Ebay global strategy analysis - Essay Example

The question is, "Why is this a popular place and why are they so successful?" When we look at eBays core competency we are looking at what makes it work. Why do people come to this site to sell products and services? What about eBay gives it a competitive edge over the rest of the "clone" auction sites and why are they successful despite the fact that they have raised their fees? eBay decided when they started that they would become part of the auction market. They had to decide what types of products they would allow and what would happen along the way.

eBay has worked very hard to become a leading provider of online sites for auctions. They provide a way for customers to trade with other customers around the world (Coghlan, Pauley, and Scott, 2008, p. 9). Because they also have business people at their helm they have been able to create a stronger market share. According to Decot and Lee (2006) eBay has experienced managers who are savvy in business. Some have referred to them as a "tech company run by business people" (Decot and Lee, p. 8).

Because of this eBay also is cautious as it takes on new ventures. They want to make sure that if they move forward, they can predict that they will be number one or two in that market (Decot and Lee, p. 9). Another core competency is the fact that they have become the largest online auction site. As of 2006, they had 94.9 million users who were registered in more than 150 countries (Coghlan, Pauley and Scott, p. 9). They have increased their market share in the United States and have over one third of the U.S. population trading regularly on eBay.

eBays logo with the variety of colors and unique writing style creates another aspect of its core competency. People recognize the logo, it has become associated with a company that you can trust and most people have purchased at least one item on the site. According to Carr (2001) a value chain is: "…the series of activities that your