Ebay Global Strategy

EBAY GLOBAL STRATEGY ANALYSIS CASE STUDY

EBay Global Strategy Analysis

EBay which is an online trading platform was found over Labor Day weekend in 1995 by Pierre Omidyar, who is a computer programmer. Today, eBay becomes one of the world’s largest online marketplaces with its impaction around the world. EBay expands its international business in 39 markets.

Since the first date of publishing to public, although eBay has continued to innovate to meet customers’ requirement, eBay’s value proposition has not changed. EBay’s core competency is providing a useful online platform where links buyers and sellers. It allows peer-to-peer trading in an auction format and the value of goods that are soled determined by the market. It helps to uphold the principles of trust and safety. Customers can be guaranteed low fraud losses and high transaction protection. EBay focuses on market efficiency by applying high technology in its e-commerce system. With aims to satisfy customers, EBay attaches special importance to develop tools and technologies to assist customer in online trade.

EBay has decided to configure and coordinate its value chain by developing all necessary tools and technologies to assist buyers and sellers in transaction. By providing a platform for online trading, EBay acts as a link between buyers and sellers. All commodities and goods listed in EBay webpage are set for buyer auction. When biding completed, EBay will suggest payment methods and shipping terms and cost. EBay manages its value chain to support customers by setting average auction prices together with maximum prices in case buyers would like to buy goods immediately; providing many ways to make payments; providing shipping methods and lowest shipping cost; and guaranteeing for goods quality with 90 days. Beside that EBay has continued to innovate and connect people. The most important points in their innovation are acquisitions of PayPal in 2002– an online financial...