eBay Inc is American based multinational e-commerce company in California. The corporation facilitates business-to-consumer and consumer-to-consumers sales via website. It is a global leader in commerce industry which connects millions of sellers and buyers across the globe. The company believes in exploiting the economic opportunities for entrepreneurs, individuals, organizations, and businesses of all sizes. The portfolio of eBay includes eBay classifieds group, and eBay marketplace which are operating in around 190 countries of the world (eBay, 2020).
eBay VRIO/VRIN Analysis
VRIO is an analytical technique used for assessing and evaluating the resources and capabilities of the company and competitive advantage. It is the acronym of initials of evaluation dimensions. VRIO stands for Value, Rareness, Imitability and Organization. Here is the detailed VRIO analysis of eBay.
Value
This is the first component of the model which believe in resources should be valuable. The valuable resources bring the efficiency and effectiveness in business operations. It helps the company in implementing strategies which strengthen the market position and mitigate the threats. eBay is an-ecommerce business which connects buyers and sellers across the world. Its business model is highly valuable in the industry. To maintain the e-commerce website and connects different part of the world requires advance technology, which eBay manages very well. Its agreement with PayPal is highly valuable as it provides great benefit of security to consumers (Le, 2014).
Rarity
This is the second component of the model that focuses on rarity of the resources. The resources and capabilities of the company should be rare, which means only few or one company should possess them. Or else, every firm will use it in the same way, and the exclusivity will be finished. The technical proficiency that eBay has is rare, as it provides the services without any glitch. The company believes in securing the customers and sellers both in case of any mishap with the parcel. The customer service of eBay is highly valuable and rare as it completely takes the responsibility and cater its customers wisely. It deals in all kind of products, high price to low price, which requires lots of user trust (Arias, 2014).
Imitability
It is important for the companies to have unique resources which should be costly to imitate or hard to find the substitute for. The companies can make itself odd one out in the industry by possessing such resources. The uniqueness of the capabilities and resources will help the firm in attracting more consumers. e-Bay is operating across the globe, which is costly to imitate business model, as many risks are involved along with efficient strategies. This requires lots of investment and efforts and partnership agreements to avoid any mistakes. The brand awareness it created in short span of time is also very difficult to imitate, but few companies can copy the strategies (Perry, 2018).
Organization
This is the last component of the model, which deals with organizing the resources and capabilities. The resources will be mess if not treated properly in an organized manner and will not be advantageous for the company in long run. eBay is highly organized e-commerce business with strong rand recognition across the world. The company has skilled and trained staff wo helps it running the business and e-commerce operations very efficiently. The resources of the corporation is well manged (Arias, 2014).
Conclusion
eBay has achieved sustained competitive advantage in the e-commerce industry and has achieved huge customer base who trusts the company’s operations. It takes good care of resources and capabilities and continuously strive hard to bring more innovation and improve services.
References
Arias, M. 2014. eBay case analysis. [Online], Available at: https://prezi.com/9edvvizfviev/ebay-case-analysis/, [Accessed on: 18th May, 2020].
eBay, 2020. About us- company information. [Online], Available at: https://www.ebayinc.com/company/, [Accessed on: 18th May, 2020].
Le, T. 2014. eBay presentation for strategic management. [Online], Available at: https://www.slideshare.net/LeTheHien/ebay-presentation-for-strategic-management-class, [Accessed on: 18th May, 2020].
Perry, A. 2018. VRIO analysis of eBay. [Online], Available at: https://www.case48.com/vrio-case/19880-eBay-Partner-Network-A, [Accessed on: 18th May, 2020].