Ebay Blue Ocean Strategy

eBay idea is started when the eBay founder, Pierre Omidyar, started an online auction site to help his girlfriend trade some candy dispensers with other collectors, but within a few months the volume of business had far exceeded what he alone could handle and many business opportunity started to appear. So he started to hire people who have more business experience and wider knowledge to help out in the business. Soon the company had many employees, departments, managers who were responsible for overseeing the various aspects of the company, and branches around the world to provide eBay's service for its customers worldwide (Laudon & Traver, 2010).

eBay's operating segments are based upon its internal organization structure, the manner in which its operations are managed, the criteria used by its Chief Operating Decision Maker to evaluate segment performance and the availability of separate financial information. eBay has two operating segments: Marketplaces and Payments. Historically, we had a Communications segment that consisted of Skype (eBay, 2010).

6. Market Strategy

eBay's marketing strategy is very efficient. Most other new business spent a huge amount of money in marketing process. But eBay has a different route way. eBay was growing very fast globally and became one of the most famous company's name, and the company did find the need to advertise until the early 2000s (Hill, Charles W.L., and Jones, Gareth R.). For example, the company used fabricated story about the PEZ Candy dispensers to help market eBay.

eBay spends a big number of money on pricing, promotion, and advertising their business. eBay does a lot of advertising on television, newspapers, and other website like Facebook. eBay also worked in partnership with Yahoo and Google to help promote their products. eBay's marketing strategy with Yahoo and Google is very efficient because when users search for a certain item some of the top recommendation will be from eBay.

eBay developed its marketing strategy by introducing an eBay's Power Sellers program, providing special benefits and privileges to heavy users, Defining brand positioning, delivery the strategy which is Streamlining and strengthening the organization with a clear corporate vision.