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The Globalization Of Ebay Essay

398 words - 2 pages

What is ebay core competency?
Ebay's core competencies are the strategies that make eBay have an edge over other companies that do the same kind of business it does. Some of eBay's core competence include there customer bay is wide, their service can be accessed anywhere because they are always online and they have placed a lot of time and funds on marketing which makes it more marketable.
1. What is eBay’s core competency? How does it relate to their chosen strategy?
eBay’s core competency is in developing and improving software and digital infrastructure tools that lead to the ...view middle of the document...

The core technologies eBay uses are centralized, but because of the need to confine shipping of goods to shorter distances, the need to conduct many transactions in local currencies, and the need to list product descriptions in local languages, eBay has decentralized its value chain configuration by developing largely independent country subsidiaries as well. The company’s vision may be one of seamless global commerce, but the reality is often one of more isolated single country marketplaces.
3. Would you characterize eBay’s value chain as virtual or real? Why?
Most of eBay’s value chain is virtual, due to the fact that the company doesn’t ever actually handle any of the products that are sold on its sites. eBay’s entire objective, in fact, is to create a safe and secure virtual community through which tangible products can be traded by users. eBay’s role in the process is to stimulate, maintain, and strengthen the virtual ties created by users that lead to the real exchange of goods.
4. Consider again your description of eBay’s strategy. Is it different from what it was ten years ago? Why?
eBay’s fundamental strategy has not changed in the last 10 years. The only thing that has changed is the scale on which that strategy is implemented. eBay has expanded its presence within its...

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