What is e-Bay’s core competency? How does it relate to its chosen strategy?
e-Bay’s competencies lie in its software, which allows people to trade with little supervision. It also has competencies in dispute resolution, an automated item listing service, an online financial service and a communications platform. The integration of these allow e-Bay to have a more efficient and effective trading tool used and policed by the buyers and sellers in the site.
What are the implications to the challenges identified in the case regarding e-Bay’s strategy today and the future?
The challenge on translation software has the least amount of impact considering that even the users of the site are content with “pretty good.” An improvement in this area though, would make the service more reliable. Government regulation challenges are perhaps one of the most difficult. With new laws constantly passed in countries, some laws that touch on trade could prove a hindrance to e-Bay’s expansion and could restrict their operations. Unless the world becomes more open to the flow of goods, then e-Bay would constantly face problems. The digital divide is a less serious problem.
With technology catching up to many countries and becoming more available and cheaper, it is only a matter of time before the internet becomes available to poor communities. Cultural attributes is one of the most problematic. Since beliefs take so much time to shape and that reactions are unpredictable, it is important for e-Bay to be able to make their strategies localized and adapt it to the current system. Finally, international expansion is an unpredictable challenge, but could prove successful if their users continue to support and trust the company for their trading needs.
Which candidate should the committee nominate for the assignment? Why?
The first choice would be Brett Harrison because of his experience in running line activities and supervisory staff and being rated as an excellent worker. More importantly, he has knowledge about the country which is one of the most important things in running the operations of the company there. If he doesn’t agree because of familial considerations, then, Ravi Desai should take his place, not only because of his knowledge of the country but also because he has experience in handling large operations.
Should all the candidates receive the same compensation package? If not, which factors influence each package?
The candidates should all receive the same principle in their compensation package: a common basic salary and a bonus dependent on their performance and contributions to the company.