EBay Strategy: Initial and Current Business Structure

Running head: E-BAY STRATEGY 1

E-BAY STRATEGY 7

E-Bay Strategy
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1. Compare eBay’s original business structure with its current structure in terms of business.
Companies that have been there for long periods of time have faced many challenges over time and they have gone through a series of transitions. The transitions are triggered by many factors that appear over time especially because of changes in market taste and the rampant changes in technology. As of today change in consumer, taste is not so important a factor when it comes to influence on company structure. However, there are things that prompt the companies to have their models change from one thing to another as in the case of eBay. EBay has had a long business history and clearly, its original structure is way different from what exists today. Originally the company was modeled to be an online auction site where people would sell their products to any person at negotiable prices. As in the actual offline auction the company was open to people selling their products to the highest bidders (Walia, & Zahedi, 2013).
The company only majored in auctions and had actually earned itself a heavy reputation in this field. It is not strange that even today auction is usually related to eBay. Over time the company has experienced challenges because of the auction setting that it is based on. The company mainly faced the issue of stiff competition from Alibaba and Amazon and thus it had to change its system to suit up and face the challenge that it was facing. From this, the company had to figure out a way it could handle this issue. The company, therefore, decided to change from the auction platform and revert to a competitive form that could stand against that of the competitors (Walia, & Zahedi, 2013). The company today has majored on changing its operations to economic commerce. This is way different from the original setting of the company which was auctioneering.
2. Describe problems being faced by eBay today. Explain how eBay is trying to handle the problems.
EBay is currently going through a lot of problems caused by the many forces that have been triggering its existence. Today the company faces the challenge of having PayPal withdraw its involvement with the company. The two companies have been linked to being one body ever since the beginning and PayPal has been viewed as a key factor for the contribution of the success that eBay has been recording over the years (De la Merced, & Sorkin, 2014). The issue of PayPal moving away has indeed been a threat for eBay because it is true that PayPal has been a perfect lifting partner for the company and therefore the impact can be felt heavily. The split has made people have doubts about the strength of eBay alone and thus they could end up using alternate methodologies of making purchases online and ignoring eBay on this basis. This split has cost eBay a good drop because it will not enjoy the privilege that it had when it in joint. EBay has also suffered from the step by google to drop the search ability and this has again a tough stage in eBay’s time of operation (De la Merced, & Sorkin, 2014). This move by google has led to reduced search abilities in link to the company thus there has been difficulty in working out a way of getting its information for the company.
EBay has resolved to continue its operations despite PayPal backing as an independent unit. This issue is to be reverted not by introducing a new platform for eBay transactions but instead eBay is to continue using the same means of payment. Instead of introducing another means of payment the company will try and convince people that there it is still in its hey glory even without PayPal thus people will scrap all doubt about eBay’s strength. In the case of google reducing search abilities and results that are related to the company, eBay will sure suffer and there is definitely no way of controlling google. EBay will, therefore, start other ways of providing information to its customers and this is a good strategy because they cannot depend on google which is simply not doing enough for them. EBay will, therefore, try to use other search engines to place its information ready for view for their customers (De la Merced, & Sorkin, 2014). The company is also boosting its commitment to electronic commerce and this s currently working out well.
3. Is eBay going to implement good solutions? Why or why not? Would you consider any other solution for eBay?
The decisions that eBay is seeking to implement are good and there is no dispute that they will work out to be of great advantage to the company. They are good solutions because they will end up being appropriate solutions for the good of the company and thus they are worth the risks that the company may go to see to it that they are reached (Ofili, 2016). The extent the company can go for these solutions is however essentially limited by logic to avoid causing more tear on the company than the repairs they will. The solutions are good on the outside but I do not consider them entirely appropriate. The issue on PayPal exiting the union that seemed to have existed can be handled as per the plan because the company will need popularity and trust from its customers. This strategy does this because eBay will try to win the trust of people by convincing them that they are indeed good in providing services independently (Ofili, 2016). The trust earned from this strategy will prove to be important to the company because of other future activities that may require loyal customers to pursue.
On the case of reduced search abilities by google trying out another search engine could be a good move but again it might end up being of no use because no search engine is common as google. However, handling the same issue by having a good electronic commerce system will be a better way than opting for another search engine. The reason for disapproval of another search engine is because if eBay loses the chance to be in google it will sure be missing out on a lot of opportunities. On this basis, I would highly recommend that the company does not hesitate to use the money on investing in the electronic commerce and this will sure lift its business up (Ofili, 2016). When the business has picked google will, without a doubt, consider increasing the business searches linked to eBay. This increasing of information from google will not happen if the company rushes to getting to have its information availed to the customers by use of a different search engine. I would not recommend any other solution in dealing with the withdrawal of PayPal because it has worked out conveniently but the company should consider using advertisement (Ofili, 2016). The reason for advertisement is because the company needs to gain the trust of the people fast and this could work out just perfectly.
4. Who competes strongly with eBay, how is eBay’s strategy useful in dealing with the competition? Is there anything unique from eBay for its customers?
EBay being a major brand in consideration of online brands faces a lot of competition from many other online brands. There are many businesses taking to the internet to increase their business activities and thus the competition for eBay is increasing by the day (Teng, et al, 2014). However, the brand being big obliviously is challenged by the large number companies in this sector too. The major companies that compete with eBay are Alibaba, which is based in Asia but has recently launched its operations in the United States. The company is large and its strategy is modern thus is sure a threat. Amazon is supposedly the biggest challenge faced by eBay because it is a common place for online purchases and a destination for many people who desire to trade. Walmart is the other competitor who is just entering this platform of trading but due to the massive size and assets of the company it becomes a threat to the eBay and a suitable competitor (Teng, et al, 2014). Walmart is the company that runs most supermarkets and is the largest retail company, it has recently been said to have the fastest growing electronic commerce platform thus is sure a competitor.
EBay’s strategy will give it a fighting chance because the other companies have not invested heavily in mobile trading which eBay has put a lot of effort in. This will allow people to have quick access to the company’s trades through their phones and thus eBay will have a good moment for laughter (Teng, et al, 2014). By use of mobile trading, eBay will be offering a program unique from the others who have not invested in this sector of electronic commerce.

References
Ofili, O. U. (2016). Internationalization: Choosing the right entry mode: Lessons from eBay’s strategy in China. European Scientific Journal, (1), 202. doi:10.19044/esj.2016.v12n1p202
Bozman, C. S., McPherson, M. Q., Friesner, D., & Teng, C. (2014). Brand equity effects on bidding strategies in an online environment: evidence from eBay coin auctions. International Journal Of E-Business Research, (2), 1.
Walia, N., & Zahedi, F. M. (2013). Success Strategies and Web Elements in Online Marketplaces: A Moderated-Mediation Analysis of Seller Types on eBay. IEEE Transactions On Engineering Management, 60(4), 763-776. doi:10.1109/TEM.2013.2272194
De la Merced, M. J., & Sorkin, A. R. (2014). An about-face at eBay in PayPal spinoff plan; Payment service freed to pursue own strategy, and investors applaud. International New York Times.