Strategic Management of Ebay

Running head: STRATEGIC MANAGEMENT
Strategic management of Ebay
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STRATEGIC MANAGEMENT
Table of contents
Current strategic position of eBay..................................................................................2
Past performance of eBay..............................................................................................2
Financial aspects............................................................................................................2
eBay’s international growth.......................................................................................3
Contribution of the assets in achieving competitive advantage.................................4
Generic strategy adopted by eBay..............................................................................5
Conclusion......................................................................................................................6
References......................................................................................................................8

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STRATEGIC MANAGEMENT
Current strategic position of eBay
According to CEO, online commerce provides the customers with the platform to
enhance their experience. As per the statement of the critics, eBay has transformed the
scenario of the retail landscape. The major drive behind this is the technological innovation.
Variability in the products and services helped Ebay in achieving competitive advantage over
the contemporary brands. Adequate stock adversely affects the purchasing power of the
customers (McNamara et al., 2014).
Past performance of eBay
Resetting of password and web search engine drastically reduced the number of
customers. This is due to the increase in the number of cyber crimes, which compelled the
personnel to encounter severe losses in the form of customer turnover. Most striking result
was the loss of organizational data. The customers were instructed to change their passwords
for logging into the account. The customers, occasionally visiting the website disobeyed the
orders. This heavily impacted the emergence of the new users (Comberg & Velamuri, 2017).
Financial aspects
Escalation in the value of dollar influenced eBay’s trade in the borders. This created
obstacles in the export activities to US and North America. Collapse in the sales
simultaneously declined the traffic. This decline altered the fate of eBay from “online yard”
to a “trendy retailer”. In spite of this transformation, the brand faced intense competition from
the retail giants like Amazon, Google, Walmart, Staples, Home Depot among others. April
2017 was the era, which witnessed expansion in eBay’s business. $500 million equity stake
saw the emergence of eBay as a start up within the threshold of India (Comberg & Velamuri,
2017). This was in exchange for the plan of selling the India business to Flipkart.

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STRATEGIC MANAGEMENT
eBay Inc.
CONSOLIDATED BALANCE SHEETS
December 31,
20
16
201
5
(In millions,
except per value)
Assets
Current assets:
Cash and cash equivalents
$
1,817
$
1,833
Short-term investments
5,33
4
4,23
9
Accounts receivable, net 593 620
Other current assets 1,135 1,155
Total current assets
8,87
6
7,90
5
Long-term investments
3,97
0
3,39
2
Property and equipment, net
1,51
7
1,55
5
Goodwill
4,50
1
4,45
1
Intangible assets, net 102 90
Deferred tax asset, non-current
4,60
9 –
Other assets 276 365
Total assets
$23,
847
$17,
755
Liabilities and Stockholders’ Equity
Current liabilities:
Short-term debt
$
1,451
$
–