Essays on Situational Assessment and Problem Statement - eBay Case Study

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The paper "Situational Assessment and Problem Statement - eBay " is a perfect example of a business case study. Despite competition from the likes of Yahoo and Amazon, eBay remains the single largest online auction business. Having been founded early in the days when Internet diffusion was happening, the auction site has the advantages of being an early market entrant and has thus developed loyal customers and also managed to penetrate the market in a way that most of its competitors have not. The company indicates that it has a value-enabling platform that serves as a meeting place for both sellers and buyers (Steiner, 2006).

To retain customers, the company included community services, which provided branding and positioning for them (consumers). Consequently, the online auction platform has a strong network effect where consumers’ utility is affected (albeit indirectly) by the numbers of sellers and buyers participating in the online auction platform (Steiner, 2006). The first-mover advantage that eBay has prevented buyers and sellers from moving to other competitors (e. g. Yahoo and Amazon) because the competitors did not have the same depth and breadth in products and market size. Organizational structure eBay has two business segments namely: payment segment and marketplace segment.

The marketplace segment includes companies that eBay owns, which are ebay. com, shopping. com, stubhub. com, half. com and shopping. com (eBay Inc. , 2014). These individual companies are collectively managed by eBay marketplaces (eBay, 2010). People eBay commits itself to “ hiring, promoting and compensating employees based on their qualifications and demonstrated ability to perform job responsibilities” (Vasbinder, 2011, p. 16). Employees benefit from development workshops, health and wellness benefits, and time off. They are also compensated for overtime work.

Further, employees can buy the eBay stock at a 15% discount (Vasbinder, 2011). Notably, however, eBay does not have long-term employment contracts with key company personnel (eBay, 2010).


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