Introduction
eBay has been around for almost three decades and is now a global giant. In less than 30 years, it has transformed from a garage startup into a global giant (Baker et al., 2022). Therefore, it would be interesting to take a closer look at how eBay has turned into one of the most profitable e-commerce enterprises in the world today. A platform is an excellent tool for small and medium-sized businesses. Its goal is to empower people and create economic opportunities. A closed—loop economy in which resources are sold so they can be used for as long as possible, extracting maximum value from them and redirecting waste to landfills while reducing the need to produce new goods is a modern trend (Kaya et al., 2019). However, eBay supports it from the very beginning. The most intriguing element, in this case, is how they innovated and experimented with new products and services. Furthermore, the way they target new customers from all over the world. Moreover, how they improve the quality of customer service and expand their presence worldwide.
Product Life Cycle
The product lifecycle describes all products’ paths from development to final decline. eBay is now at the maturity stage. eBay was one of the first online markets, and they were able to capitalize on the early growth of the Internet to achieve global business success. eBay passed the development stage in 1995 when it was still called AuctionWeb (Baker et al., 2022). It was a special software to help young mothers sell their children’s used clothes. This is how the original eBay business model was born, ensuring its success. This became the stage of introduction. eBay has developed at the growth stage thanks to various strategic partnerships. For example, the founder of eBay convinced the CEO of PayPal to join eBay immediately by offering him 50% of the company (Simakov, 2020). Now that the company is mature, eBay recorded the highest quarterly revenue in the first quarter of 2021 (Baker et al., 2022). Most likely, soon, the company will not more quickly enter the decline stage, as it introduces many innovations and continues to develop.
Porter’s National Advantage
Michael Porter’s Diamond Model, also known as the National Theory of Industry Competitive Advantages, is a strategic tool companies use to identify and develop the basis of competitive advantages necessary for international growth and development. The most competitive factors for eBay are capital resources, technological innovation, and sponsorship.
The main advantages of eBay are capital resources and technological innovations. Capital resources include financial resources available on eBay (Kaya et al., 2019). Technological innovations – scientific knowledge leads to frequent innovations. The company has broad access to technological innovations that help achieve economies of scale and reduce overhead and other operating costs (Simakov, 2020). This also allows them to enter other markets with maximum profit.
Sponsorship and related industries have also significantly helped the brand reach new heights yearly. The presence of associated industries in the domestic and international markets has also been a source of eBay’s growth and development in the field of products and internationalization (Kaya et al., 2019). This is because related industries have helped eBay do business by providing the necessary supporting materials to succeed. The presence of auxiliary enterprises helps eBay to grow and develop its business. In domestic markets, support sectors have helped to create an industry, enabling companies like eBay to grow and develop their business operations, attract consumers, and increase product awareness and recognition in consumer markets.
Conclusion
eBay’s organizational structure and development, as well as vision and strategic decisions, have played an essential role in promoting the company’s international growth and development (Kaya et al., 2019). eBay’s policies and government structures have been particularly favorable in different countries. Government policy has supported eBay’s plans and expansion and growth opportunities (Kaya et al., 2019).
References
Baker El-Ebiary, Y. A., Ghanem, W. A. H., Saany, S. I. A., Rose, A. N. M., Jusoh, J. A., & Hassan, H. (2022). A Comparative Study of eBay and Amazon Electronic Commerce Platforms. Springer, Cham. 371-380. Web.
Kaya, S., Khan, M. D., & Habib, R. I. (2019). Advanced technologies for supporting dispute resolution: an analysis. Review of Applied Management and Social Sciences, 2(1), 47-57. Web.
Simakov, V. (2020). History of formation of e-commerce enterprises as subjects of innovative entrepreneurship. Three Seas Economic Journal, 1(1), 84-90. Web.