EBay’s Strategy for management of the upstream and downstream supply chain is that it use both push and pull Tactics to try sell there merchandise as well allow the users to sell and purchase there own goods. EBay also allows companies to advertise there own goods on the website, as mentioned before eBay uses push and pull tactic’s to sell its goods as they emphasis on the distributions of a product to passive customers and its also use the pull supply chain tactics to emphasis on the delivering value to customers who are actively involved in product and service specification. It eBay’s main method of use is push SCM.
eBay has vertical integration in place as the organisation actives are undertaken and controlled within the company so it is control if it is trying to advertise good on the site. When comes to the vertical integration eBay is not really involved with this method as it does need to use method because it is mainly used for specialised or propriety production, it would also not really use vertical disintegration as this involves out sourcing, and a network of suppliers, this aids in cost reduction and it focuses on the core capabilities, eBay would use virtual integration method as it would have total reliance on the linked third parties, and it would have to close relationships with the suppliers, and this really aids the companies that use eBay as a marketing tool as it has the benefit of rapid market penetration the dot-com approach. In this approach though there is a lack of physical structure, and it has a very big reliance on knowledge from the users, it has to have the use of communication technologies, this can be very expensive initially for the user, it does allow mobile work to accrue, another characteristic of this is that its boundaryless and its inclusive flexible and responsive.
