This assessment concerns an entrepreneurial venture that, in the recent past has displayed a period of sustained growth

Strategic report on the case study

eBay in 2002 : The Challenges of Sustained Growth

Contents

Executive Summary

Background

Introduction

The beginning of eBay

Target market and growth of online auction industry Sustaining Growth in the midst of increasing competitive pressures

Competitive Environment Analysis

Assessment of eBay strategic capabilities

eBay 's core competence Strategic Recommendations

Stay-on-offensive strategy Bibliography Executive Summary

A pioneer and a market leader in the online auction industry , eBay has been able to grow the business significantly in the last decade amidst

br turbulent times for many contemporary dotcom companies . eBay 's business model proved to be a success and its success story had been much followed not only by investors , but many regular people as well . From its initial revenues of 32 million , eBay had been able to grow its business to 782 .82 million in just five years . Their great success is hinged on the large community they have built , and the close relationship with the community in building trust and camaraderie in eBay marketplace . More importantly , eBay 's strategy to focus on a niche market and differentiate itself through strong brand management and continuous improvement in the roll-out of value-added services has enabled the company to defend the market leadership in the industry While many new competitors have entered into the industry , eBay continued to set its sight in serving and growing the eBay community like no other competitor can . Nevertheless , eBay 's story only illustrates the one maxim in spite all the technological hype in many dotcom businesses . That is , Customer is King

Introduction

With over 42 .4 million registered users , USD 9 .3 billion in gross merchandise sales , and 423 million of auctions , eBay is not only the market leader but a pioneer of the online auction industry as well Since 1996 , the online auction industry has experienced a phenomenal growth and eBay , as a pioneer in the industry , has revolutionized the wired marketplace since its inception in the mid-1990s . While 2001 marked the economic slowdown in US , especially for high-tech firms , eBay had continued to grow , expand , and established itself as a one of most watched success stories in Silicon Valley . In its own right , eBay has proven its business model and establish itself as the market leader and pioneer in the online auction industry

The report is based on the case study prepared by Louis Marino and Patrick Kreiser entitled eBay in 2002 : The Challenges of Sustained Growth . The case study presents eBay as a company that has established itself as the market leaders and have achieved a phenomenal growth during and even after the Internet bubble . The report will focus on analyzing the strategic capabilities of the company , the strategic options to create and strengthen its competitive position , and recommendation on the strategy for the company looking forward to the future

The beginning of eBay

Pierre Omidyar , born in France , had a passion for compassion for computers even at his early age . In fact , while he was in high school he...