Sample Essay

The three mentioned benefits which are highlighted in the case are very relevant to the business model eBay. The first highlighted benefit pertains to reducing friction in the virtual marketplace through the introduction of VOIP facility on the internet. By incorporating this facility eBay can offer its customers for fixed price products as well luxury products to contact the company through VOIP and get to know more about the product. This would increase sales for the company as the customers would be more satisfied and confident about making the purchase.

Similarly the pay per call model would enable eBay to make additional revenue from enabling communication between buyers and sellers. This would provide an alternative source of revenue for the company as well as enable the customers online to be more confident and satisfied with the purchase they are about to make.

The third benefit pertained to the operations that eBay would have for cross selling. eBay is a well established company in the US while its operations, while Skype has been known for its operations outside of US. Using this to the strategic advantage eBay can make use of the technology and the platform of Skype to target the extensive market in Europe and Asia.

Conclusively it can be mentioned, that the three advantages of the acquisition highlighted in the case are prominent and strategic in nature enabling eBay to increase its revenues and profits as well as its market share.

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Essay: “Three (3) benefits” of acquiring Skype
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