Established in 1995, eBay business model has grown in new and innovative ways by taking advantage of the various opportunities presented by the internet. eBay allows individuals to sell and buy goods through its website using their smartphones and computers. One main strategy that has enabled the company to remain ahead of the competition is to constantly innovate with the changes in technology. This strategy is evidenced by the establishment of a shopping platform that supports the use of smartphones.
Additionally, eBay has established a social strategy, which enables people to trade in pre-owned products. This method is attractive to customers who want to buy commodities at a low price while at the same time taking care of their environment. Further, the ability of eBay to partner with various companies such as PayPal has enabled it to spread quickly into the world. Specifically, PayPal has provided the company with an international payment platform that can be used by traders who use eBay. The introduction of StubHub has enabled the company to venture into the entertainment industry. Notably, this is a market that most of its competitors have been unable to access. However, the most differentiating and unique strategy that has enabled eBay to prosper is the use of bidding. Specifically, this method enables customers to either bid for commodities and buy them at the most competitive prices or to buy them directly using the quoted prices. On the side of the seller, it enables them to sell products at the best rates.
eBay current strategy fits the prevailing market situation. With the growing competitiveness in the world, people are always looking for places where they can purchase high-quality products at the least cost. The purchase through bidding process provides such an option. Currently, eBay’s stock prices, as well as profitability show that the company is competitive. As of September 2011, the company’s stock traded at $12.67 per share while they are now valued at $32.7 per share. Overly, the company has enjoyed a steady growth in shares and profitability. Nonetheless, with increased competition, the company will have to remain innovative.