This essay examines and analyzes the global strategies incorporated by eBay. eBay Inc. operates in a completely online platform. The company’s operating segments include online marketplaces, online payments, and internet communications.
Since it’s inception eBay has become the largest online global e-commerce marketing site. The flagship site, eBay, operates the auction marketplace. According to eBay’s website the company has 84 million users across 39 different markets creating $60 billion in international trade value. (eBay Inc.: A Short History) eBay also owns PayPal which operates it’s payments segment, and Skype which is the internet communications segment. eBay, PayPal, and Skype represent the flagship brands that the company holds.( eBay Inc. Outlines Global Business Strategy)
The company also owns several other online marketplaces that specialize in comparison shopping, event ticket reselling, apartment listing services, and classified advertising. The key to eBay’s success in the global e-commerce market is found in the company’s international strategies, core competencies, and in it’s value chain.
Companies employ four types of international strategies: international, multi domestic, global, and transnational. Most companies employ some elements of each type of strategy. (Daniels, Radebaugh, & Sullivan, 2007) eBay employees elements of multi domestic, global, and transnational strategies both at the corporate level and within the operating units. eBay’s multi domestic strategy takes into account the cultural and language differences in the various markets it operates in.
The global strategy is to provide a consistent platform across all markets and in the operating segments. The marketplace and payments sites are completely interdependent. However, the company continues to operate through the U.S. headquarters. eBay’s transnational strategy is to provide platforms that are highly efficient in a global environment, but effective in meeting the particular needs of buyers and sellers in local markets.