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MBA ASSIGNMENT
7/22/2019
Student name

Contents
Introduction......................................................................................................................................2
Industry and company overview......................................................................................................3
Literature review..............................................................................................................................4
Analysis and findings......................................................................................................................7
Key partners.................................................................................................................................7
Key Activities..............................................................................................................................7
Key resources...............................................................................................................................8
Value proposition.........................................................................................................................9
Customer relationship..................................................................................................................9
Customer segmentation.............................................................................................................10
Channels....................................................................................................................................11
Cost structure.............................................................................................................................11
Revenue streams........................................................................................................................12
Recommendations..........................................................................................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

Introduction
A strategy is a major element that will be providing an action plan to reach out to the objectives
of the organization. A major part of business strategy is the business model that describes the
way a company must develop delivers and create value considering social, economic, cultural
and similar contexts. The report’s purpose is to understand one of the strategic management tools
that are a business model canvas. This model provides a template for the organization to create
or innovate the business model of a company that would include infrastructure, financial
elements, propositions, and customers. The report will include the understanding of the business
model and its nine building elements while taking eBay case and assessing the business model
canvas elements for eBay. Moreover, the relevant recommendations for EBay would be included
after analysing all the elements. The service innovation that the report will discuss regarding
EBay business is fast delivery speed (Ahlin, 2014).

Industry and company overview
EBay Corporation was founded in 1995 in the United States and it is an e-commerce
multinational company dealing in B2B and B2C sales of goods and services through online
mode. Therefore, it can be said that the company crossing the domestic borders has also provided
the sellers with an opportunity to sell their product online to buyers. Not only the merchandisers
but also the consumer can sell their goods online to another customer that is the trading of
second-hand goods service are also provided by EBay. The company is dealing in every
consumer goods possible through an online platform. The online business has been expanded by
most of the company, ever the small and medium enterprises have introduced their business with
technology and digital platform, which has increased the competition for EBay in the industry.
One of the major competitors of EBay is amazon, that is also dealing in consumer goods and is
found to be the largest e-commerce company in the industry (amazon, 2018). The major
advantage by amazon is the speed of delivery, which is the service innovation for EBay in order
to gain a competitive advantage as the company lags at this element of service (Biemans, 2018).
The service is the major component in e-commerce industry through which the customer value is
created and enhanced. The major services include after-sales service, customer relationship
management, and most importantly making the product available to the doorstep of the
customers. The bargaining power of buyers is very high in case of e-commerce industry, the
reason being the switching cost is negligible for the customers and increasing competition has
increased the purchasing options for the customer (Hu, Krush, & Agnihotri, 2016). Therefore, it
is important for EBay to retain customer through increasing the customer value. Another factor
that is largely affecting the industry and strategic decision of EBay is the threat of new entrants.