John Donahoe took over as president and CEO of eBay Inc. in March 2008, during an unfavorable time for the company. Since its inception in 1995, eBay has experienced revenue and earnings growth year after year, but the growth rate has slowed since 2006. For the first time, eBay's revenues fell from the previous year, down by 7 percent in the fourth quarter of 2008. Although eBay is still the industry leader for online retailing with 17 percent market share, it has lost market share to innovative key competitors such as Amazon, Yahoo! and Google. The expensive acquisition of Skype (a communications software company) did not have the outcome former CEO, Meg Whitman, expected. The company's venture into China failed, and changes in seller fees have not provided the results that eBay executives had anticipated. In addition, there have been lawsuits related to counterfeit products. In March 2008, Meg Whitman stepped down as CEO and was succeeded by John Donahoe, who has to confront the current situation. In a fast-cycle market such as online retailing, how can Donahoe discover new competitive advantages and regain eBay's market share and growth rate while confronting a more complex international and legal environment? In particular, Donahoe now faces a global economic downturn, a struggling e-commerce industry, and company shares trading between $10 and $11 below their prior year price of $40.