Analysis of Ebay
LaToya Dean MGT 8121 October 1, 2003 eBay in 2002: The Challenges of Sustained Growth 1. Identify key success factors for eBay’s strategy eBay’s main objective was to “help people trade practically anything on earth” by “creating a place where people could do business just like in the old days.” Many factors lead to its success: • eBay had first mover advantage which lead to their market dominance, their first leg up on competition • eBay became a public company • eBay designed a business model that coincided with their initial mission, to facilitated a “community-like” atmosphere for its users • eBay implemented five key action initiatives in 2002 2. ... eBay plays the mediator between seller and buyer, which makes their value chain unstoppable. eBay has no costs associated with shipping/handling and also no inventory.