Ebay Week 9 (3)

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Pace University *

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490

Subject

Information Systems

Date

Apr 3, 2024

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docx

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Uploaded by JudgeReindeerMaster634

1. eBay pursued growth through its strategy based on the three mentioned components of products, sense of community, and aggressive expansion. eBay had an array of product categories and platforms, and by utilizing a fixed-price format, eBay competed directly with major competitors and penetrated new market space. The variety of products also attracted a range of users, from students to government agencies. eBay emphasized creating trust between sellers and buyers, which was why eBay users were/are willing to send money to strangers across the country. To grow as a global trading platform, eBay increased its market share and revenue through acquisitions/partnerships in both related and unrelated businesses. eBay was also a member of an attractive market- e-commerce. With the growth of the internet came the growth of e- commerce. E-commerce eliminated boundaries such as time and geography. eBay took these ideas and tied it to creating a unique business model. As part of its growth strategy, eBay recognized its inability to grow and compete in certain international markets, and therefore developed ideas as to how to compete in major Asian markets. eBay continued to develop in US and international markets that utilized the internet. As the company continued to experience growth and new trends, eBay continued to adjust its model to remain competitive. 2. eBay has many sources of competitive advantage. First, its array of product categories and trading platforms allowed the company to remain competitive. The different trading platforms (PayPal, eBay Motors, etc.) offered distinct services and target-specific market niches, which broadened eBay's customer base. In addition, effective leadership makes the platform attractive from both the buyer and seller sides. The missions of enabling "individual self-empowerment on a global scale" and employing "business as a tool for social good" show the significance of creating a positive social impact and fostering trust to a company's attractiveness and profitability. The company has "community values," which form the basis for trust. Being an online company, eBay has access to a marketplace that "spans the world." The pandemic seemed to have been a source of competitive advantage for eBay, as increased numbers of US consumers made online purchases. Strategic advantages of e- commerce companies include no time constraints, no geographic constraints, and network economies. eBay is cost-effective and convenient, contributing to the competitive edge it holds. eBay's current position in terms of competitive advantage are supported by the resources and assets they possess- such as leadership, loyal customers, and reach.

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