Case Study: EBay

EBay’s core competency and how it relates to their chosen strategy.

            The company’s core competency is the fact that it has been able to efficiently provide a market for products that usually have no efficient distribution system. The inefficiency in the distribution system is based the fact that there usually is no adequate information such as where to get the goods or the amount of money one is supposed to pay for them. In conjunction with this is the fact that eBay has been able to establish itself as a company whose that can be trusted because of its principles that have over the time guaranteed safety of the goods to both the buyers and the sellers. The company guarantees high transaction protection hence minimum fraud loses to its clients. Its goal and objective of providing an efficient market using the development in information and technology has also made EBay competent. The company did this by providing an online platform through which individuals can trade, this has greatly helped reduce and even eliminate to some extent the inefficiencies that existed before in markets especially of them goods the company deals with.

            Providing online platform for trade is important for the company’s strategy to go global. The current rapid development in technology affects every aspect of humans. This implies that all disciplines have been technologies including trading. E-commerce thought not very common is gaining ground (Martin, 1995). Most consumers now prefer online shopping because the many advantages it offers including the one of being able to buy goods from far off places without having to travel. This proved to be effective especially in goods and services that are being traded across international borders (Seybold, 2001). The kind of goods the company deals with are examples of goods that be traded internationally and also have potential of being very expensive. This implies that a medium of connecting individuals from different countries can be provided by the online platform while the safety of the large amounts of money that may be involved is assured by the company’s reputation of guaranteeing low fraud loses. The company’s competency hence provides high chances of it succeeding if it goes global.

How eBay has decided to configure and coordinate its value chain?

            Business organizations do value analysis so that they determine and understand any constraints to the improvement of their performance or their competitive advantage (Usaid Wiki. 2009). Value analysis also involves identifying opportunities and eliminating or analyzing the constraints before investing is one of the ways of doing this is by analyzing the end market which eBay seems to have analyzed, identified the possible constraints and laid down solutions for them.

            EBay seems to have solutions to all the anticipated problems and challenges.  Some of the solutions the company has are valid and will work. In fact they increase its opportunity of succeeding in its globalization strategy. Others however are beyond the company as it can not control them. They are dependent on other external factors and as such pose as a risk to the company’s strategy of going global. The company however seems to be future oriented. The management understands that the development in information and technology is causing most if not all people globally to turn to technology for almost everything. E-business is also gaining popularity and especially in terms of online shopping (Porter, 1999). The company is counting more on the future than the present. This is evident from the fact that it remains optimistic in spite of it having bought the websites expensively and making very little even after two years. Most of its configurations are based on the future possibilities such as internet being available to more people, individuals having web-enabled phones. It can be concluded that eBay decided to configure and coordinate its value chain the way it did because the company foresees more use of e-commerce in future, more internet coverage, increased online shopping and increased demand and need to sell for the kind of goods it deals with globally. EBay believes that individuals in the developing countries need market for artefacts while those from rich developed countries need a place they can buy them from hence coordination of its value chain.

Whether to characterize eBay’s value chain as virtual or real? Why?

            I would characterize eBay’s value chain as virtual. This is because most of the solutions the company offers to the possible challenges and problems are beyond its control. For example, when faced with governmental trade regulations such as that one of France, the company maintains that it will solve it by stating that it is a United States based company and as such can not comply with the regulations. This can obviously not work as companies operating in foreign countries have to comply with the host country’s regulations in order for them to be allowed to operate. The company also is depending on future developments such as individuals having web-enabled phones, or going to cyber-cafes in the event they have no internet at their homes. This is limited as not all regions in the world have internet network. Neither can all individuals especially those in developing countries who may be potential sellers can afford the web-enabled phones (Peterson, Balasubramanian & Bronnenberg, 1997). The goods involved can be expensive especially where jewellery is concerned and not much trust is given to e-commerce especially in Asia where the company is targeting. Asian countries also have a negative attitude and distrust for anything American. Most of its solutions to anticipated challenges in the end market are re shaky hence a virtual value chain.

If eBay’s strategy is different from what it was ten years ago. Why?

            The strategy is different from what it was ten years ago. This is mainly attributed to the development in technology that has taken the world by storm. Technological developments especially in information and technology have made several things such as e-commerce which includes online shopping possible (Chaudhury & Kuilboer, 2002). The number of people able to access internet has also increased as the network infrastructure has developed. Internet cost has also reduced making communication cheap and fast. Besides this, more people are now ICT literate than it was ten years ago (Peterson, Balasubramanian & Bronnenberg, 1997). This implies that they understand how it functions hence can trust and use it. The strategy therefore has higher chances of succeeding now that it would have ten years ago.

Implications to the challenges identified in the case have for eBay’s strategy – today and in the future.

            Most of the challenges depend on global development.  In the event that the world continues to develop at a fast rate as it currently is in technology and specifically in information and technology, then the company’s strategy will yield fruits (Chaudhury & Kuilboer, 2002). The development however has to be worldwide, not just in the developed but the developing countries as well. More people need access to internet as it is the basic tool eBay is dependent on. Popularity and trust of e-commerce has to increase for this strategy to bear fruits now and in future. More individuals especially those in Asia have to trust Americans as business partners. For as long there is the distrust and hatred then the company can not succeed especially in the Asian countries. The company has to ensure that it establishes exceptional relationships and maintain it principles that are based on trust if it is to succeed with the strategy.

Word Count: 1240.

List of references

Chaudhury, A., & Kuilboer, J. (2002). e-Business and e-Commerce Infrastructure. New York,     NY: McGraw-Hill

Martin, J. (1995). The Great Transition: Using the Seven Disciplines of Enterprise            Engineering. New York: AMACOM.

Peterson, R. A., Balasubramanian, S., & Bronnenberg, B. J. (1997). Exploring the           implications of the Internet for consumer marketing. Journal of the Academy of            Marketing Science, 25, 329–346.

Porter, M. E. (1999). What is strategy? Harvard Business Review, November-December,            61-78.

Seybold, P. (2001). Crown Business Books. New York, NY: Random House.

Usaid Wiki. (2009) Value Chain Analysis. / retrieved 8th May 2009 from             <>

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyhomeworkGeeks
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
The support team was late responding , my paper was late because the support team didn't respond in a timely manner. The writer of the paper finally got it right but seems there was a problem getting the revisioin to me.
Customer 452773, April 7th, 2024
Social Work and Human Services
Although it took 2 revisions I am satisfied but I did receive it late because of that.
Customer 452603, March 25th, 2021
Business and administrative studies
looks good thank you
Customer 452773, March 3rd, 2023
excellent job
Customer 452773, August 12th, 2023
Business and administrative studies
excellent paper
Customer 452773, March 3rd, 2023
Customer 452773, March 21st, 2024
Social Work and Human Services
Great work I would love to continue working with this writer thought out the 11 week course.
Customer 452667, May 30th, 2021
I just need some minor alterations. Thanks.
Customer 452547, February 10th, 2021
Human Resources Management (HRM)
Customer 452773, June 25th, 2023
Criminal Justice
This has been the greatest help while I am recovering from an illness. Thank your team so much.
Customer 452671, May 2nd, 2021
10th grade English
very good
Customer 452773, March 26th, 2023
Great job
Customer 452773, February 13th, 2023
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp