Ebay Turnaround Strategy Essay

The company known as eBay, which started in 1995, grew significantly within a decade to become the number 1 e-commerce site in the world by sales revenue. In 2008, Donahoe took over as the untried CEO of eBay. This was a clip when the company was facing issues with growth and consumer demeanor was changing. What used to be a excite experience for buyers was now an inconvenient crazy of time and money. Consumers who were eager to bid against each(prenominal) other for products online were now satisfied with purchasing new products at rooted(p) prices.Therefore, ebays lapse strategy was to bring the consumers the better(p) experience to find what they want precisely how and when they want it. Although traditional eBay sellers complained about the hindrance for them to do avocation profitably with the new strategy, Donahoe believed buyers wanted fixed prices, quick service, and b atomic number 18 shipping. I agree with Donahoes turnaround strategy because eBay had to focu s on the mart demands to see growth.Something had to be done in a grocery where consumers wanted fixed prices and free shipping that they were receiving from companies equivalent Amazon. om. trade segmentation is dividing a mart into littler segments of buyers with distinct implys, characteristics, or behaviors that might guide fork rateting and develops profiles of the resulting merchandise segments. Creating applications for impertinent phones and t qualifiedts was a good way to separate a specific department to its customers. For example, the eBay fake app allowed users to browse through products from the fashion department. Buyers were able to take time out of their twenty-four hour period and make more purchases with mix and bear on features.Using the Boston Consulting Group (BCG) method, companies manage eBay classify all its SBUs according to the growth-share matrix. marketplace growth rate provides a flyer of market attractiveness and relative market share mea sures a companys strength in the market. The four types of SBUs are stars, cash cows, question marks, and dogs. Stars are high-growth, high-share businesses like eBay. When their growth slows down it turns into cash cows, which need less investment to hold their market share.Pepsi is a cash cow in the sense that its not growing notwithstanding it is making extended profit in the meantime. Question marks are low-share business units in high-growth markets. A question mark could be a junior-grade store that does car repairs because it has a small market share but a large demand for car repairs. Dogs are low-growth, low-share businesses and products that may generate enough cash to confirm themselves. An example of this would be a small town theatre business.