Ebay's Background Of Ebay

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EBay’s Background In 1995, Pierre Omidyar started a business called Auction Web that allowed people to buy and sell goods on the internet. A year later, in 1996, Omidyar added a partner Jeff Skoll and transformed their business into eBay. Two years later, they had hired Meg Whitman to direct their corporate strategy to accelerate their growth. Whitman had brought many assets to the company with global marketing and management experience. Soon, she became President and CEO of the eBay. It became one of the most successful websites, with 233 million registered users. By 2007, the average user of eBay spent about 2 hours a month on the site. Along with the success of eBay, Whitman also spent $6 billion of expansion by acquiring different…show more content…
Business Analysis: Identify EBay’s Problem As you are able to tell, eBay is on the decline and are in need of a new strategy to revive the company. The first step in solving a problem is identifying the problem. I believe that there are two main problems that eBay needs to address in order to become successful. The problems are: eBay expanded in the market too fast, and they are now facing growing competition. Right from the beginning you can tell the Whitman’s (former CEO) main focus was on company growth and profit. So, during her reign, she had invested $6 million in expanding their company by accruing companies like Skype, PayPal, StubHub, and other businesses. This was an issue because they invested a lot of money in growth and investments, while they were not focusing solely on their eBay business; its services and customers. This makes me believe that eBay’s goal was profit, and were not paying attention to the wants of their customers. This is a huge problem because the driving force behind any successful retail business is solid customer base. The second problem is their competition in their market. EBay was one of the first successful e-tailer to enter the market, and on-line shopping was just becoming popular. This means that eBay did not have to concern themselves with too much competition. However, as technology use increased more and more e-tailing sites entered the market, and the competition began to grow
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