Kohlton White

ITS 380

Chapter 11


1. Contrast eBay’s original business model with its current business model.

eBay originally was an online auction/bidding site where users would post and bid on goods. Now is more of a traditional e-commerce where you can buy the products that you want instantly instead of fighting over them via auction.

2. What are the problems that eBay is currently facing? How is eBay trying to solve these problems?

eBay’s biggest issue now is relevance. I would say, “maintaining relevance” but they have already lost it. To argue the point of relevance, eBay “was” a household name, but to be honest, if it wasn’t for our teacher reminding us every semester that she uses it, it would have continued to slip my mind. This is what Amazon did. They made eBay completely irrelevant.

3. Are the solutions eBay is seeking to implement good solutions? Why or why not? Are there any other solutions that eBay should consider?

Yeah, I like to think that eBay is heading in the right direction, on paper. They know what’s wrong and have a pretty good outline of how to execute their new ambitious scheme. I think that acquiring top professionals from their competitors would be a good plan. Like what Target did with acquiring Amazons Chief supply chain and logistics officer.

4. Who are eBay’s top competitors online, and how will eBay’s strategy help it compete?

eBay’s top competitor is Amazon, which they are basically copying their homework and hoping that they can obtain success… which means that they’re lagging. Essentially, eBay will never have the level of clout that Amazon has, but if they’re smart, then they will avoid trying to be like Amazon. Eventually, some of these Amazon-like companies will expand their influence into the western market and that’s something that eBay should be worried about.