Question: what are EBAY challenges right now? what strategy should the management employ to overcome those challenges? 

Answer: eBay faces a lot of challenges right now. Once it was the darling of internet stocks, but not anymore.\n\n1. Its main auction model is slowing as ebay faces maturity = to achieve growth, it will have to do so not with its auction site but its acquisitions such as Paypal and eBay. Forbes Magazine has an interesting article on this   http://www.forbes.com/markets/equities/2006/05/08/ebay-skype-0508markets04.html\n\n2. Stiffer competition particularly abroad = early this year, eBay had to scrap seller transaction fees in China due to significant competition from Alibaba.com. Even in Korea, Yahoo is aggressively challenging eBay  http://www.redherring.com/Article.aspx?a=17139&hed=Yahoo+Challenges+eBay+in+Korea\n\n3. Sellers are looking for other (cheaper) channels to sell their products = ebay's fees are continuously rising, and sellers are looking for ways to sell their items. They are flocking to ebay's competitors or creating their own ecommerce site\n\n4. Competition from Google = Google has developed GBuy or Google Checkout, which is its main challenge to Paypal http://www.forbes.com/markets/2006/06/09/google-0609markets09.html
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