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eBay written analysis of case

 

            EBAY IN 2002: THE CHALLENGES OF SUSTAINED GROWTH.
            
            
             eBay's primary problem is how to cope with the challenge of sustained growth and maintain its position as the dominant player in the auction industry. Its secondary problems are the challenge to retain its traditional values and community culture, given its rapid growth and the changing size and composition of its user base and the challenge of how far can the company expand before its core business model begins to erode. Also, there is the challenge of how far can the company expand into new auction categories before they are placed in direct competition with large, well-known, well-funded, and resourceful rivals. In line with these problems are certain issues that eBay is currently facing. First, a segment of small sellers who felt that eBay had "sold out" to large companies and have neglected the needs and interest of individuals and collectors who had been so instrumental in spreading the popularity of online auctions. The other issue is the erosion of its key competency which is its sense of community that helped establish eBay's position in the market. There are several options which are open to eBay but they must be able to decide which opportunity should the company pursue.
             II. Analysis.
             A. Vision Mission.
             ebay is the World's Online MarketplaceTM for the sale of goods and services by a diverse community of individuals and businesses. ebay's mission is to provide a global trading platform where practically anyone can trade practically anything. It was conceived as a democratized, efficient online marketplace that would facilitate a person-to-person trading community in which everyone can have equal access through the same medium which is the internet. Its core is personal trade and its concept was to create a place where people could just do business like the old days wherein everyone got to know each other's personality, and consumers felt that they are dealing on a one-on-one basis with individuals eBay can trust.


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