EBay goes on a shopping spree

EBay goes on a shopping spree

Introduction

EBay is an American multinational internet consumer to consumer corporation. It is an online auction and shopping website which provides a platform, for people to buy and sell a whole diverse range of products and goods. EBay was found in 1995 by Pierre Omidyar. EBay is currently present in approximately 30 countries worldwide. Recently EBay has made numerous acquisitions around the world and it plans on changing some of the previously used mechanisms in order to make auctions. EBay deals with a huge variety of products; it has become a source of income for many people. Some of EBay's major competitors include Amazon, Craigslist, myAuctionNetwork, deal finder and so on.

Thesis statement

Can EBay successfully manage all its acquisitions while equally focusing on the overall business as well?

Purpose of the Paper

The purpose of this paper is to look into some of the new applications EBay plans on implementing, along with so many acquisitions, this paper analyzes if EBay can continue performing like the past and generate revenues while it deals with increasing competition and a whole new system that might not involve auctioning.

Overview of Paper

The paper will firstly answer a few questions to understand better the current situation at EBay and to be able to give useful recommendations at how it can further improve.

Discussion

1. Explain whether or not you think making so many acquisitions is a risky proposition and why?

EBay currently has at least 40 domestic and international acquisitions, an acquisition if properly sought out can prove to be quite beneficial for any company, the fact that EBay has acquired so many companies since its inception is proof that if planned out properly an acquisition can prove to be a serious benefit. However if not planned out properly it can give rise to various issues.The biggest issue that can arise in acquiring a company is the lack of information or understanding. At times both companies fail to thoroughly discuss the details about the acquired company and issues arise. Acquisitions need to be thoroughly planned and research needs to be conducted in order to understand the benefits of an acquisition. EBay made the mistake of acquiring the company stumble upon in 2007 the company is basically responsible for recommending web content to its users. The world was shocked at this acquisition as people could not understand the reason why. Eventually after 2 years ...