Note: The textbook is "International Business Environments and Operations” ( twelfth edition), John D. Daniels, Lee H. Radebaugh and Daniel P. Sullivan (2009), New Jersey, NJ: Pearson Education, Inc. The following chapters of the textbook are expected to be used for references and incorporating core concepts into the answer paper: * Chapter 11: The Strategy of International Business * Chapter 12: Country Evaluation and Selection
Read the case study “The Globalization of eBay” below and incorporate into your analysis responses to the following questions: 1. What is eBay’s core competency? How does it relate to its chosen strategy? 2. How would you explain how eBay has decided to configure and coordinate its value chain? 3. Would you characterize eBay’s value chain as virtual or real? Why? 4. Consider again your description of eBay’s strategy. Is it different from what it was ten years ago? Why? 5. What do the implications of the challenges identified in the case have for eBay’s strategy today and in the future?
THE GLOBALIZATION OF eBAY
On Labor Day 1995, Pierre Omidyar launched eBay---an online trading platform that permits peer-to-peer trading in an auction format. Essentially a Web-based forum, it provides an efficient market for buyers and sellers to connect. That is, eBay helps individuals and businesses buy and sell items in categories including antiques and art, books, business and industrial, cars, CDs and DVDs, clothing and