Description: EBay was growing so fast early in its history that Meg Whitman, its former chief executive, liked to joke that “a monkey could drive this train.”
Date: Feb 6, 2011
But while eBay’s marketplace revenue grew just 8 percent to $5.7 billion last year, eBay is still losing market share to its rivals, as global e-commerce sales increased 18.9 percent in 2010. Amazon.com widened its lead last year, whileGroupon, the daily deal service, and a number of specialty retailing sites like Etsy began nipping at eBay’s heels.
Mr. Donahoe says he plans to tell Wall Street securities analysts on Thursday at the company’s analyst day that eBay can now “go on the offensive” by building on its early momentum with mobile shoppers and that it will better integrate sister products like PayPal, the online payment service. But he is not expected to announce any major new products or services. Read rest of story
Questions for discussion:
- What is Ebay’s competitive advantage?
- Will Ebay continue to lose market share to its competitors? Why or Why not?
- What would you reccomend that Ebay do to continue with a pattern of growth into the future?