• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13
  14. 14
    14

Strategic Management of Ebay

Extracts from this document...

Introduction

Team Case Analysis MAN 4722 To drop-Off or Not?* July-26-2007 Leopoldo Portes Elvis Pena David Perez Statement of Purpose 1. To research the Case Analysis on eBay: "To Drop off or not?" in the topic areas of Strategic Management. 2. To generate a report on these findings using strategies studied and discussed throughout the semester. Strategic Managerial Applications. Table of Contents Introduction 4 Executive Summary 7 Conclusion 13 Sources/ Works Cited 14 Brief Synopsis of Case Analysis & History of eBay eBay, formerly known as Echo Bay technology, formerly known as Auction Web, was the brain child of founders Pierre Omidyar and Jeff Skoll. In 1995 Omidyar was intrigued by the idea of creating an auction site with the feel of an online garage sale Community. Rumors surfaced that Omidyar's wife asked for the techy to create a website for her in order for her to buy, sell and trade into her collection of PEZ dispensers and other rare obscure items. Once the website went online, the garage sale hype created a plethora of activity, forcing Omidyar and Skoll to move the site onto a business account and begin charging users a listing fee. eBay stuck to its roots of "community membership" environment, creating member feedback mechanisms, building a certain level of trust for its end users. In 1998 eBay hired current CEO Meg Whitman, who brought substantial business experience from her Harvard Business school degree and her previous ventures with Pepsi, Procter & Gamble and Bain & Co. ...read more.

Middle

It would behoove eBay to aid in the education, of employees and managers at these stores, since using their great management and organizational prowess they will create social complexity and allow for a consistent culture up and down organization; one voice, one experience. The control provided by these strategic alliances will allow addressing some of eBay's most common complaints; post purchase service in the form of lack of consistency in shipping times and billing errors via requirements in contracts. One last area of concern for eBay and these independents is the variability in pricing structures. If eBay controls these price structures (Create a structured fee schedule for organization), it will be able to maintain fixed costs for consumers in order to challenge the threat of substitutes. In breaking down eBay's value chain and in discussing one other area of concern as per the study, we address web-site attacks, faulty billing complaints and customer service. Given these are considerable weaknesses in eBay's organizational structure the solution could be "Vertical disintegration". In taking this approach, eBay should seek an outsourcing strategy. Given that these services are no longer a source of competitive advantage for eBay or any other organization due to lack of rarity and reduced imitation costs, they should follow in the footsteps of other successful organizations such as Dell in order to concentrate on what they do best; online auctions. By outsourcing these services to specialized companies, they will enhance the user experience and therefore deter any attrition in their overwhelmingly superior customer base. ...read more.

Conclusion

Finally, in terms of demographics and as previously mentioned, the current Hispanic population in the US is projected to increase exponentially throughout the next 40 years. This represents a significant wealth of consumer spending for all companies not only eBay. By capitalizing on the Hispanic culture of trust and loyalty, if eBay can capture the attention of this market early in its development they could position them to be a service provider for the Hispanic community for years to come. The only setback to increased advertising is in terms of expense dollars spent, however based on the foreseeable rate of return on this investment it would be money well spent. Conclusion Based on the analysis conducted the "Vertical Integration and flexibility" suggestion appears to be the more feasible strategic managerial option. Although vertical integration into the drop-off store industry would appear to be a logical step (why share the $20-25 billion potential profits with these independents) based on the uncertainty factor eBay need consider a strategic alliances more specifically non-equity alliances via licensing agreements with these independent drop-off stores to manage this exchange. As indicated this strategy would address some of eBay's major concerns by improving current operations and facilitating entry into a potential segment of the market which hopefully encompasses the 70 plus million of inactive registered users. If eBay can successfully coordinate the education of employees and managers at these stores they will create social complexity and allow for a consistent culture up and down organization; one voice, one experience. They will allow address the issues of post purchase service and consistent pricing structures. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays

  1. Marked by a teacher

    business online

    4 star(s)

    has access to the internet and have the product delivered to their door step. The advantage for the supplier is the location, as the company is an online based business the location of the business doesn't have to be in reach of customers.

  2. Apple Incorporation - Case Analysis

    Distribution related Apple has always been a leader in the use of automated systems and the distribution phase is not any different. Apple operates some of its facilities round the clock and after manufacturing they are automatically feed to a system though a case taper where it is prioritized and sorted prior to being palletized.

  1. Implementation of ATMS at SBI. Banks in India are looking at deploying biometric ATMs ...

    In a dip card reader, the card has to be dipped and removed i.e. placed into the slot where it is read. In a motorized card reader, the card is inserted in the slot and it is taken into the unit and retained there till the entire transaction is completed.

  2. Business Online

    saves them from travelling to their local Tesco/convenience store, another point which they've realised is that purchasing online products are cheaper regardless whether they are food or non-food products, quickly this information was spread nationwide. To attract customers Tesco launched different programmes aimed at different types of audience, for example

  1. Concepts & Principles of International Management - Management Style Manual & Survival Guide for ...

    As for negotiations, Spaniards usually expect the people with whom they are negotiating to have the authority to make the final decision. Another factor that creates a high power distance is how the employees see their employers as superiors. In general, subordinates are required to respect authority, follow orders, and

  2. Critique of Klemperer's 'Auction Design'

    A possible solution to this, as the article mentions is the tactic of hiding certain bits of information from the bidders. The use of the sealed-bid auction can be used so that bidders don't know what the current price/bid is and therefore they won't know what price they can and

  1. E-commerce case study - Online Music Bussiness.

    The market research instruments will be: 1. customer surveys, 2. questionnaires, 3. focus group discussion, 4. Customer feedback. (http://en.wikipedia.org/wiki/Market_research#Market_research_for_business.2Fplanning, [accessed October 3011]). 3.1.3 Target Markets Macaulay and Dennis, 2006 says there?s a sizable and distinctive customer base in the UK.

  2. Investigating Electronic Business. In this section I will be choosing two similar business ...

    Therefore, the business will have to take out contracts with agencies and support services in order to do this. Warehouse is a fairly large company, so it may cost more to construct their site. Advertising: A business that is ambitious will consider using an advertising agency.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work