Question 1. How have the characteristics of digital media supported eBay’s growth?

“Digital media refers to audio, video, and photo content that have been encoded”. (n.d)

“Today media can be accessed in many ways, including with hand held devices like mobile phones, laptops, desktops, mp3 players, and more”. (n.d)
Nearly twenty years ago, the term internet was almost unknown to many people. However, today, the internet has become the one of the most powerful communication tools available, with eBay being one of the first websites to take advantage of the many possibilities the internet had to offer. It showed how the characteristics of the digital media and the internet can help expand a business.
Having the internet at the center of the business, eBay has been able to offer buyers convenience and accessibility. Users with access to internet connection, whether on a computer or mobile device, can visit eBay at any time to compare prices and make purchases, without having to leave their homes or offices anywhere around the world. By being independent of a location, eBay has been able to reach into global markets and increase their consumer base.
Digital media has impacted positively on the growth of eBay because through the use of digital technology business owners can: * create content of marketing messages * deliver these messages across diverse media * optimize these messages through systematic targeting and measurement of impact * build strong brands * strengthen strategic relationships.
Digital media backed up by social media now allows for greater feedback. In earlier periods the email was seen as a one way street, with the sender not being certain whether the message reached the targeted recipient unless a response was received. However, instant messaging has helped to overcome this short-coming. Digital media enabled the company to deliver excellent customer service with a focus on feedback, which permits the company to stay connected.
Through its research, the company was able to utilize a mix of fixed format sales and auctioning. Seller dashboards were also used as part of the strategy to monitor its programs. Later, multiple purchases were encouraged, thereby, offering shipping discounts. Digital media was also used to expand visibility among internet shoppers.
Going global was also a major benefit and in the process was able to reach buyers around the world with little or no risks. Bulk purchase was another strategy employed in the program of growth. Additionally, a broad range of computer applications was developed as well as tips were given for the creation of an information center.
“While, traditionally, the greatest share of eBay users (97 percent) has been savvy buyers, increasingly eBay is regarded as a very smart alternative for sellers seeking to distribute their wares”. (n.d)

Question 2. How have strategic decisions supported growth?

eBay has instituted a number of strategies for growth with the objectives of the main categories on increasing: 1. Acquisition – the number of newly registered users 2. Activation – the number of registered users that become active buyers and sellers 3. Activity – the volume and value of transactions that are conducted by each user.
“eBay Marketplace growth is also driven by defining approaches to improve performance in: First, increasing the number and size of categories within the marketplace, for example: Antiques, Art, Books and Business & Industrial. Second, formats for interaction, the traditional auction listing and another format, the ‘Dutch Auction’ format. eBay Stores was developed to enable sellers with a wider range of products to showcase their products in a more traditional retail format. eBay says it is constantly exploring new formats, often through acquisition of other companies, for example through the acquisition in 2004 of mobile.de in Germany and Marktplaats.nl in the Netherlands, as well as investment in craigslist, the US-based classified ad format”. (Chaffey 44)
In order to increase the number of newly registered users on the eBay Marketplace, eBay has acquired many subsidiaries and formed partnerships with other firms, for example;
PayPal: founded in December 1998 and bought by eBay in 2002. PayPal’s purpose is to “build on the existing financial infrastructure of bank accounts and credit cards and use the world's most advanced proprietary fraud prevention systems to create a safe payment solution” (The eBay Company).
“Another acquisition is Rent.com, which enables expansion into the online housing and apartment rental category. In 2007, eBay acquired StubHub an online ticket marketplace, and it also owns comparison marketplace Shopping.com.” (Chaffey 44)