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Their competitors already offer both lower costs and many offer similar services at no cost at all. Therefore, eBay must be able to differentiate themselves from their competitors in order to maintain market leadership. Differentiation is the act of designing a set of meaningful differences to distinguish the company’s offerings from competitor’s offerings (Kotler, 2001, p. 90). eBay needs to focus on creating a product or service that is perceived as being unique throughout the industry.
Services are extremely difficult to differentiate themselves however Kotler (2001, p. 90) notes that services are able to differentiate themselves by developing a differentiated offer, deliver or image...
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