Essay about Ebay Analysis

Decent Essays
Case example
Making eBay work

Question 1
Analyse eBay’s strategic capability using an analytical framework(s)

Threshold resources
• IT server platforms and space
• Offices and facilities
• Appropriate personnel
• Sufficient customers and suppliers Threshold competences
• Account management
• All other general managerial skills
• Sophisticated ICT skills
• Customers and suppliers who are competent

Unique resources
• The biggest on-line electronic exchange platform
• The eBay brand
• First mover advantage
• An active and vocal community of users
• Learning from experience Unique competences
• A unique form of account management that balances central control versus decentralised community involvement
• Leadership
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• What aspects of eBay’s strategic capability are easily copied by new entrants and if so would you copy them and how would you copy them?

The fact that eBay does have some successful competition means that its strategic capability has become less unique. There is a hint in their competitor profile that innovation and perhaps adaptability to different cultures as they innovate is not core to eBay and something which has been developed more successfully by others working within their own national culture. Indeed, eBay rules in its own territory of North America and in Europe. The search capability of eBay also means that niche players do not really make sense, whereas the consumer trust that comes from being a big player is worth everything when trading on-line, as is the notion that whatever you want it will be on eBay because of its size. Thus, the so-called network effects of eBay (the bigger the company, the more successful it will be) and its first mover advantage that has led to this level are key to its success.

The extent to which you consider whether any new competences have been created over time is a function perhaps of how much you buy into their secret being Web 2.0 management. If this is a key to their success then they have probably just built on web management skills transforming them as the web develops. If not, you might say
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