Analyzing eBay Platform Strategies: An Application of Meyer's Product Platform Strategy Model

Nowadays, it is no longer possible to dominate large markets by developing one product at a time. Increasingly, high-technology companies are turning to platform-based product development in their quest to manage the complexity of offering greater product variety. Like the traditional automobile industry, where product platforms are used pervasively, companies that make nonphysical or intangible products, such as software and computer-based information services can also benefit from adopting an effective product platform strategy. eBay is such a company that uses its platform strategies to support its rapid growth and its wide-array of e-commerce based products: software and services to handle auction transactions, process payment transactions, and provide peer- to-peer communication for its user community over the Internet. This paper looks at eBay's three platform strategies: eBay platform, PayPal platform, and Skype platform; uses Marc Meyer's product platform strategy model to illustrate these platforms; discusses the implications of these strategies to eBay's overall success as an industry leader; and offers product platform management insights and recommendations for eBay's platform future.