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 take
eBay one step further away from its decelerating auction model while
strengthening 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 or
supplementary fit into eBay s strategic portfolio of products? Why?
c. According to the article, analysts estimated Amazon s
2010 revenues to be $44.93 billion, while eBay s was only $10.47
billion. How effective might this acquisition be to achieve the goal of
chipping away at rival Amazon.com Inc.’s lofty online retailing
business.
d. Was this acquisition a good strategic decision? Why or why not?
Explain your rationale. Respond to at least two of your classmates postings. MUST USE OWN WORDS NO PLAGIARISM!!!!

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