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Ebay: Fixing an Online Marketing Pioneer - Case Study Example

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But the higher growth has its own challenge. EBay also faced various challenges after enjoying uninterrupted growth for the first 15 years. At the beginning of 2008 EBay started losing market to…
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Ebay: Fixing an Online Marketing Pioneer

Download file to see previous pages... Then with the changing trends EBay also changed its marketing strategy by expanding the scope of business and acquiring different foreign dot.com sites. It also came up with EBay stores. All these strategies were very successful for EBay until 2006. In the year 2007 recorded a slowing down in growth for EBay as the company stopped innovating and consumer behaviors are also shifted towards a new way of online shopping. As the three years revival strategies the then CEO Donahoe prescribed some medicines like reducing of top level hierarchy, moving from auction dependency to secondary market and divesting from non core market place.
EBay is one the most talked about internet story of the history. When the company came up with the new revival strategies old traditional sellers of eBay protested very hard and accused EBay for being bias towards big sellers. Earlier buyers did not get products in a fixed price, services were also consuming lots of time and free shipping was mot offered to the buyers. These were main reasons were going away from eBay. These changes in the nature of EBay seller initial financial results of the EBay were not impressive but the change in the nature of EBay seller affected the value creation of buyers positively. As the time passes by financials of EBay were returning into stable position. It means inspite of initial hick-ups changes in the nature of seller impacted positively as the value creation of the buyers are concern. Buyers were aging shifting towards the company. It is very clear that change in the nature of sellers were a good and bold decision for the buyer’s value creation (Skip, 2005).
Yes, I do agree that the turnaround strategy of CEO Donahoe is the best way to go. Modern business world is ever changing. Change is the only constant thing in the world of business. In this case CEO Donahoe has come up with great reforms in EBay’s traditional strategies. All those strategies initially faced some difficulties but in ...Download file to see next pagesRead More
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