Organizations typically reformulate their marketing strategy several times during a product's life cycle. Economic conditions change, competitors launch new assaults, and the product goes through new phases of buyer interest and needs (Kotler, 2001, p. 484). Consequently, a company must plan strategies that address any changes in the market. ebay Inc. is the world's largest and most popular Internet personal trading community (Bradley, 2001, p. 1). Since its inception, however, eBay has been unchallenged by the entry of amazon.com (Amazon) into the individual online auction arena and by competition from Yahoo! Auctions, Auction Universe and OnSale, eBay was faced with the problem of how to separate itself from competitors and maintain market leadership in an increasingly crowded market. Michael Porter said that value is what buyers are willing to pay, and that superior value comes from providing unique benefits that more than compensate for a higher price. There are two basic types of competitive advantage: cost leadership and differentiation (Porter, 1985, p. 3). Attempting to compete on the basis of cost would be a bad move for eBay. Their competitors already offer lower costs, and many offer similar services at no cost. Therefore, eBay must be able to differentiate itself from competitors to maintain market leadership. Differentiation is the act of designing a set of meaningful differences to distinguish the company's offerings from those of the competition (Kotler, 2001, p. 90). eBay needs to focus on creating a product or service that is perceived as unique across the industry. Services are extremely difficult to differentiate, however Kotler (2001, p. 90) notes that services are able to differentiate themselves by developing a differentiated offering, deliver or image. eBay will continue to be a market leader if it is able to continue to differentiate itself by focusing on its brand image, continuing to offer innovative features and providing a delivery service with proprietary technology. This uniqueness should translate into higher profit margins and keep them above the competition. Service companies are able to differentiate their image through symbols and branding. A recognizable brand is extremely important to eBay's continued success. eBay was the first mover in the person-to-person online auction industry and because of this it has a competitive advantage that will help differentiate itself from competitors. By focusing on its brand image, eBay will be able to gain brand recognition, brand preference and brand loyalty. With a strong brand image, consumers are able to recognize the eBay name and immediately know what it stands for and the service provided.