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Strategic Capability Analysis: eBay - Case Study Example

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 The study " Strategic Capability Analysis: eBay" provides a critical analysis of the strategic capabilities of eBay and how they can be utilized to achieve sustainable competitive advantage. The core strategic capability concepts will be discussed and an analytical framework will be provided.  …
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Strategic Capability Analysis: eBay
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Download file to see previous pages Various research scholars have segregated resource capability into three portions such as tangible, intangible and human resources and also suggested that firms should use all three resources alternatively or simultaneously to achieve competitive advantage (Barney, 1991). In general, the resources in an organization can be divided into the following categories.
Strategic capability can be further differentiated on the basis of their threshold level and unique abilities which provide sustainable differentiations. Threshold resources are fundamental or ground level resources needed by an organization in order to meet the basic requirements of customers. On the other hand, unique resources strengthen and stabilize the competitive advantage (Hamel and Prahalad, 1993). These resources are extremely difficult to imitate as well as obtain. Threshold competencies are processes and activities which satisfy the basic customer needs. Unique competencies, on the other hand, provide a competitive advantage. According to Johnson, Scholes, and Whittington (2008, p.97), core competencies “are the skills and abilities by which resources are deployed through an organization’s activities and processes such as to achieve competitive advantage in ways that others cannot imitate or obtain.” On the basis of the above analytical frameworks, various strategic capabilities of eBay have been analyzed. In order to maintain and promote its level of success, the firm boasts motivated human resources. The company provides a favorable environment to work by satisfying psychological needs such as safety, career growth prospects, and a flexible working environment. As a result, the workforce is oriented towards the objectives and goals of the organization providing substantial benefits to eBay. The company also focuses on external customer satisfaction with the application of its strategies capabilities. ...Download file to see next pagesRead More
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