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Businesses

+ - eBay's Innovation Machine?

Anonymous writes: CIOInsight.com has published a case study on eBay and its efforts to expand beyond online auctions. Writer Ed Cone says the company may struggle to meet investor demands unless it does so, despite double-digit growth rates and profits of $1.08 billion. "They are in a tough spot, because they're approaching maturity with the core auction business," says Sucharita Mulpuru, a senior retail analyst with Forrester Research Inc.

To make it happen, eBay is retooling its technology platform to "help its large sellers become more efficient and grow its fixed-price marketplaces, and turbocharge its international business, which has not developed as planned; in late 2006, eBay shut down its Chinese affiliate and entered a minority partnership with a Beijing company." The key is service-oriented architecture and a growing community of third-party developers.

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