e Bay eBay.com: Profitably managing growth from start-up to 2000

e Bay

eBay.com: Profitably managing growth from start-up to 2000

eBay is the leading Internet auction site in the world. Launched in 1995, it has grown continually up until the time of the case, 2000. The basic idea is that buyers and sellers transact in an auction system via the eBay site and the company takes a fee for each sale. Both buyers and sellers can access a large market this way and the system used is easy to understand. The eBay team has grown since 1995 with the addition of staff with business and marketing knowledge and skills. The eBay community has also grown, while at the same time the company brand has expanded internationally. In addition, they have purchased bricks-and-mortar auction businesses and withstood competition from a large number of players in the on-line auction industry. eBay in 2000 has made aggressive sales forecasts and ventured into software development. They have 80% of the industry action but their share price in 2000 fell 20%.
Teaching area
This is a good case on the growing of capabilities over time; in this instance, a short time. This case highlights the significance of conducting analysis for general environment, industry and internal analysis opportunities.
Questions
1 How have eBay built capabilities over time?
2 Will eBay’s current dominance of on-line commerce continue?
3 Is this an attractive industry?

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