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EBay Essay

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eBay Case Study

University of Mary Hardin- Baylor

Abstract
1. Analyze the marketing environment and the forces shaping eBay’s business over the years. What conclusions can you draw?
The market eBay takes place in is primarily the Internet market. Around 1995 the Internet market was just beginning. “there will be more than 500 million users by 2003 and a rapid increase in e- commerce turnover, rising from US$500 billion worldwide in 2001 to more than US$3 trillion in 2004” (Fichter, 2003) EBay was a pioneer in Internet market until competitors such as Amazon and Wal-Mart began to sell products online as well. “Online marketing is now the fastest-growing form of marketing” (Armstrong, 2013). The difference between eBay and its…show more content…
This created an environment where consumers were receiving what they desired and also at higher volume creating profits. “ Donahoe- “We have to create a marketplace where we’re helping our sellers give our buyers what they want”” (Armstrong, 2013). Giving the customers what they desire created profit and growth for eBay.
3. Do you agree or disagree with CEO Donahoe that eBay’s turnaround strategy is the best way to go?
Yes I agree with Donahoe’s decision on his turnaround strategy. Change can be difficult but adapting and innovation is the key to success. “ The “power of mass procurement” can be utilized to ensure that only those systems that meet the defined criteria for sustainability are considered for purchase” (Fichter, 2003). Change is something all companies have to go through and the ones that make the transitions the most smooth are the ones that excel.” Given that expert projections suggest that mobile commerce will top $119 billion by 2015, being on top of this trend s a great place to be” (Armstrong, 2013). This is exactly what eBay did, they found a new leader and he lead them through new changes and it is paying off. Yes at first there was “growing pains” but their profits are increasing in areas do to their innovation and changes they had to make.” We have gone from turnaround to offensive” (Armstrong, 2013)
4. Based on eBay’s current developments with PayPal and mobile apps, what
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