eBay: The Global Strategy

Pierre Omidyar, a calculating machine programmer, developed the broadcast of eBay and introduced it to the World good Web in 1995. (Daniels, Radebaugh, & Sullivan, 2007) Omidyars goals and objectives in nameing the interface of eBay was grounded on his sentiment of rise the industry of grocery store auctions to wider populations of defileers and sellers that tie-up up through the Internet.Moreover, his idea of an online securities industry for buyers and sellers was based upon his vision of equal contestation among sellers, eliminating the discrepancies on how sellers are competing in the authorized market place structure for the purpose of attracting the vigilance of buyers and overpowering their competitors. For Omidyar, eBay balances the playing field for in every(prenominal) sellers and permits equal opportunities of purchase for the buyers. (Gopalkrishnan & Gupta, N. D. )Although Omidyar was able to negociate the disputation within the realistic(prenominal) demesne of eBay, eBay Inc. was experiencing the surge of competition from an opposite(prenominal) virtual(prenominal) commercial free-basements that were designed under the alike framework of eBays market auction. In addition, eBay, as a blood organization, required to cope with the challenges of the globalization, thus, the development of strong and shelter globalization dodge for eBay as back up by its ticker competency and its put together and coordinated set grasp. (Daniels, Radebaugh, & Sullivan, 2007)The core competencies of eBay manufacture the unique platform or design of eBay as an online marketplace that sets it apart from separate virtual line of work organizations opening its competitive gain in terms of service or oblations, eBays valuing of establishing trust among its clients and assuring the preventative and security of being involved in online auctions facilitated by the organization, the place or entailment that eBay grants market efficiency, a nd one of the primary goals of eBay to establish partnerships with otherwise organizations to foster network benefits and productivity. Daniels, Radebaugh, & Sullivan, 2007) These core competencies have established some of the strategies that eBay has implemented over the years in target to obtain competitive advantage and touch the goals and objectives of the organization. Perhaps the approximately successful schema which has helped sustain the bendth and development of eBay was its opening of services of an online open market for everyone who ask to tie up with the platform of eBay in frame to sell or buy goods or products from polar parts of the world.This has widened the client base of eBay, realizing one of its core competencies, that is its singularity in being able to establish a marketplace that is open to all despite the distance. (Gopalkrishnan & Gupta, N. D. ) In addition, according to a report released by eBay in 2006 in order to discuss its global strategies fo r keep growth and development of the business, through its acquisitions of other organizations, such as PayPal (eBay, 2009a), and its development of other virtual services that assist in the facilitation of services provided by eBay.Some of these services include Skype which is a communication apparatus that buyers and sellers around the world may mapping to communicate. eBay has also realized that in order to uphold its core competency of market efficiency, it needed to implement a multi-branding strategy to capture a larger market population. This was accomplished through its development of Shopping. om and other Marketplaces such as eBay stores, ProStores, and such. (eBay, 2009b) Reviewing the value chemical cosmic string configuration and coordination of eBay, the decision to structure this finicky system was motivated by the platform of eBay considering what drives the business that is, the buyers and the sellers and the act upones that facilitate business practices an d operations.Apparently, the value chain model of eBay gains five tiers of factors or features, starting from the sound aspect of the business, to its management of finances, the human capital of the organization, the technical department of the organization which keeps eBay up and running online, and most importantly, the process and operations involved in running eBay. This process starts with selling, to the transfer of culture from sellers to buyers, the process of auctioning products of goods, the payment, and the review of obligation and dependability of eBay and sellers to provide for the needs and demands of buyers. Schmidl, 2006) The configuration and coordination of eBays value chain was based on the logical analysis of how eBay will take up operations, especially since the organization is run by the buyers and sellers who are involved in the process of keeping organizational operations. The analysis of eBays value chain establishes the fact that it is virtual and not real since the process of merchandise up until peer reviews is completed online.From marketing eBay, to the transfer of information and facilitation of communication amid buyers and sellers, the auction and payment process, until the peer reviews regarding accountability and reliability of eBay and sellers, is done through online tools and applications that constitute the platform of eBay. Perhaps this is one of the legion(predicate) reasons why the particular process set as eBays value chain adds value and advantage to eBay, since it is able to provide services virtually to global networks without offering problems and difficulties to buyers and sellers.The analysis of eBays core competencies, strategies, and its value chain proves that they are no different from what eBay has implemented ten years ago. Until today, the strategies apply by eBay are based on its mission of providing an online open market for everyone to buyers and sellers eliminating competition and the c hallenges that constitute to the establishment of concrete business establishments that operate in the same manner. eBay has make it easy for individuals to operate a business and purchase specific goods or products.However, eBay has to pertain in developing its platform if it hopes to grow in the following years, based on the threats and challenges posed by some issues that eBay clear needs to addressed as mentioned by Daniels, Radebaugh, and Sullivan (2007). These challenges suggests that eBay should be able to raise its ethnical sensitivity, addressing the problem of language barriers, the implementation of legal laws and policies to regulate overall eBay operations, and its modification of its virtual value chain, applying concepts of real value chain in order to address the digital divide.