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eBay's Blue Ocean Strategy Strategic Sequence
Chris Wiggins, Student (University), United States, Member
eBay operates in a Blue Ocean today due to their ability to capitalize on their first mover advantage and immense popularity. The BOS sequencing for eBay is:
- Buyer utility: eBay innovated a convenient way for sellers to list, and buyers to bid on and purchase, items online. The utility is clear for both buyers and sellers: buyers get the chance to purchase items at extremely attractive prices due to the buyer-driven market, and sellers are offered the exposure of a global marketplace in which to sell their items—all done with the excitement of an auction-style sale.
- Pricing: since eBay was only a sales broker of sorts, pricing was free for buyers and only a percentage of total sale price for sellers—and in its most basic format, sellers were only charged if the item sold. The online auction model was untested, and would be fairly easy to imitate by a competitor, so strategic pricing was set very low since volume was the...
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BOS eBay Strategic Sequence - Adoption
Caroline Pittman, Student (University), United States, Member eBay also eliminated risk by partnering with PayPal to handle their transactions. This was necessary as purchasing on the internet was not considered ...
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Local Markets not Served Well
E. von Ammon, Business Consultant, Switzerland, Member But eBay does not serve local and regional markets well. A Swiss competitor named Ricardo is the trusted platform to people in a small country who lov...
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EBay BOS and PayPal Acquisition
Chris Wiggins, Student (University), United States, Member Caroline: I agree, enabling PayPal was an extremely beneficial move on eBay's part.
This allowed all their users to pay with credit cards which...
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Blue Oceans versus Golden Ponds
david walters, Professor, Australia, Member Surely the eBay has been an example of looking for a compromise between competitive advantage and acceptable levels or risk. They as did Amazon and ma...
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EBay and Regional Markets
Chris Wiggins, Student (University), United States, Member @ E. von Ammon: thank you for your feedback. I agree, eBay does not do much to foster regional trade. It is one of t...
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EBay and the Reality
Eva Niklaus, Business Consultant, Member @ E. von Ammon: I agree with you! I am living in Sweden for some years but I'm originally Swiss. All you tell is exa...
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Andrew Nelson
