Write Scholarly Activity for International Business course (MBA)
The business model of eBay is based on facilitating peer-to-peer trading in an auction format by means of the online trading platform . Therefore it acts as a virtual marketplace in which buyers and sellers can conduct transactions . eBay 's competitive advantage stems from the operational framework which demanded little supervision . This enabled the company to reduce its costs . Its globalization thrust is based upon conducting commerce that is sustained by trust and inspired by opportunity eBay 's core competency is in finding solutions to the gaps in the business model . For example
eBay 's core competency is in finding solutions to the gaps in the business model . For example
, in the initial stages facilitating the transfer of funds from buyers to sellers was the limiting factor . The company addressed this factor through acquiring PayPal , an online financial service that enabled anyone with an email address to transfer funds electronically . This core competency has enabled the company to implement the chosen strategy of maintaining a flexible system that can be extended functionally with minimal supervision . The flexibility of the system has been maintained with additional features such as the installation of Skype which as a software protocol enables Voice over Internet Protocol calls between Skype users online with the additional feature of low-cost connectivity to traditional fixed-line and mobile telephones . Thus the core competency in maintaining a flexible structure has been sustained facilitating the strategy of global expansion . The flexible structure has enabled the company to develop mechanisms such as the AAA program which has been critical in promoting the global strategy
eBay has configured its value chain...