eBay: Digital Business, Trends, and Strategic Alliances Report

This report provides a comprehensive analysis of eBay's digital business strategy. It begins with an overview of key trends in digital technology, including AI, machine learning, edge computing, and cybersecurity, and their benefits for eBay. The report then evaluates new and emerging digital business models, addressing ethical considerations like data privacy and the impact of competition. It further examines the influence of collaborative relationships and strategic alliances, such as eBay's partnership with Payoneer, highlighting benefits like enhanced brand image, increased resources, improved customer service, and cost optimization. The report also acknowledges potential drawbacks, such as the risk of poor management or communication gaps. Finally, the report discusses how e-commerce principles are applied by eBay to enhance its operations and customer experience. This document is contributed by a student and available on Desklib, a platform offering AI-based study tools and past assignments for students.

DIGITAL BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Overview of key trends and benefits of digital technology and implication in managing
virtual business............................................................................................................................3
2. Evaluation of new and emerging digital business with reference to key business issues.......4
3. Impact of new collaborative relationship and strategic alliance through digital technology
on E-bay......................................................................................................................................6
4. The way e-commerce principles can be used by E-bay..........................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The digital business is being defined technology which is being used in order to create
value to the business and to improve the customer experiences. This will also have a focus over
the internal capabilities and to improve the support activities. In the current technologically
advance world the digital transformation is very essential as it replaces the non- digital or manual
process with the digital and advance working. The present study is based on eBay which is an
American company based on San Jose. The company was founded in 1995 by Pierre Omidyar.
The company deals in different services which are provided with help of technology. The current
study will outline key trends and benefits of digital technology. In addition to this new and
emerging digital business will be highlighted with focus on business issues. Moreover, the report
will also discuss the impact of collaborative and strategic alliances. In the end the e- commerce
principles will be discussed with respect to eBay.
MAIN BODY
1. Overview of key trends and benefits of digital technology and implication in managing virtual
business
With respect to the current changes within the business environment the digital business
is growing rapidly. There are many different changes and trends going within the external
environment which can affect the performance of eBay. These trends are as follows-
The latest trend within the digital technology is the use of artificial intelligence and
machine learning. This is very essential for the effective management of the operations of eBay
is that this will assist the company in attracting large number of consumers. This is pertaining to
the fact that this technology will assist the company in marketing the product and services of the
company.
Another latest trend in the digital technology is the use of edge computing which is
currently trending in external environment. This will assist eBay in improving their storage of
data. With help of the cloud computing the storage of data has become a problem and due to this
edge computing came in trend (Chaffey and Smith, 2017). This edge computing is being
designed in order to solve the problem related with the data storage in cloud computing.
In addition to this another trend is of virtual reality or the augmented reality which is also
currently trending in external environment. This is also very helpful for eBay in managing and

increasing the operations of the company. this is particularly because of the reason that it will
assist the company in many fields like providing training, simulation and many other different
options (Top 9 technology trends for 2021, 2021).
Along with this another trend is of focusing on the cyber security which is being
preferred by most of the consumers. This is particularly because of the reason that when the large
data is being used by the company then it is their duty to keep the data safe and secure so that
there is no misuse of the data.
Benefits
Along with these trends there are also many different benefits which eBay can have by
using and complying with all these trends and changes. These benefits which eBay will enjoy
while using the digital trends are as follows-
The most important benefit to eBay is that they are provided with the software for the
storage of the data which is very essential. This is particularly because of the reason that with
help of the effective storage technology all the data relating to consumers can be saved for
longer.
In addition to this another major benefit which eBay will enjoy the different learning and
growing opportunities. This is particularly because of the reason that when the use of technology
is being undertaken than this provides many other opportunities as well in order to grow the
business.
Along with this another major benefit of using the digital technology by eBay is that the
communication speed will increase. This is particularly because of the reason that with help of
the technology all the information will be stored systematically and the communication will also
take place in proper and clear manner.
Moreover, another benefit of using the different digital technology is the low cost. This is
pertaining to the fact that when the different technologies are being used then this results in
decrease in cost of the company which is good for the profitability of the company.
2. Evaluation of new and emerging digital business with reference to key business issues
In the current modern and growing environment there are many different technologies
which have been emerged (Bala and Verma, 2018). Hence, it is very essential for the businesses
to adapt to these technologies in order to improve and enhance the performance of the business
in proper and effective manner. All these new and emerging technology assist the company in

improving the working and operational efficiency of the company. hence there are many
different digital models as well which have emerged in order to assist the business. Similarly, for
eBay as well the use of these technologies is helpful and also there are some of the issues which
the business can face. Hence, it is very essential for the business that they must first effectively
evaluate the pros and cons of the technology so that the technology which is more beneficial is
being implemented.
The ethical issues are the one wherein he company is in dilemma that what is right and
what is wrong (Kannan, 2017). Hence, for this it is effectively helpful in managing the use of the
technology and the different issues which the company might face while using the technology.
Hence, for eBay it is very essential that first they must evaluate all the business issues which they
might face due to the use of the new technology.
With the evaluation of the use of different technologies it was evaluated that the use of
the technology will cause the major ethical issue relating with the privacy of the data. This is
pertaining to the fact that all the aspect relating to the technology involves storing of the data
relating to the consumers. Hence, it is very essential for eBay to ensure that there is proper
privacy relating to the data (Sharma, Sharma and Chaudhary, 2020). This is pertaining to the fact
that when the technology is not managed in proper and effective manner then this will definitely
result in ineffective use of the technology. Hence, this is the major ethical issue which the
company might face at time of using the latest technology. In case the privacy of the data is not
maintained then the consumer will not like the deal with the company. hence, for the
management of the issue relating to the privacy use of trend of cyber security is being undertaken
by eBay. This is pertaining to the fact that with the use of cyber security digital model eBay can
manage to keep the data safe and secure.
In addition to this another major ethical issue within the use of the different technology is
that the competition is very high and this can negatively affect the company and its operations.
The major reason pertaining to the fact that the use of latest technology can result in competitors
using the information of the company. hence, here the major business issue being faced by eBay
is the fact that their information can be leaked and can be used in negative manner by other
competitors (De Pelsmacker, Van Tilburg and Holthof, 2018). Thus, it can result in the negative
impact over the operations of the company. thus, this can also be managed with help of the latest
technology in order to minimise the risk of the data leakage. There are many different

technologies which are used in order to store the data like the cloud computing, edge computing
which will be assistive to eBay in order to protect their information and facts. Thus, all these
technologies will assist the company in managing and keeping the data and information safe and
secure.
3. Impact of new collaborative relationship and strategic alliance through digital technology on
E-bay
Collaboration relationship means when two or more individuals or companies have
decided to work together as team for achievement of end goals. It is more complex process that
involves agreement between the parties related to policies and procedure or the way company
operates its functions for getting the desired outcome. Payoneer has collaborated with the e-bay
that has helped company in enhancing its payment process across the global or worldwide (Le,
and Liaw, 2017). There is various impact that the new collaborative relationship and strategic
alliance that E- bay formulated with Payoneer that can be interpreted as follows:
Enhance in brand image: The benefits or positive impact of new collaboration
relationship through use of digital technology is enhancing brand image of company in mind and
hearts of customer’s. Likewise, both the companies have their respective brand image or
reputation in external environment thus collaboration will help in expanding the same for
benefits of firm. Therefore, it can be stated that strategic alliance or collaboration relationship
results in growth of firm.
More resources: The another impact of new collaboration relationship is that it helps
increasing the financial and human resources of company so that sufficient resources can be used
for achieving the end goals. Thus, the E-bay will have more resource to complete various
associated activities and complete the task in effective manner for fruitful outcome. So, it can be
stated that it will helps in smooth operations of business.
Better customer’s services: Most crucial impact that the new collaboration relationship
with Payoneer have on e- bay is better customer’s services to people living in society. As it is
able to provide better payment services across global through making collaboration. Thus, it has
helped in maintaining customer’s loyalty and satisfaction to maximum extend (Uskenbayeva and
et.al., 2019).
Sharing of risk and profitability: Moreover, it can be stated that it leads in sharing of
overall risk and profitability of company between the two associated companies. With the help of

the strategic alliance and collaboration the company will have a sharing in the risk and
profitability. This is pertaining to the fact that earlier the companies were operating individually
but now the two companies are working together. Hence, this will result in the effective sharing
of the profit and the risk as well (Chaffey and Ellis-Chadwick, 2019).
Cost optimization: this is another major benefit of using the collaboration and strategic
alliance for eBay. This is pertaining to the fact that when the two companies will bring together
their operations together then this will result in cost optimisation. The reason underlying this fact
is that when the companies will merge their operation then this will result in economies of scale.
Hence, this in turn will result in decrease in cost of the operations of company.
In addition to all these positive aspects there are also some of the negative impact which
can negatively affect the operations of eBay. These negative impact of the strategic alliance and
collaboration are as follows-
The major negative aspect of using the strategic alliance and collaboration is that there is
possibility that the alliance might result in the poor management of the company. this might be
because of the reason that the alliance may result in weaker management of the combined
companies. Hence, this will create a negative impact over the working of the company (Saura,
Palos-Sánchez and Cerdá Suárez, 2017).
In addition to this another negative impact is that there can also be communication gap.
This is pertaining to the fact that it is possible that the companies combining together are from
different cultural backgrounds and employees are also from diverse backgrounds. Hence, there
are possibility that there might be communication gap among the employees which can result in
inefficient working of the company.
Moreover, loss of control can also be a major negative impact which eBay can face at
time of strategic alliance and collaboration. This is particularly because of the reason that when
the two companies combine with one another then there are many people who are terminated
from the job. The reason underlying this fact is that when the two companies combine then both
will have people working on the same position as two managers, HR, finance and many other
positions. Hence, this can cause loss of control for the company. the major reason underlying this
fact is that when the two companies will combine then one of the person will be terminated from
the position. Hence, it is possible that the person who is terminated then that companies position
in alliance may become lesser (Hanlon, 2018).

Hence, in the end it can be stated that the benefits of the strategic alliance and
collaboration are more as compared to the drawbacks. Hence, the strategic alliance and
collaboration are helpful and beneficial for the company in order to grow and develop in this
technologically advance environment.
4. The way e-commerce principles can be used by E-bay
E- commerce is platform that has been used by E-bay in which buying and selling of
products and services take place through electronic media or internet connection. E-bay its
selling its products through online platform so it must need to abided to all the e- commerce
principles for fruitful outcome. Therefore, the principles that needs to be followed by the
company for achieving the higher growth and development in future circumstance can be
illustrated as follows:
 User friendly; The first and foremost principles that has to be abided by the e- bay is
making the official websites, pages user-friendly so that they can easily access the same.
Likewise, providing the ample detailed, picture of products and services so that they can
get idea about products in which company deals. Thus, they can take accurate decision to
make purchase for satisfaction of their respective wants (Necula and et.al., 2018).
 Emphasis on security: There are various security issue or threat to loss of personal
information of individuals therefore company needs to take steps to maintaining security
so that the customers can easily trust and be a part of firm. E-bay has to invest in security
of payment and information of people so that no harm or disadvantage can be caused to
customer’s in future circumstance. Therefore, people are more concerned about their
privacy and security of information so e-bay through emphasizing the same can enhance
their satisfaction level.
 Knowing the target audience: Another e- commerce principle that can be followed by
e-bay is knowing or identifying the target audience of company in order to plan
appropriate strategies that could be used to attract them within the firm. So, e-bay by
finding potential target audience is able to provide personalized and better services to
them. Thereby motivate them to be part of organization for longer time frame so that it
can enjoy huge profitability and sales volume.
 Consistent branding: Company must also focus on consistent branding while making
use of e- commerce platform because it helped in building and maintaining strong

relationship with customer’s. It can easily generate awareness among people about
products and services and various offered that are provided by the organization so that
they are influence to be part of firm (Sreedhar, 2018). Furthermore, while consistent it
should also emphasis on font size, colour and photo that needs to be included in the
website so that people are attracted in the organization.
 Speed and high quality content: Moreover, it can be stated that it is another principles
of e- commerce that has to be followed by e-bay which will helps in its growth and
expansion. It should make all website and other platform user friendly so that they can be
easily accessible by the people. In addition to this, organization must also emphasize in
making high quality content in its website so that they are highly motivated and influence
to try products for fulfilment of their desire. Thereby, rapid loading of pages and high
quality content on website will lead in making customer’s happy and satisfied.
 Making online payment easily: At the same time, it can be said that E- bay while
promoting its business through e- commerce has to focus on making online payment
easy. So that customers can quickly make the payment without much wastage of time and
efforts thus it contributes in enhancing customer’s satisfaction and loyalty.
 Unique design element: E-bay in order to gain the best outcome also needs to focus on
unique design elements in its website and some other platform to make it more attractive.
Furthermore, it can be stated that unique designing elements that is use of @ or
underscore helps in adding new as well as existing customer’s to be part of organization
(Gajewska and et.al., 2019).
Therefore, it can be stated that all these e- commerce platforms will help E- aby in
connecting and retaining relationship with millions of people that are living in society. So, it
must be followed by it while operating its functions in external environment.
CONCLUSION
The above report concluded the fact that in this modern world the use of digital business
is very popular and beneficial. This is pertaining to the fact that the digital business assists the
undertaking the use of different technology which creates new value within the business model.
In addition to this digital business also motivates the companies who are technologically
upgraded to upgrade themselves. The present report outlined that there are many trends like use
of augmented reality, artificial intelligence and many others. In addition to this, the use of these

technologies also provides different benefits like low cost, improved communication and many
others. Further the report highlighted that there are different issues which company face like
privacy of data, data used by competitor and many others. Moreover, the discussion relating to
impact of collaboration and strategic alliance was made like improving brand image, more
resources and many others. In the end the different principles of e- commerce like emphasis on
security, user friendly and others was discussed.

REFERENCES
Books and Journals
Bala, M. and Verma, D., 2018. A critical review of digital marketing. M. Bala, D. Verma (2018).
A Critical Review of Digital Marketing. International Journal of Management, IT &
Engineering, 8(10), pp.321-339.
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
Chaffey, D. and Smith, P.R., 2017. Digital marketing excellence: planning, optimizing and
integrating online marketing. Taylor & Francis.
De Pelsmacker, P., Van Tilburg, S. and Holthof, C., 2018. Digital marketing strategies, online
reviews and hotel performance. International Journal of Hospitality Management, 72,
pp.47-55.
Gajewska, T and et.al., 2019. The impact of the level of customer satisfaction on the quality of e-
commerce services. International Journal of Productivity and Performance Management.
Hanlon, A., 2018. Digital marketing: Strategic planning & integration. Sage.
Kannan, P.K., 2017. Digital marketing: A framework, review and research agenda. International
Journal of Research in Marketing, 34(1), pp.22-45.
Le, T. M. and Liaw, S. Y., 2017. Effects of pros and cons of applying big data analytics to
consumers’ responses in an e-commerce context. Sustainability, 9(5). p.798.
Necula, S. C and et.al., 2018. Enhancement of e-commerce websites with semantic web
technologies. Sustainability, 10(6). p.1955.
Saura, J.R., Palos-Sánchez, P. and Cerdá Suárez, L.M., 2017. Understanding the digital
marketing environment with KPIs and web analytics. Future Internet, 9(4), p.76.
Sharma, A., Sharma, S. and Chaudhary, M., 2020. Are small travel agencies ready for digital
marketing? Views of travel agency managers. Tourism Management, 79, p.104078.
Sreedhar, G. ed., 2018. Improving E-commerce web applications through business intelligence
Techniques. IGI Global.
Uskenbayeva, R and et.al., 2019, October. Formation of Order Packages for Planning of the
Orders Implementation Process in E-Commerce. In 2019 19th International Conference
on Control, Automation and Systems (ICCAS) (pp. 34-39). IEEE.
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