Organizations normally reformulate their marketing strategy several times during the life cycle of a product. Economic conditions change, competitors launch new assaults, and the product moves through new stages of buyer interest and demands (Kotler, 2001, p. 484). Therefore, a business must plan strategies to suit any changes in the market. ebay Inc. is the world's largest and most popular person-to-person trading community on the Internet (Bradley, 2001, p. 1). Since its inception, however, eBay has remained unchallenged, with the entry of amazon.com (Amazon) into the online person-to-person auction arena and other competitors to Yahoo! Auctions, Auction Universe and OnSale, eBay was faced with the question of how to stand out from its competitors and maintain its leadership in an increasingly crowded market. Michael Porter said that value is what buyers are willing to pay and that higher value comes from providing the unique benefits that more than offset a higher price. There are two basic types of competitive advantage: cost leadership and differentiation (Porter, 1985, p. 3). Trying 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 without any fees. eBay must therefore be able to differentiate itself from its competitors in order to maintain its leading position in the market. Differentiation is the act of designing a set of meaningful differences to distinguish the company's offerings from those of competitors (Kotler, 2001, p. 90). eBay should focus on creating a product or service that is perceived as unique across the industry. Services are extremely difficult to differentiate, but Kotler (2001, p. 90) notes that services are able to differentiate themselves by developing a differentiated offering, delivery or image. eBay will continue to be a market leader if it can continue to differentiate itself by focusing on its branding, continuing to offer innovative features, and providing a delivery service with proprietary technology. This uniqueness should result in higher profit margins and keep them above the competition. Service companies are able to differentiate their image through symbols and brands. A recognizable brand name is extremely important to eBay's continued success. eBay was the first player in the online person-to-person auction industry, and with that, it has a competitive advantage that will help it differentiate itself from its competitors. By focusing on its branding, eBay will be able to achieve brand recognition, brand preference and brand loyalty. With strong branding, consumers are able to recognize the eBay name and instantly know what it stands for and the service it offers..