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In: Operations Management

Elements of eBay’s strategy have evolved in meaningful ways since the company’s founding in 1995. View...

Elements of eBay’s strategy have evolved in meaningful ways since the company’s founding in 1995. View the company’s history at www.ebayinc.com/our-company/our-history and other links at the company’s investor relations site (investors.ebayinc.com), and prepare a report that discusses how its strategy has evolved. Your report should also assess how well eBay’s strategy passes the three tests of a winning strategy.

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Because eBay was introduced as an auction web site in a living room in 1995, it enabled people to sell collectibles. It has evolved definitely; from an auction website that enabled people to sell collectibles to expand their product category to nearly anything that could be sold. The policy of EBay has involved purchases from various trading platforms, as well as from firms such as PayPal. The investment approach certainly fails the test on how well the plan blends in with the condition of the client, as the acquisitions enable eBay capture more market share and are customized to the industry. EBay has also created a brand called an eBay company that provides technology for leading retailers and brands. Clearly, eBay is not only sitting on its laurels making the requisite steps to stay successful in its business, allowing them to reach test number 2; it is the approach that allows the organization to gain a sustained competitive edge. If you think about test three; is the technique that generates successful company results all you have to do is look at their latest earnings report where it was announced that their income was up 13 per cent.

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