Case Study on Ebay
Case Study: eBay, Inc.: Bidding for the Future
Jenni Butler
Strategic Management MGT4070 S01, Week 10, Assignment 2
July 30, 2012
Instructor Dr. Erik Aguilar
Case Study: eBay, Inc.: Bidding for the Future eBay, Inc. (eBay) is the largest name in online retail and auctions. They have a good solid history and have established creidtbility. They are truly one of a kind at this point in the game. New auctions sites are emerging however they are not to the level that eBay is. In this case study we will look at the history, governance, and recommend actions for eBay.
External Forces
General
The largest issue that eBay is currently facing is much like every other business, the poor economy. The economy being in the horrible state that it is has made it hard for any business to survive let alone grow. In addition it brings up the issue of efficiencies, meaning operating at maximum efficiency that is vital to company survival. (Hitt & Ireland & Hoskisson, 2010)
Another thing that eBay faces is the government tax policies. This is one huge advantage that they have right now. The government is currently looking at creating a law for online retailers when it comes to taxes. eBay would than be required to collect tax according to the state the the buyer lives. (Hitt & Ireland & Hoskisson, 2010)
Industry
eBay currently also has industry threats. The hardest is the fast-cycle industry. They must respond to this quickly so that they do not sink. This begins at the CEO level and down. (Hitt & Ireland & Hoskisson, 2010)
New competitors are attempting to come into the market. Thus far eBay has done a great job of being stronger and not letting them get a foothold. We have seen many different attempts including Amazon. However the history of eBay is what helps them to stay on top. (Hitt & Ireland & Hoskisson, 2010)
Competition
What is worse than the industry sneaking up on them is competition. They currently do not have any competition as previously stated
Jenni Butler
Strategic Management MGT4070 S01, Week 10, Assignment 2
July 30, 2012
Instructor Dr. Erik Aguilar
Case Study: eBay, Inc.: Bidding for the Future eBay, Inc. (eBay) is the largest name in online retail and auctions. They have a good solid history and have established creidtbility. They are truly one of a kind at this point in the game. New auctions sites are emerging however they are not to the level that eBay is. In this case study we will look at the history, governance, and recommend actions for eBay.
External Forces
General
The largest issue that eBay is currently facing is much like every other business, the poor economy. The economy being in the horrible state that it is has made it hard for any business to survive let alone grow. In addition it brings up the issue of efficiencies, meaning operating at maximum efficiency that is vital to company survival. (Hitt & Ireland & Hoskisson, 2010)
Another thing that eBay faces is the government tax policies. This is one huge advantage that they have right now. The government is currently looking at creating a law for online retailers when it comes to taxes. eBay would than be required to collect tax according to the state the the buyer lives. (Hitt & Ireland & Hoskisson, 2010)
Industry
eBay currently also has industry threats. The hardest is the fast-cycle industry. They must respond to this quickly so that they do not sink. This begins at the CEO level and down. (Hitt & Ireland & Hoskisson, 2010)
New competitors are attempting to come into the market. Thus far eBay has done a great job of being stronger and not letting them get a foothold. We have seen many different attempts including Amazon. However the history of eBay is what helps them to stay on top. (Hitt & Ireland & Hoskisson, 2010)
Competition
What is worse than the industry sneaking up on them is competition. They currently do not have any competition as previously stated
References: Hitt, M. A. & Ireland, D. R. & Hoskisson, R. E. (2010). Strategic management: Competitiveness and globalization, concepts and cases, 9th Edition. South Western Educational Publishing. South University Online. (2012). MGT4070 S01: Strategic Management: Week ten. Retrieved July 28, 2012, from: http://myeclassonline.com