This case has been made to explore strategic interactions among organizations with distinct business models. The case considers how a competition challenged the incumbent in a platform market defined by strong network effects and switching costs that are high.
The case enables students to assess the advantages and pitfalls of eBay's platform business model in comparison to Amazon's retail business model; to appraise business model operation when worth loops of two sector players socialize; to examine how Amazon enlarged its business model and beat barriers to entry in a platform market that generates winner-take-all effects for first movers; discuss how eBay can react to the new competitive dynamic, researching both the tactical and strategic exchanges; and evaluate the strategic inferences of eBay's 2011 acquisition of GSI Commerce.
PUBLICATION DATE: April 03, 2012 PRODUCT #: 714P03-PDF-POR
This is just an excerpt. This case is about STRATEGY & EXECUTION
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