EBay Case Study Term Paper Example | Topics and Well Written Essays - 2250 words

EBay Case Study - Term Paper Example There are number of ways through eBay creates value. State-of-the-art systems and tools have been developed by the company. Such tools and systems have increased the productivity of the network members. Furthermore more number of members is encouraged to join the network. Such tools include the Turbo Lister service and Seller’s Assistant. The first one is capable of tracking and managing thousands of mass listings on the home computers, whereas the second one helps new sellers as well as makes professional-looking online listings. EBay has also set up and maintained performance standards which augment the steadiness of the system. Buyers and sellers are allowed to rate each other. Such ranking system bolsters users’ confidence level Sellers having good reputation among the buyers, attain the Power Seller status and those having bad reputation are excluded from any kind of future transactions (Iansiti & Levien, â€Å"Creating Value in Your Business Ecosystem†). Mo reover, value created by eBay is shared with the members of the ecosystem. A moderate fee is charged from the users for allowing them to coordinate their various trading activities. Incentives in the form of special status (Power Seller) enhance the standards of the sellers and this benefits the entire ecosystem. c) What is the source of eBay’s competitive advantage? The major source of eBay’s competitive advantage is its social capital. Social capital is referred to the trust, goodwill and credibility.