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EBays Globalization Strategy - Case Study Example

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This research begins with the statement that eBay revolutionized the platform of online auctions becoming the most preferred online marketplace. With innumerable transactions carried out on this e-commerce website, local, national and international trading had an all new meaning and flavor to them…
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EBays Globalization Strategy
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Download file to see previous pages The researcher states that the current economic downfall and the uncooperative financial trends of the dollar are other major factors that have worsened the existing scenario. eBay has now decided to revamp the entire website and measures to provide buyers more protections, sellers with loyalty programs are on the anvil. The core competency of eBay is its online auctions. The online auction marketplace model was the main factor that spelled success for eBay over the years. As the company does not think and act like a retailer, their initial strategy of not dealing in any way with the fixed-price market suited their core competency to a very great extent. Now, with its foray into this unvisited and untapped segment of the market, eBay is facing the dire consequences of not sticking to its original plan. This year eBay reported a revenue decline of around 16%, which it’s the first of its kind for this e-commerce company. An analyst at New York-based Sanford C. Bernstein, Lindsay says “Its a sign that eBay hasn't been able to buck the trend of poor consumer turnout during the holiday season. Unless they can get the core marketplaces business to turn around, and a fair bit of that will depend on the economy, then they're going to have to look at some more strategic measures.” The business model of eBay initially was to mainly help people trade practically anything on earth and conduct commerce through the Internet on a global basis. “A weakness in consumer spending and strength in the U. S dollar has reduced the value of overseas sales.” EBay’s main aim earlier was to make the process of online buying and selling fun using the system of the auction. Their main focus was using umpteen entrepreneurial strategies and business skills to create smart and efficient tools for the website and use a winning strategy to become the most popular and well-known e-commerce company and the best Internet retailer of all time. ...Download file to see next pagesRead More
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