In the News Wk 2

In the News Assignment

EBay’s Strategy for Taking on Amazon

DeVry University

EBay’s Strategy for Taking over Amazon

Since the late 1990s, the internet has become the world’s biggest shopping ground with Amazon.com leading the way. However, even though the internet has become such a powerful tool in conducting business, sources indicate that we still make 90 percent of all our purchases offline (Himmelman, 2013). With such a huge source of revenue waiting to be tapped or swayed to online purchases, EBay executives are fixed on taking full advantage of available resources to get the upper hand on Amazon. The object of this paper is to look at EBay’s strategy to overcoming Amazon.com and becoming the largest and most profitable online retailer.

Not to be outdone, Amazon is still leading the way in the digital age in maximizing its efforts to drive retailers out of business (Himmelman, 2013). In fact, recently Amazon has proposed plans to make deliveries with drones. One of the established ways Amazon is flexing its enormous resources is through its mobile application. For goods that need customers to try on, Amazon has released an application that includes a barcode scanner so that customers can compare prices while they are in a different store and then they can order the same product from Amazon by the click of a button. This form of doing business has gained the term, different vendor show rooming (Himmelman, 2013). Today Amazon has become such a huge household name that, for most people especially in the U.S. alone, Amazon holds so much power that it is the habitual place to purchase stuff online.

EBay on the other hand is not taking second place without a fight. Since 2008 when current CEO John Donahoe took over, EBay has gone through a revamping of it services (Himmelman, 2013). Before 2008, EBay was simply the biggest online garage sale. Mr. Donahoe has led EBay to make partnerships with big retailers such as Macy’s, Target, Toys R Us, and Home...