Ebay Takes On Amazon Discussion

Visit and explore the websites of eBay, GSI Commerce, and Amazon.com. Read the required Steigrad article.  Respond to the following:
a. Consider the article’s statement, “The deal will takeeBay one step further away from its decelerating auction model whilestrengthening the company’s fulfillment and customer service operations,two of Amazon’s strengths.”
• Why might eBay’s auction model be “decelerating”?
• How will the acquisition of GSI “strengthen eBay’s fulfillment and customer service operations”?
b. Was the acquisition of GSI a complementary orsupplementary fit into eBay’s strategic portfolio of products?  Why?
c. According to the article, analysts estimated Amazon’s2010 revenues to be $44.93 billion, while eBay’s was only $10.47billion.  How effective might this acquisition be to achieve the goal of“chipping away at rival Amazon.com Inc.’s lofty online retailingbusiness.”
d. Was this acquisition a good strategic decision?  Why or why not?
Explain your rationale.  Respond to at least two of your classmates’ postings. 


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