Listening at eBay

Q.1 How do you think Meg Whitman would describe eBay’s strategic capabilities?

ANS: The eBay process was simple and easy to understand. Sellers could list items for sale and pay a
small listing fee eBay has an educational system that offers classes around the country to provide
information to people on how to sell on eBay. before 1990’s the site was not good enough to handle
high traffic but after upgrading the website The shut down time reached to 42 minutes which was
previously 22 hours the system has developed according to the need of the people

Q.2 Undertake your own analysis of eBay’s strategic capabilities, e.g. by activity mapping(section
3.6.2).

ANS: eBay build a strong customer relation by trying to know what the buyers/sellers want to
buy/sale and creates awareness on how to make effective use of the eBay marketplace by
conducting seminars for the buyers and sellers so as to enable them participate more actively on
the eBay business.

Q.3 Give your own explanation of eBay’s strategic capabilities with particular emphasis on:

(a) identifying linkages of activities;

ANS: When we talk about strategic capabilities we need to keep in mind the resources and competences
physical, Financial, Human

(A)The activities started first through auctions, trade, further made website after which they saw
consumers mailing advices. Looking into the consumers advice they adapted and made modifications
which lead to new product categories, customer support, technology, teleconferences for betterment or
modifications, training and workshop sessions

(b) identifying core competences.

(B) In the context of the case study the core competences is linked set of skills, activities and resources
that together

1. Delivers the customer value by acting on their suggestions and going an extra mile for them

2. Unlike P&G, can only indirectly control their products, no stock to record, to provide tools to buy and
sell more effectively

Q. How might eBay manage the future development of its strategic capabilities?

ANS. They change with time