eBay's Blue Ocean Strategy Strategic Sequence

Blue Ocean Strategy
Knowledge Center

Forum

New Topic

Chris Wiggins
Student (University), United States

eBay's Blue Ocean Strategy Strategic Sequence

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 key as they would be dependent upon network externalities to be successful.
- Cost: since all transactions occurred online, and all with third-party goods offered for sale, overhead was low. eBay was able to apply price-minus costing to arrive at a profitable yet hard to match price cost structure.
- Adoption: eBay’s clearest adoption hurdle was consumer trust. Today there are numerous tools which were introduced at various points in the history of the business that help create trust in eBay’s market, such as detailed seller feedback and dispute resolution processes. However, at the time of company founding, the online auction concept was so new that eBay had to take a leap of faith for the sake of their own market. eBay addresses this on their values page of their website where they state, “Pierre Omidyar founded eBay on a simple idea: people are basically good.” eBay started small, and as trust was built quickly gained momentum--aided no doubt by their low pricing structure and overall value innovation.

  Caroline Pittman
Student (University), United States
 

BOS eBay Strategic Sequence - Adoption

eBay also eliminated risk by partnering with PayPa (...)

  E. von Ammon
Business Consultant, Switzerland
 

Local Markets not Served Well

But eBay does not serve local and regional markets (...)

  Eva Niklaus
Business Consultant
 

BOS EBay and Local Markets

@E. von Ammon: it´s exactly what I try to tell to (...)

  Chris Wiggins
Student (University), United States
 

EBay BOS and PayPal Acquisition

Caroline: I agree, enabling PayPal was an extreme (...)

  david walters
Professor, Australia
 

Blue Oceans versus Golden Ponds

Surely the eBay has been an example of looking for (...)

  Chris Wiggins
Student (University), United States
 

EBay and Regional Markets

@E. von Ammon: thank you for your feedback. I agre (...)

  E. von Ammon
Business Consultant, Switzerland
 

Trade Barriers and Behaviour

@Chris Wiggins: you are right - more visibility is (...)

  Eva Niklaus
Business Consultant
 

EBay and the Reality

@E. von Ammon: I agree with you! I am living in Sw (...)

Start a new forum topic

 

More on Blue Ocean Strategy
Summary
Forum
What is the Four Action Framework?
What are Execution Hurdles in BOS?
BOS - Three Tiers of Noncustomers
Blue Ocean Strategic Sequencing - Apple
BOS - Buyer Experience Cycle
BOS: Buyer Utility Levers
The Importance of Innovating
This Isn't Strategy?
BOS for UPS
BOS Sequence L.L. Bean
BOS in Less Developed Countries
Filtering Blue Ocean Ideas: Strategic Overlays
Navy Federal Credit Union
Not Properly Contested Markets
Blue Ocean Strategic Sequencing - Amtrak
BOS Sequencing for Blockbuster
BOS versus RBV and MBV
Blue Ocean Strategic Sequencing for US Airways?
BOS Research
Nintendo's Wii BOS Strategic Sequence
Papa Murphy's Strategic Sequence
Verizon Communications Strategic Sequencing
Best Buy - BOS Proposal
Blue Ocean Strategic Sequence for Amazon.com
Blue Ocean Strategic Sequence for Barnes and Noble
Blue Ocean Strategic Sequencing for Delta Airlines
Blue Ocean Strategic Sequencing on Disney
BOS and ROS are Both Supplier Centric
Getting the Strategic Sequence Right for Verizon Wireless Droid Pro
How to Start with BOS?
Nestle BOS Sequencing
The BOS (BOS) Sequence of Citibank
🔥Validated Instrument for Measuring BOS
Blue Ocean Strategic Sequence for Blockbuster
Blue Ocean Strategic Sequencing - Exxon Mobil
BOS Success Example in India
CSR Part of BOS
eBay's Blue Ocean Strategy Strategic Sequence
First Mover Advantage / Price Maker in BOS
Six Paths Framework for Property Management Companies
Sony Playstation in Medical Field
Strategic Sequencing Education Industry for Adults
Blue Ocean Sequencing - Bank of America
Blue Ocean Strategic Sequence for Oreck Direct
Blue Ocean Strategic Sequencing - Best Buy
Blue Ocean Strategic Sequencing in Office Furniture
BP Moving From Red Ocean to Blue Ocean
Blue Ocean Strategic Sequencing - Dell
Wal-Mart Strategic Sequence
Best Practices
Visionary Leadership and BOS
Blue, Green or Even Violet Ocean Strategies
What is a Strategic Sequence?
Using BOS Inside Companies
BOS Disadvantages
What is a Pioneer-Migrator-Settler Map (PMS Map)?
BOS = Niche Market Strategy
Differences in BOS / ROS Cultures
How to Avoid Imitation of BOS?
BOS in Small Companies
Creating a New Mental Category
Why is it called 'Blue' Ocean Strategy?
Six Paths to Moving from Red to Blue Ocean
BOS: more of the same
Porter Model vs BOS
Can a Blue Ocean Eventually Turn Into a Red Ocean?
'Purple' Ocean Strategy
The Context Determines BOS or ROS
BOS of Google
Define the Gap in the Market
Blue Ocean is Economics Failure
Special Interest Group

Do you have a keen interest in Blue Ocean Strategy? Become our SIG Leader

Blue Ocean Strategy
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2021 12manage - The Executive Fast Track. V15.8 - Last updated: 3-8-2021. All names ™ of their owners.