• accelerating existing categories, like used cars; (source: AuctionBytes.com)
• penetrating new categories that are more complex, hi-touch, like new cars, real estate and personalized services, through alternative lead-generation; (source: AuctionBytes.com)
• monetizing new marketplaces like Kijiji, Shopping.com, Rent.com and Mobile.de through pay-per-call and helping to differentiate those marketplaces from the competition; (source: AuctionBytes.com)
• expanding eBay's global footprint into emerging markets like India, China and Russia, which are typically characterized by gray markets, low levels of trust, a culture of haggling, and price sensitivity, as well as facilitating cross-border trade. (source: AuctionBytes.com)

The many acquisitions of eBay, may make one wonder exactly what eBay wants to be when it finally settles down and grows up. No doubt, one needs to keep up with the changing times and continually study the competition from every angle. In some cases, it may be a good idea to assimilate the competition, as opposed to starting from scratch. In others, it may be wise to acquire a minority stake in the competition in order to study the opposing model and then launch a series of competitive models. In the case of Craigslist, eBay may have had good intentions from the start, however, elected to parlay the knowledge and experience of an ongoing concern into one of competition. In other words, the bear may have gotten his nose stuck in the honey jar (this time) and may not be able to get it out without a few stings along the way. 

Is eBay in some type of identity crisis? eBay appears to want to be Amazon one day and Craigslist the next..

In defense of eBay, even a Fortune 500 company can find themselves "double-guessing" as to which way to go. Can we take what we have and improve on it? Are our shareholders better served by accelerating our growth through acquisitions? With every newly created addition (or acquisition), comes the risk that you may gain market share over the short-term but, lose appeal to both buyers and sellers in the long-term. Sometimes, offering too many selling/buying venues (within the same venue) simply translates into shuffling users from a "known" to an "unknown" thus, creating general mistrust and subsequent distrust of the brand, it's CEO and Board of Directors.

The consensus seems to be that eBay is no longer the 800LB. gorilla room inasmuch, a company, which has resorted to using gorilla tactics in the treatment of its seller base. eBay was once a company, which had connected with both its buyers and sellers. While eBay stayed this course initially, eBay soon strayed away from a model of success by way of switching gears, one too many times. eBay sellers once viewed eBay as a "hey! look at me" type of market place but, it now appears that in a short period of time, eBay has evolved into a "hey! look at us" corporation. eBay is (at times) enamored with the thought any press is good press (no matter how bad that press actually is). The eBay mantra of "look at me grow!", "look who we acquired today!" and "see what can do!" is nothing more than pulp for the press.

The real (r-e-a-l) world is full of "bad deals" and "what in the world we're you thinking at the time you made that decision" hard to answer questions..
 
One prime example of questionable decision-making would be eBay's acquisition of Skype. The Skype acquisition was an embarrassment to eBay and may have initially cast eBay as a potential "pawn in a con".

However, as the facts came to light, pressure came to bear down upon those in a decision-making capacity. The decision to keep Skype or, sell it off, now falls under the control of John Donahoe, the newly installed CEO of eBay.

Mr. Donahoe then flexed his muscles some more by agreeing and/or approving changes to feedback, which raised the hair on the neck of eBay sellers. But, he didn't stop there and more changes were rolled out one after another.

Those who are "short" on eBay stock may benefit from Mr. Donahoe's future decisions. Shorts love chaos and eBay appears to have plenty of chaos to go around. Longs, on the other hand, are content in riding out the storm (even if it's a perfect storm). Longs have patience and have a "wait and see" attitude, however, longs must also be proactive when the needle starts touching the red zone.

Whether one owns one or a million shares of eBay stock. One has to be attuned to ALL of the indicators. Indicators (which can be overlooked) are tied directly to customer satisfaction. An eBay spokesperson recently stated that sellers are customers too! However, if the sellers are unhappy, they leave. If enough sellers leave, listings go down, as do revenues (across the board). Even if self-exiled sellers are replaced by new sellers, earnings will be affected as "newbies" will take their time acclimating themselves to a new selling environment. In addition, the new changes just might put-off those who would even consider selling or buying on eBay.

If the negative eBay press machine continues and message boards, forums, You Tube shorts and horror stories continue to gain momentum on the net, eBay's brand may become tainted to the point of no return.

Power Sellers Unite is a good example of eBay sellers banding together, who are a making a difference. PSU could be viewed as a thorn in eBay's side, as there seems to be no stopping their call-to-action. Alexa traffic rankings place PSU within the Top 50,000 sites on line.

History repeats itself..

Michael Eisner is a good example of a CEO who handled both shareholders and a Board of Directors like a lion tamer with a whip and a chair. Eisner was liked, disliked, loathed and revered (sometimes all at once). However, over time, a struggle from within ensued and Eisner was out.

If Donahoe is not an interim CEO and continues on his present course of "change" eBay may falter (dramatically), to the point of lackluster earnings and eventually become ripe for the picking as a potential buy-out.

While Bay has spent a great deal of time acquiring medium to large size organizations in an effort to grow maintain revenues and capture market share, eBay's growth may be stunted (solely) by its own CEO's penchant for change.