E-BAY

E-bay

E-bay

Introduction

eBay, in the early pioneer of a certain kind of e-commerce, that the auction site. Launched in mid-1990's and turned into a public business in 1998, subject to eBay dealing stage in the market and acted on as an intermediary supplying pre-and post-value-added services in three major classes of online auctions: (System-Level conceive of eBay scheme http://www.wam.umd.edu/~adithya/SysEngg/Ebay.html )

Business-to-business auctions: an enterprise in which trade with other businesses in alignment to deal excess items, the gear utilised and the high-tech products.

Business-consumer auctions: a enterprise trading items and services exactly to buyers by the Internet. (Prince 2006)

Person-to-person auctions, which are going to little purchasers and sellers in a virtual full-time financial space. (Messmer 2007)

Since 1995, eBay skilled phenomenal attractiveness and important development, and contacted in the new millennium is the biggest online auction stage, which in 2001 assisted 42.4 million listed users and 423 million have helped these auctions worldwide. (E-Bay reveals wireless tendering service, http://news.com.com/2100-1033-932504.html )

PART 01 (A)

M & A

The term 'eBay' has become a generic term for online auctions. Other companies with such a strong position include Hoover for vacuum cleaners, and Google for search engines. Today it is common to hear that someone is 'ebaying' or is an 'eBayer,' or that someone is going 'to eBay.' eBay Inc. has made 48 acquisitions while taking stakes in 11 companies. eBay Inc. has 15 divestitures during this period. Although the difference in the endowments of knowledge complements the knowledge of the acquiring firm, if the difference is too great, the acquiring firm will not be able to understand, absorb and assimilate the target's knowledge. Vermeulen and Barkema (2001) have argued that the degree of relationship between the activities of the firms implicated in the M&A moderates the ability to learn. “Acquisitions in unrelated domains may not lead to learning, since the acquiring firm lack the basic knowledge necessary to absorb the new experience”. In this study, most of the operations took place between firms of the same industry, which helps to explain the high knowledge base of the acquiring firms.

The second result found in this study is the strong influence of the frequency of use of “rich” means of communication on the transfer of knowledge in the first year. So, the effort made by the management to increase this type of communications will lead to an increase in the transfer of knowledge, independently of the socially complex character of the knowledge to be transferred. The frequency of rich communication helps to mitigate the anxiety of personnel that is characteristic of M&As, and the lack of trust among the members of the two firms (Buono and Bowditch, 1989), facilitating, therefore, the interaction among the individuals of the two firms (Haspeslagh and Jemison, 1991). This result confirms those obtained by Ranft (1997) and Castro and Neira (2005), who found that the frequency of rich communication among the personnel of the combined firms promoted the transfer of knowledge-based resources, regardless of their ...