Identify an online sales company and explain how the concepts of complexity and divergence apply.

Topic 1 DQ 1

Apr 4-6, 2024

Identify an online sales company and explain how the concepts of complexity and divergence apply. Provide specific examples in your response.     

Beena Shaji

Apr 4, 2024, 8:45 AM

Submitted

Hello, Sir and Class

EBay is an example of a leading online sales platform that operates globally. Complexity within its supply chain is shown by the large size of its supply chain, which has numerous interconnected parts all working together to make products available to customers in all the locations covered by the company. The large number of sellers on the platform who sell millions of different types of goods means that the company’s supply chain is significantly complicated and needs highly efficient systems to manage storage and shipping (Mahmud, 2021). The company also maintains sophisticated algorithms that rank the millions of sellers on its platform based on their products’ popularity, making it easier for customers to find goods they may be interested in.

Divergence refers to the company’s diversified operations. Highly diversified operations create stability and improve overall financial performance. EBay has highly diversified operations due to the wide variety of products it sells. Millions of sellers offering different products are on the platform, meaning buyers can find almost all types of end-user products. At the same time, other businesses can also buy inventory for their operations (Nguyen & Guo, 2016). The company’s expansion to new markets internationally also makes its operations more diversified and ensures its market size keeps growing. New acquisitions of existing businesses also mean the company keeps growing its operations and venturing into new industries. Recently, eBay acquired over five other e-commerce companies, which added to its overall market share and improved its overall competitive position. Generally, eBay’s supply chain and operations are highly complicated based on the significant market it serves and its high sales volume every day. The company also has highly diversified operations that improve its financial stability and ensure continuous growth.

REPLY

NENorine Eixenberger replied to Beena ShajiApr 5, 2024, 10:25 AMUnreadThank you Benna.  Excellent example. A student from another class used eBay as an example of high complexity/divergence.  They were concerned with the huge number of sellers making it almost impossible to find exactly what they wanted. In a situation like this, we must also look at it from the seller’s perspective.  If eBay would cut down the number of sellers that appear it would easier for the customer but would shut out many of the very small sellers that eBay currently depends on.  Is there a tradeoff to help resolve this?  What are your thoughts?REPLY

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