...2002 Founded in 1995 by Pierre Omidyar and Jeff Skoll, the eBay online marketplace was developed in order to provide individuals a place to sell goods and services. eBay became a phenomenon that attracted some 10 million auctions in its first three years. This success provided eBay the necessary foundation to complete an initial public offering (IPO) in 1998. eBay’s online auction concept is relatively simple. Sellers register with eBay and use its suite of online tools to place nearly any item up for sale. Buyers navigate eBay’s vast array of categories or use search functionality to find goods or services that they wish to bid on. Once the auction is won, the buyer may use PayPal, the online payment service, to complete the transaction. Perhaps the most powerful part of the eBay process lies with the feedback scores that are given by both buyer and seller following the completion of the transaction. Feedback scores are public information and allow other buyers and sellers to determine whether a person is worthy of doing business with or not. A negative feedback on eBay is akin to having a bad credit score with a bank. By providing a marketplace for “new and scarce goods, end-of-life products, and used and vintage items,” eBay provides a valuable service in which they attempt to “make inefficient markets more efficient.[1]” While other Internet business models have failed in recent years, eBay’s business is thriving. In 2002, with more than 61 million registered users...
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...in the Online Auction Industry Prepared for: Dr. Patrick Kreiser Prepared By: Katelynn Coghlan Tommy Pauley Patrick Scott October 26, 2005 There is no doubt that eBay holds the power in the online auction industry. An analysis of the key factors of their company was compiled to find out what the eBay strategy is, and how they are doing financially. Also an internal analysis of their strengths and weaknesses and an external analysis of their opportunities and threats have been provided. Finally, a strength assessment of the main competitors in the online auction industry has been determined to see how strong each competitor is. From its beginning in a San Francisco living room, eBay has grown to be in a league by itself. Analysis of eBay’s Strategy and Business Model Before eBay could begin to compete in the online auction industry a strategy and business model needed to be developed (Appendix A). eBay had to define the businesses they would be competing in and how they would compete in those specific businesses. They also needed to define how they would be a successful service to their customers. Corporate level strategy eBay’s corporate level strategy was to become a diversified business. They wanted to diversify not only the products they offered but also their customer base and global reach. By using the eBay service you can find virtually anything you are looking for. Business Level...
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...relatively strong. The company is in an industry that is growing both locally and globally. Also the capital for launching an online website is very low. The bargaining power of buyers: weak to medium. The increasing buyer demand online is reducing the bargaining power of buyers. Competition from substitutes: very strong. There are many substitutes for eBay’s online services such as online retailers like amazon.com. The bargaining power of suppliers: weak. The large amount of suppliers online has reduced the bargaining power of suppliers. Rivalry among Industry: medium. The Industry has grown rapidly in the past few years. 2. Driving forces: 1). the global growing population of Internet users. 2) The “Business-to-business e-commerce would be reached $12.4 trillion in 2012” according to the case. 3) The growth rate in online retail sales would continue to low. Company like eBay should expand in more markets to create more competitive advantages. 3. Key success factors: 1). the ability to “generate traffic” to the site in form of both new and returning customers. 2) Partnered with online shopping search engines. 3) Terrific advertising. 4) Good customer services. 4. The company’s position on the map is relatively good. Amazon.com would be the company’s closest rival. 5. SWOT analysis Strengths: good brand image for the online auction industry, good customer services, more than 2 billion goods for sale, industry dominator, large amount of registered...
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...the Online Auction Industry Prepared for: Dr. Patrick Kreiser Prepared By: Katelynn Coghlan Tommy Pauley Patrick Scott October 26, 2005 There is no doubt that eBay holds the power in the online auction industry. An analysis of the key factors of their company was compiled to find out what the eBay strategy is, and how they are doing financially. Also an internal analysis of their strengths and weaknesses and an external analysis of their opportunities and threats have been provided. Finally, a strength assessment of the main competitors in the online auction industry has been determined to see how strong each competitor is. From its beginning in a San Francisco living room, eBay has grown to be in a league by itself. Analysis of eBay’s Strategy and Business Model Before eBay could begin to compete in the online auction industry a strategy and business model needed to be developed (Appendix A). eBay had to define the businesses they would be competing in and how they would compete in those specific businesses. They also needed to define how they would be a successful service to their customers. Corporate level strategy eBay’s corporate level strategy was to become a diversified business. They wanted to diversify not only the products they offered but also their customer base and global reach. By using the eBay service you can find virtually anything you are looking for. Business Level Strategy eBay competes in the online auction...
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...characteristics of digital media and the internet together with strategic decisions taken by its management team have supported ebay's continued growth ?????? Introduction eBay is an online auction and shopping website where people and businesses buy and sell goods and services worldwide. It is managed by eBay Inc., an American Internet company. Millions of people are brought together by eBay everyday on a local, national and international basis using an array of websites that focus on commerce, payments and communications. From eBay’s origin as a home business founded by Omidyar, the company has become the world's leading auction market and one of a handful of major dotcom companies to actually turn a profit. The best thing about eBay's vision is that it has eliminated many of the inefficiencies of traditional person-to-person commerce. It provides a place where buyers and sellers can conveniently meet, exchange information about goods and prices, and transact sales at minimum costs. Digital Media and Internet: Internet is the key to success of online auction sites such as eBay. eBay introduced several crucial innovations for the internet. One was the model of online auctions bringing together buyers and sellers to establish prices for goods and services that had never been marketed before. The online auction model developed by eBay...
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...faced several significant challenges, including much slower growth in eBay's core online auction business, what to do to make the recent acquisition of Skype profitable, declining numbers of auction customers (chiefly due to increasing competition from Amazon's then new and popular auction site), and weaknesses in key economies across the globe. Competitive advantage is important role in developing sustain strategies. Using porter’s five forces, this paper analyses the five factors which affect eBay strategies. These factors are major in helping the company to identify the key issues and ways of coping with complexity and change. To determine how profitable and the position of eBay in the current market, a strategic group map, weighted competitive strength assessment and financial ratios analysis were conducted. The three analyses reveal that the company is still in good standing even though there is immerse competition which results in profit margin declines. Finally this analysis looks into problems that top management of eBay is facing. With acquisition of other companies that support the company’s core business and adjusting the current strategy to encompass the company’s globalization efforts in good time the company will have good returns. What does a five-force analysis reveal about the nature and strength of the various competitive pressures eBay faces? Are the competitive pressures facing eBay and other online auction companies conducive to earning good profits? Why...
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...ebay – the world’s largest e-business eBay is definitely the world’s largest e-business so far. As the pioneer of e-commerce, eBay is “sustained by trust, and inspired by opportunity (Chaffey, Dave).” In this case study, I am trying to figure out that how the characteristics of the digital media with strategic decisions taken by its management team have supported eBay, the world’s largest e-business, growth. Analyzing the growth of eBay can definitely help me impress the acknowledge of e-Commerce. Case Study Facts eBay is an online auction and shopping website where people and businesses buy and sell goods and services world wide. eBay’s mission statement is, “pioneer new communities around the world built on commerce, sustained by trust, and inspired by opportunity (Chaffey, Dave).” As the world’s largest e-business, eBay has various to avoid the risk of fraud, such as PayPal and “Trust and Safety Programs”. The cost of access the largest online marketplace in the world is extremely low. “The vast majority of eBay’s revenue is for the listing and commission on completed sales. For PayPal purchases an additional commission fee is charged.” eBay thinks highly of the interaction between buyers and sellers. eBay released a social media called Neighborhoods in which buyers and sellers can discuss brands and products they have a high involvement with. eBay announced the Detailed Seller Ratings (DSRs) in 2008. It significantly increases the conversion rate by increasing positive...
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...have gone on a mission to expand into the Asian markets? There a lot of things to consider when trying to succeed outside of our country. E-bay was not prepared for the Asian market. More research should have been done prior to trying to expand in Asian marketing. When E-bay decided to expand in the Asian market, they did not take everything into consideration. More research should have been done in order for E-bay to know how to gain the attention of the Asian marketers. An example of that would be the fact that even though E-bay’s CEO Meg Whitman had spent time in China, she was not prepared to cater to their needs. The Chinese executives had more experience in dealing with the specific needs of Chinese consumers shopping online. Another problem that E-bay didn’t expect was Internet accessibility and the inability of local networks to connect to their site outside of Asian countries. E-bay may have been alright had they just did more research prior to jumping into the market. Because E-bay was having problems with the Internet accessibilities, Chinese students opted to use local companies instead. E-bay is not the only brand image. There are more brands out there, such as Google. When you are competing with others, you want to try and beat their price just enough that you won’t shoot yourself in the foot. E-bay did not have the better deal. Because China is said to be a fast growing and frustratingly tough to crack market, E-bay chose to enter into...
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...new online market place. World wide web also broaden markets to include people and organizations that otherwise would not have known of buying or selling opportunities. Ebay has been moving into areas of service and creating global network. II. MAIN PROBLEM E-bay has become critical to their revenues and profits especially to South Korea, Germany and the United Kingdom. III. SECONDARY PROBLEM * Other online sellers and auction sites provide competition. * Taxes on online sales have been imposed in some countries. IV. OBJECTIVES * To create a product or service that is new to market. * To provide service in the easiest way. * To expand E-bay internationally and globally. V. SWOT ANALYSIS STRENGHTS | WEAKNESSES | * Continued to innovate, providing new sites and services. * E-bay purchased PayPal. * Free service * Technology became a core strength for E-bay. * E-bay offers a wide variety of features that enable members to buy and sell on the site quickly and conveniently. * Top online automobile site. | * International business in Korea, Germany and UK has been critical. * There was so much traffic on the website. * E-bay site went dark for 22 hours resulting in lost fees of $4 million. | OPPORTUNITIES | THREATS | * E-bay changed their strategy in China by entering into a joint venture with a local company. | * Other online sellers and auction sites provide competition. * Taxes on online sales...
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...E-commerce 2014 business. technology. society. tenth edition Kenneth C. Laudon Carol Guercio Traver Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Chapter 11 Social Networks, Auctions, and Portals Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 1 Social Networks and Online Communities Internet began as communications medium for scientists Early communities were bulletin boards, newsgroups (e.g., the Well) Today social networks, photo/video sharing, blogs have created new era of online socializing Social networks now one of most common Internet activities Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 11-3 What Is an Online Social Network? Working definition Group of people Shared social interaction Common ties Sharing an area for period of time Portals and social networks: Moving closer together Community sites adding portal-like services Searching, news, e-commerce services Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall Slide 11-4 2 The Growth of Social Networks and Online Communities Top 10 social networks account for more than 90% social networking activity Facebook users: More than 50% are 35+ Unique audience size: Top four U.S. social networks: 270 million Top four portal/search engines: 680 million Annual advertising revenue U.S. social network sites: $4.45 billion Top four portal/search engines: $22 billion Copyright © 2014 Pearson Education, Inc. Publishing as Prentice...
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...E- Commerce group assignmen Group 8 eBay- Fine- Tune its Strategy E-commerce assignment group: eBay ABSTRACT 1 EBay is one of the world leading companies, specializing in online retailing market, which has been really famous for its amazing business model and selling strategies at the point of several decades ago. It was once to be deemed as the monopolist in the online auction market business with so many successes. However, as the competition is becoming more and more intense, along with many new effective business strategies coming to the online retailing sector, the companies had committed in some mistakes as well as faced with a number of difficulties. It should and must change in order to keep up with the market speech. This paper is not only to give an overview of eBay’s company but to analyze deeply its current situations, of which providing the 8C’s, 5 forces and other relevant model analysis. In addition, the key reasons for eBay’s changes as well as key factors for its success had been identified. The recommendations for Vietnamese enterprises were also included. High Quality Class No. 2 Business Administration – Group 8 E-commerce assignment group: eBay TABLE OF CONTENT ABSTRACT ------------------------------------------------------------------------------------------------------------ 1 TABLE OF CONTENT ---------------------------------------------------------------------------------------------- 1 I. OVERVIEW OF EBAY----------------...
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...antiques and art, books, business & industrial, cars & other vehicles, clothing & accessories, coins, collectibles, crafts, dolls & bears, electronics & computers, home furnishings, jewelry & watches, movies & DVDs, music, musical instruments, pottery & glass, real estate, sporting goods & memorabilia, stamps, tickets, toys & hobbies and travel. Members from all over the world buy and sell on eBay. Currently, eBay has local sites that serve Australia, Austria, Belgium, Canada, France, Germany, Ireland, Italy, Korea, the Netherlands, New Zealand, Singapore, Spain, Sweden, Switzerland, Taiwan and the United Kingdom. In addition, eBay has a presence in Latin America and China through its investments in MercadoLibre.com and EachNet, respectively. eBay offers a wide variety of features and services that enable members to buy and sell on the site quickly and conveniently. Buyers have the option to purchase items in auction-style format or items can be purchased at fixed price through a feature called Buy-It-Now. In addition, items at fixed price are also available Half.com, an eBay company. eBay is dedicated to its community of members, and has numerous services which enhance the trading experience. Our marketplace services include: online payments by PayPal; a wide array of Buyer and Seller tools; and the Developers Program for community members who would like to develop their own solutions. Environmental Policy eBay is committed to conducting its business in a way that minimizes the...
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...Strategic Position is how well an organization matches its internal resources and capabilities to its external environment. A SWOT analysis is helpful to summarise the key issues arising from an analysis of the business environment and the capabilities of an organization to gain an overall picture of its strategic position. This can also be useful as a basis to generate strategic options and to assess future courses of action. A SWOT is company specific as opposed to the Porters five forces which is industry specific. The aim is to identify the extent to which strengths and weaknesses are relevant to, and are capable of dealing with changes that take place in the business environment. Internal Resources and Capabilities Financial Resources Ebay is a Public Listed Company with corporate responsibilities to its shareholders. In 2006, it earned a gross profit of $4.7 billion and its total assets were $13.5 billion. This financial strength gives it opportunities to invest in activities to increase its financial strength through growth into related and other industries, global markets and also to investing in technology to increase customer satisfaction. It also allows it to invest in marketing to attract further customers and to invest in fraud prevention to protect its valuable intangible asset, its brand name. The Value Chain If organizations are to achieve competitive advantage by delivering value to customers, managers need to understand which activities their...
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...eBay Inc. is an American multinational internet consumer-to-consumer corporation, headquartered in San Jose, California. It was founded in 1995, and became a notable success story of the dot-com bubble; it is now a multi-billion dollar business with operations localized in over thirty countries. The company manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. Case: The Globalization of eBay International Business the Globalization of eBay Case study I. Case Background eBay Inc. is an American multinational internet consumer-to-consumer corporation, headquartered in San Jose, California. It was founded in 1995, and became a notable success story of the dot-com bubble; it is now a multi-billion dollar business with operations localized in over thirty countries. The company manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. (Wikipedia) Operations eBay created an efficient distribution system that demanded virtually little supervision. Sellers paid eBay for the opportunity to design, set up, monitor, and supervise their particular auctions while buyers used eBay's software to search for products and place bids. After the auction clock ran out, the seller contacted the winning bidder to negotiate payment and shipping terms. For this matchmaking service, eBay charges between...
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...e-commerce website, most notably eBay. eBay.com has become the world’s largest online marketplace, that enable individuals to buy and sell practically anything including books, antiques, collectibles, electronics, home furnishing, sporting goods and memorabilia, and move and DVDs to nearly every country on earth (Trites &Bortiz, 2003). It operates on a global scale, with its headquarter located in San Jose, California. It was founded in September 1995 by Pierre Omidyar as one of his hobbies, yet to realize he developed a revolutionary new ecommerce model (Trites &Bortiz, 2003). eBay did not follow in the same stepping stones as other ecommerce did at the time. At the time of its establishment, eBay acted as an intermediary between buyers and sellers, unlike others who focused on selling goods and services (Trites &Bortiz, 2003). Since it first started, eBay has achieved numerous milestones for its time duration in the business. It has an established community consisting of tens of millions of registered from every corner of the earth (eBay, 2013). In addition, eBay is globalized to operate localized sites in over 20 countries, including Canada, Australia, Germany, Japan, the United Kingdom, and India (eBay, 2013). eBay was successful during its establishment due to the fact it was the ‘right idea at the right time’, combining the business of auctioning through the means of the internet. Due to its business structure as an intermediary between buyers and sellers, it did not have to...
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