Before addressing the tasks below, read carefully the following summary of eBay produced by Marketline (2012 and 2014).
Background
eBay was formed as a sole proprietorship in 1995, when Pierre Omidyar, a computer programmer,
wrote the code for an auction website that he ran from his home computer. The company was incorporated in California in 1996.The company was reincorporated in Delaware in 1998 and became public in the same year. Around the same time, America Online (AOL) and eBay signed a three year agreement under which AOL received guaranteed payments totalling $12 million from eBay. The new alliance secured eBay a large potential customer base in the form of AOL members. The company acquired several entities in 1999. eBay acquired Butterfield & Butterfield, an auction house; Alando.de, Germany’s largest online auction house; and Kruse International, one of the largest land-based auctioneers of collectible cars in the world. Kruse Internationals acquisition provided expertise in the automobile market and led to the launch of eBay’s collectibles and used
cars categories online.
Since its inception, eBay has continued to expand every year through a variety of joint ventures enabling them to access new markets, technologies and knowledge throughout the world which has in turn enhanced their own capabilities for sustainable competitive advantage. For example, during 200506, eBay acquired several online sites to expand its business. The company acquired Kurant, a provider of e-business software for small and medium-sized businesses, and Rent.com, an internet listing website in the apartment and rental housing industry; Gumtree.com and LoQUo.com international classifieds websites; Shopping.com, an online comparison shopping resource; Skype, a Luxembourg based company and a provider of software that enables voice over Internet Protocol calls between Skype users online; and Tradera.com, an online auction style marketplace in Sweden. In the same period, the company launched eBay Poland (www.ebay.pl), (Marketline, 2012).
Since its inception, eBay has continued to expand every year through a variety of joint ventures enabling them to access new markets, technologies and knowledge throughout the world which has in turn enhanced their own capabilities for sustainable competitive advantage. For example, during 200506, eBay acquired several online sites to expand its business. The company acquired Kurant, a provider of e-business software for small and medium-sized businesses, and Rent.com, an internet listing website in the apartment and rental housing industry; Gumtree.com and LoQUo.com international classifieds websites; Shopping.com, an online comparison shopping resource; Skype, a Luxembourg based company and a provider of software that enables voice over Internet Protocol calls between Skype users online; and Tradera.com, an online auction style marketplace in Sweden. In the same period, the company launched eBay Poland (www.ebay.pl), (Marketline, 2012).
eBays ongoing expansion programme through inorganic means continues up to the present with the acquisition of many entities, like StubHub, an online marketplace for the resale of event tickets, and GittiGidiyor.com, an online marketplace in Turkey; and StumbleUpon, an early-stage company that helps people discover and share content online. In Germany, eBay acquired ViA-Online, an auction management software company which operates Afterbuy.com. In Thailand, eBay entered into an agreement with Sanook! an online portal, to launch a regional e-commerce site. The site enabled individuals and businesses in Thailand, to participate in local and international trade through eBay’s global web sites, (Marketline, 2012).
In 2008, the company launched a new application in 2008eBay Mobile available for iPhone and iPod Touch users in Europe. The new free application enables Apple users to bid, buy and pay for items directly from their mobile devices. Four years on, In February 2012, eBay entered into a partnership with Three.co.uk to deliver mobile devices pre-loaded with eBay apps. In March 2012, PayPal announced PayPal Here, the first global mobile payments solution that allows small businesses to accept almost any form of payment. The new service included a free app and fully encrypted thumb-sized card reader, turning any iPhone, and Android smartphone, into a mobile payment solution. In the same month, StubHub launched its first international site in the UK.
The company enables sellers to ship with UPS and has simultaneously launched a new iPhone app
that supports UK buyers and sellers.
During the latter part of 2012, eBay partnered with Xiu.com, a Chinese online fashion and luxury retailer, for launching a new and fully localised online shopping experience, called eBay Style in China. In the same month, eBay and AEG entered into a partnership to facilitate multiple venue sponsorships and technology integrations with the intention that a number of eBay companies and initiatives will be included in elements
of the multi-year partnership. Beginning in the first quarter of 2013 with StubHub becoming the exclusive
secondary ticketing solution for AEG venues and AXS Ticketing, the ticketing platform of AEG. With PayPal becoming one of AXS Ticketings new methods of payment while BandMerch (AEGs music merchandise company) beginning to extend its rosters of over 135 artists to the eBay Marketplace.
In further expanding its global presence, April 2013 saw the launch of eBay.com in Russia enabling shoppers to search in Russian or English and complete payments using PayPal also translated for Russian buyers. In November 2013 Microsoft opened a new store on eBay and in the same month eBay and Westfield Labs partnered with Rebecca Minkoff and |TOMS to introduce innovative digital storefronts in the Westfield shopping mall in San Francisco. Whilst creating even greater consumer value, this partnership also enabled eBays consumers to enjoy a curated shopping experience, pay with PayPal and arrange free home delivery or pick up within the mall of selected items.
In February 2014 eBay acquired PhiSix, a computer graphics company creating 3D models of clothing from photos and other sources to simulate the behaviour of the garments. This acquisition will enable consumers to understand the fit and movement of clothes in an online shopping environment. Around the same time eBay also announced plans to invest in Snapdeal, an Indian online marketplace, if successful the investment would accelerate growth in emerging markets and further securing eBays global e-commerce leadership. Additionally in the same month, PayPal and Samsung announced a collaboration to enable consumer fingerprint authentication, enabling Samsun Galaxy S5 users to login and shop at any merchant that accepts PayPal on mobile and in-stores with their fingerprint what other growth opportunities exist for eBay to cease?
(Source: Adapted from Marketline, 2012 and 2014).
Tasks:
Write a report (4000 words maximum):
? Using appropriate theoretical frameworks/techniques, identify the main strategic issues of maintaining a global competitive position for eBay or another player of your choice in the online marketplace
? Consider specific theoretical matrices and frameworks to evaluate specific corporate level strategic directions taken by your chosen organisation to date in order to develop and sustain its global competitive position
? You should also demonstrate an understanding of the wider implications of these strategic decisions on different areas of the organisation. You should also take into consideration a maximum of 2 appropriate specific topics, for example, leadership, innovation, culture, technology, CSR and sustainability
? Following the above analysis and discussion, make 3 appropriate recommendations for your chosen organisation for on-going sustainable competitive advantage
NB. The presentation of ideas with the use of a correct report format and a wide level of reading with correct referencing and correct reference list layout will enhance your responses to the abov
