EBay Inc.: The challenge of balancing growth and social capital

Understanding social capital

Understanding social capital has been a context that has been profoundly researched. The purpose of the research has been primarily to establish how social capital can help in social economic development. Using the E-bay business model, we identify a conceptual framework that has helped create a strategic business management and process apt for day-to-day decisions involving service, product design, pricing, marketing, branding, and promotion.

E-bay business model provides a clear picture of challenges of balancing corporate growth and social capital.

Economic growth depends entirely on social capital. Social capital is well understood as the pooled network of the social proponents including family and friends who form a powerful economic block that supports economic structures through purchasing and increasing economic opportunities of economic structures in the society.

Social capital and economic development

Social capital and economic development is being identified as force that has helped corporations with wider market share achieve its strategic plans. EBay strategic approach on social capital has helped the corporation achieve distinct corporate gains.

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Through establishing itself as a trusted social partner, EBay has managed to make use of social capital to achieve its strategic goals, especially in selling and making profits, increasing its market share and consumer retention.

How has that been achieved? The challenge of balancing corporate growth at EBay and social capital has been diverse. However, not all social settings and affiliations contribute to economic growth. Studies show that, there are millions of social networks and groups across the world. These do not tally as key pillars of social capital.

Only few social networks, groups, and affiliations contribute to generation of social capital relevant in economic growth.

EBay rapid growth

EBay rapid growth sounds more like a success story wherein, it’s strategic plans were actually too precise that, the firms profits increased so high and has been used to increase its asset portfolio. Increased sales and profits have been achieved through operational improvements and approaches increasing the social expenditure hence high profits and consistent sales. Nevertheless, does EBay feel confident that, this is in line with economic growth policy and whether gains made are felt in the society?

E-bay might be worrying about how they will balance the economic growth and create consumer retention. This is due to the challenging aspect of ‘how E-bay differs from its competitors, how it converts inputs to outputs, and consumer preference. The truly profound is that, economic growth leads to risks in market share portfolio’s due to competitors having leeways in the business structures of leading companies like in the case of EBay.

EBay’s share position, consumer preference to the company competitors, and product coverage have a wider effect on social capital in terms of how its split among the market.