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Q1.

The following are some characteristics of digital media that has supported eBay's continued
growth;

a) Ubiquity
Ubiquity jn general terms refers to being present in several places simultaneously or
being present everywhere at once. This feature refers to the fact that prospects and
customers can access a bussines service from anywhere, anytime on any device.
Companies that are dominant in thier market are able to sell product nd service to
customers everywhere. Customers can shop for goods online at anytime from anyplace
and at anyplace.
In eBay's case, ubiquity has helped them to achieve superior margin in the sense that
consumers and sellers experienced greater convenience of having a product delivered
rather than the cost of time and transport. This has led consumers to take advantage of
the low price offered by eBay with less than physical stores.

b) Interactivity
For the past decade, the internet has been perceived to be an idea medium for building
relationship with cusumers thanks to its interactive capability. Interaction is a
fundamental building block of a relationship. Building a dynamic relationship is
dependent on each other's perception of the other's commitment.
Similarly, consumers may perceive a Web site relationship investment through its
interactivity. A Website relationship investment maybe perceived as higher when the
site is perceived as more responsive, providing more options to choose, and allowing
instant feedback. eBay's website provided active control, two- way communication and
synchrocity to consumers who visited their website. Studies have found that
heightening the level of a user's control might make consumers more engaged and
involved, which will lead to a positive evaluation of the site. This positive feeling may in
turn contribute to reinforcing one's perception of the company's website. eBay's
website allowed customers to communicate and recieve feedback as well. Customers
also thought of eBay's site as more accessible which was for building a sustaining
relationship. eBay's interactive website helped them in yielding a greater outcome
which has lead to the continuous growth of the company.

c) Information density
The use of website, social media and others reduces the cost to store, process and
communication information. At the same time, accuracy and timelines increase ; thus
making information accurate, inexpensive and plentiful. For example online shopping
process allows a company to recieve personal, shipping, billing and payment
information from a customer all at once and send the customer information to the
appropriate department in a matter of seconds.
d) Richness
Richness of information refers to the complexity and the content of a message. Users
can access and utilize text messages and visual and audio component to send and
recieve information. This aspect provide informational experience in regards to E-
Marketing and the consumer experience. eBay's website allowed consumers to look at
or purchase the product and send information about the product via email or other
platforms. Due to this, the company was able to advertise more , also it's enhanced the
eBay brand wich in turn attracted more customers all over the world to make purchase,
therefore increasing their profit margin.

Q2. Environmental challenges are all the internal and external elements which can affect
the organization performance. In the case of eBay i will use the SLEPT environmental
model to asses the implications for the sustainability of the organization. Below are
some of the environmental challenges of eBay company;
Political factor
In this aspect, political influence on the external business environment is considered. In
this case, eBay macro environment is subjected to the effects of Government which is
relevant to the business. For example the company6 online market place is subjected to
governmental influences in the United States. The company strategic management must
exploit political opportunities identified in the external analysis of its international
business .
The following external factors represent political influences on eBay;
1. Government support for e-commerce
2. Government support for IT infrastructure development
3. Strict anti- trust policies
eBay can grow its business by expanding its online marketplace in other countries
whose government are increasingly supporting e-commerce.
Economic factor
eBay e-commerce industry environment depends on economic growth or decline
that relates to consumption levels. This part stresses the economy's significance as a
determinant of strategic management success in growing online marketplace. The
following economic factors are viewed as influencers in eBay's external environment
1. Rising disposable income
2. Rapid growth of developing countries
3. Economic stability in developed countries.
For example eBay can strategically expand its online retail/auction service in
these developing market to generate more revenue from rising trade.

Social factors/ Sociocultural factor


The sociocultural trends are assessed in their effect on the company's macro-
environment. These trends are external factors that influence the behavior of
people, including the employees and customers of business.
eBay's case involves social trends that affect how consumers and vendors use
online retail and related websites. Based on this, the company's management
and strategies must suit such trends in the environment.

Legal factors
Legal factors refers to the legal system pertinent to the macro-environment of
the business. For example, eBay business must comply with regulations
applicable to the industry environment. Such external factors are linked to
government policies in areas where the company operates. Transactions among
buyers and sellers must comply with existing rules.

Q3. A strategy in simple term is a careful plan or method. eBay's strategic plan
was based on three elements namely; Acquisition, Activation and Activity.

Acquisition can be explained as the process of attracting and retaining new customers through
digital marketing strategies. It combines media, online resources and engagement tools to
promote awareness about your business, encourage customers to consider purchasing your
services or products and make future repeat purchases. The goal of acquisition is to create a
sustainable and systematic flow of new customers using acquisition tactics that evolve with
new trends and technology.

Through this strategy, eBay company was able to Increase thier revenue so there was money
for paying employees, meeting costs and reinvesting in the business so it can grow.

Secondly, acquisition helped eBay to Identify new market niches or demographics, along with
the strategies to best reach their potential consumers.

Activation

Activation is an event, campaign, or any interaction through which a company drives customer
actions. This technique aims to generate brand awareness, build lasting relationships with the
target audience, and develop customer loyalty. It helps engage more customers by enabling
them to interact with a certain company directly. Activation is an excellent opportunity to
present your brand and create emotional connections with your future buyers.

Activity
The last but not the least strategy which eBay used is the activity. Activity refer to the
operations that enable organization to bring together the right product and the right
consumers at the right time through the Internet as a marketing tool or channel.

The use of digital marketing activities has rapidly increased due to the rapid growth of the
Internet. These activities has helped eBay to achieve the following below,

combined in the following three main categories:

Get new customers.

Keep the customer, from leaking out to competitors

Grow the customer, by studying their needs and providing solutions to them in the form of new
products and services

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