition by demonstrating its dedication to helping small companies and promoting economic growth in local communities through strategic alliances and programs like the Retail Revival program. But challenges like security
breaches and activist investor pressure point to the requirement of eBay's constant resource investment and adaptability in order to keep its competitive advantage. In spite of these obstacles, eBay is well-
positioned to handle the changing e-commerce industry and maintain its competitive advantage because of its well-known brand, large user base, and creative initiatives.
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