Essay on The Strategic Strategy Of Ebay

902 Words Dec 4th, 2016 4 Pages
To make their strategy successful, the company, eBay, would have to first establish an organizational structure. Like many of its consumers, eBay experienced a tremendous loss in 2008 due to the so-called Great Recession, which per State of Working America, was a major worldwide economic downturn that began in 2008 and continued well into 2010. By designing and developing an organizational structure that best fits their company, eBay could possibly turn the business and their sales around and begin to operate the business the way Omidyar saw it when he first launched the eBay concept back in 1995.

Evaluation

This case analysis provides an overview of the tactical approach that eBay applied to have as well as keep a competitive advantage in the market of online internet shopping. When Omidyar first started the company back in 1995, he structured the company using only the typical functional design of small businesses, however, for eBay to remain viable in their industry, it is crucial that they acquire a growth strategy. Based on the details in the case analysis, the leadership team decided to consider purchasing other companies that also provided online auctions. Companies such as Half.com, which is an online shopping site, unlike eBay, the sellers offer items at a fixed price – there is no online bidding wars. Items listed on Half.com include but is not limited to: books, textbooks, video games, movies and music.

Again, unlike eBay, the seller is required…

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