Need help with project about ebay!

[apanda0622]

So for my Strategic Management class, I have a case about ebay in which I have to make an orginial strategy for ebay in 2008.  That means I have to ignore everything they have done since 2008 like best offer, ebay bucks, etc.
 
Now the case is a few pages but here is the short verison:
 
 In 2008, ebay profits in the US were down because the finanical crisis just hit.  Many sellers were selling, but not as many people were buying obviously.  Also, their largest percentage of customers are in their 50s an baby boomers.  Their CEO had changed from Meg Whitman to John Donhaue, and he wanted to focus on fixed cost selling.  Ebay currently owned Skype, Paypal,and Kijji.  Ebay's biggest competitors were Amazon, Google, Yahoo, and Craigslist.

International sales were growing, but ebay pulled out of China because their current strategy was not working and Taobao, their competitor in China, was doing very well.  Also, ebay has had legal troubles with selling counterfeit products in the US and in other countries.
 
Now for my project, I'm supposed to identify the key issue facing ebay in 2008--this is what I chose and why:
 
Growing in the US - finding younger customers - Team up with Facebook since their growth is expected to be fast in 2008.  Facebook launched marketplace - classifieds in 2007, but not sponsored by anyone yet, so ebay could sponsor it thru Kijji.  Also, intergrate ebay auctions in to profile likes on facebok.

(Note:  In 2007, ebay thru Skype had teamed up with Myspace.  This could remain or could eventually go to facebook b/c myspace users decline as facebook grows).
 
Now, I did not choose growing internationally as a key issue because they are already doing well.  Plus, I don't know if ebay can really compete with Taobao in China becasue they do sell counterfeit products (as we have seen with MLP prototypes).
 
So with the info I have given and your knowledge, what do think about the case and the strategy I chose?  Please any feedback would be much appreciated.
 
 

[teresat]

I think your breakdown is really well done.


The Facebook team-up is a good idea. It's just hard to ignore everything they've done since then.


One thing I can think of is to apply techniques and topics that your instructor has emphasized up to now.


Good Luck!

[kaoskat]

I think the Facebook connection would be good too. That's where you find the younger group.