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Strategy Analysis of Ebay

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Strategy Analysis of Ebay
MGMT 314: STRATEGIC MANAGEMENT

ASSIGNMENT 1:
CASE STUDY – EXECUTIVE SUMMARY THE CHALLENGES FACING EBAY IN 2008: TIME FOR A CHANGE IN STRATEGY?

SUBMITTED BY: CHAN LAI FENG ONG AINA ONG EE LING ELAINE
MGMT 314 Strategic Management

3795457 3794106 3721668
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Table of Contents
Introduction ----------------------------------------------------------------------------------------------------------------- 3 eBay’s Business Model ---------------------------------------------------------------------------------------------------- 3 Strategic Issues and Analysis ------------------------------------------------------------------------------------- 3 - 5    Competitors Challenge ----------------------------------------------------------------------------------- 3 - 4 Over Diversification ------------------------------------------------------------------------------------------ 4 Incompetency of CEO ------------------------------------------------------------------------------------ 4 - 5

eBay’s Strategic Analysis ------------------------------------------------------------------------------------------ 5 - 6 Recommendations -------------------------------------------------------------------------------------------------- 7 - 8 Appendix ------------------------------------------------------------------------------------------------------------- 9 - 15 References ----------------------------------------------------------------------------------------------------------------- 16

MGMT 314 Strategic Management

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Introduction eBay, an online auction platform was founded by French born Iranian Pierre Omidyar in San Jose, California on 3rd September 1995. Meg Whitman‘s acting as eBay‘s President and CEO has generated increase revenue of $86 million in 1998 to $5.9 billion in 2008. John Donahoe and his top management faced the challenge to sustain and invigorate growth of legacy established by his predecessor. A major challenge facing him


References: 1) CNET 1998 , Technical problems plague eBay again, accessed 17/05/2011, http://news.cnet.com/Technical-problems-plague-eBay-again/2100-1017_3-219296.html 2) Lovelock, C., Wirtz, J. and Chew, P. (2009) Essentials of Services Marketing. Singapore, Prentice Hall. 3) Steiner, I 2008, eBay 's John Donahoe on 'Naughty CEO ' List Weblog, weblog, accessed 22/05/2011,http://blog.auctionbytes.com/cgi-bin/blog/blog.pl?/pl/2008/12/1230392478.html MGMT 314 Strategic Management Page | 16
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