eBay is by most measures one of the most successful pure-play Internet companies. It has been very successful in creating the world’s largest person-to-person trading network. Its future growth is being driven by entry into foreign markets (in Europe and Asia) and evolutions in its business models (such as the launch of fixed pricing). This raises several interesting managerial issues for eBay which are captured in the case study.
The case allows for a discussion of the following aspects: 1. Consideration of additional business models such as corporate stores, fixed prices, etc. 2. Consequences of the above on strategic position, customer segment focus and dilution of core business model. 3. Management decision making under uncertainty.
- Online Marketplaces
- Business Models
- International Strategy