Ebay E-Commerce Week 1 Case Study

1. How have the characteristics of digital media supported eBay's growth?

The characteristics of digital media have supported eBay's growth in many ways. New developments in software have created a convenient and user friendly experience for both buyers and sellers. Advances in security based software have made transactions more secure and allowed more customers to be able to trust the security measures enough to be willing to make purchases through PayPal accounts. Feedback areas allow potential customers to view the seller's history. Developments have also allowed eBay to offer "stores" to sellers who sell often to show their entire line of products in one place while offering a sort of "traditional" shopping experience. The Buy-it-Now feature has also attracted many new buyers who may not particularly want the hassle of bidding on a product as well as enhanced the experience for sellers who have more than one product to offer.

2. How have strategic decisions supported growth?

All of eBay's strategic decisions are made with the maximum growth potential in mind. Including the ones that may not be incredibly popular with users, such as increased fees that would be used to help improve the site. Their acquisitions have also been with maximum growth potential in mind. The acquisition of Rent.com will allow for the company to expand into the housing market. eBay owns the very popular StubHub, an online ticket marketplace. Each acquisition has been made with the intent that eBay will be able to expand into that market now or in the near future.