EBay has seen myriad chances and opportunities to change its business model. According to Laudon and Traver, the greatest challenge that the web company face, involves shopping where the buyers’ needs are not comprehensively met (760). This is because most buyers usually have the intention of buying their goods on spot as opposed to waiting for the fall of the hammer.
Auction of goods was prevalent in the site. To counter this chalenge, the manger, Donahoe saw the opportunity to adopt the fixed price sale of the goods which he termed as a more predictable method of selling besides being friendlier to the customers (Laudon and Traver, 2010, pp 764). As opposed to previously held belief of an opportunity to improve the organization, the shift in eBay’s strategies elicited criticism and received scathing attack from the shareholders who questions the ability of the strategy in enhancing faster growth in the E- commerce industry.