eBay Corporate Strategy (Essay Sample)

EBay Corporate Strategy
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EBay Corporate Strategy
EBay is an internet consumer-consumer business entity founded in the year 1995. The firm’s headquarters are based in San Jose, California. Currently, eBay had more than 100 million members from all over the globe registered in its databases. The corporate mission is to ensure a provision of a global trading platform where everyone has a chance to trade anything in his or her possession. EBay’s success in recent years is centered on a solid corporate strategy renewable periodically to meet the evolving needs of online customers (Hadi, 2012).[The slides contain adequate information about eBay, its formation, yearly gross income, and expenditures.]
Five elements make up eBay’s strategy for sustainability of its growth. Firstly, eBay targets to broaden its current trading platform to accommodate a new wave of customers from the developing world, especially those that recently gained the middle-income status. Secondly, the organization’s management intends to foster eBay community’s affinity by enhancing its features and the overall functionality within its internal business environment (Naz, 2015). The level of competition in technology industry—especially online marketing and ecommerce—has reached a record level. EBay cannot launch an effective competition if an expansion of value added services is not added to a list of eBay strategy elements. Besides, there is a need to continue the development of American and global market segments.[SlideShare contains a wealth of information on eBay's corporate strategy and its elements. The author demonstrated his expertise especially on the alliances that eBay is a member.]
It is understandable that in today’s business environment, success is hardly within reach unless business alliances are forged with firms that have similar mindsets. As such, eBay has an impressive portfolio of more than 250 strategic business and trade alliances. Some firms in the alliance include yahoo, America Online, Compaq and Walt Disney. On the other hand, eBay fiercest competitors are uBid, Amazon, Yahoo Auctions and most recently Alibaba.
EBay has a myriad of problems facing its operation both currently and in the near future. First, the number of sellers nearly doubles that of buyers. While this problem is considered a result of poor global economic performance, the organization is prompted to source for ideas for an equitable balance of operations. In addition, eBay (like any other online business platform) faces constant security issues and scares emanating from payments and auction process. The fact that the internet is an open-ended platform accessible to anyone implies that fraudulent business deals cannot be ruled out for eBay. Other problems include category changes, accommodation of power sellers and integration of sellers with professional backgrounds.
SWOT Analysis
EBay's many years of operations have earned it a lasting brand. In fact, the business entity is one of the most recognizable global online auctions. Its public trade operations expose it to millions of clients worldwide (Jurevicius, 2015). Moreover, eBay is well-reputed as an entertainment site with zero inventories. All these strengths--if properly exploited—can ensure sustainability and long-term growth. However, weaknesses such as lack of dividends on stock, weak marketing and promotion, cluttered website and weak B2B (business-to-business) market threaten business survival.[Information about the strengths and weaknesses of eBay as at 2013 is highlighted in the website. The author is an expert in the field of e-commerce as seen in his articles on the website. He has also analyzed the performance of eBay rivals such as Amazon and Alibaba.]
Recently, eBay acquired Yahoo (Naz, 2015). The deal presents a unique opportunity for the corporation to widen its reach. For example, eBay’s services can be introduced to millions of yahoo users via a negotiated marketing agreement. Furthermore, people’s lifestyles are changing rapidly due to technological transformations. As the globe inch in towards full computer literacy, firms like eBay specializing in e-commerce can grab the...