...eBay Goes on a Shopping Spree Introduction The author provides a case analysis of the eBay shopping spree assigned reading in the E-commerce: Business, Technology and Society textbook. The purpose of the research is to explain whether or not making so many acquisitions is a risky proposition. Additionally, the author will argue why eBay can successfully compete with its top three competitors. Finally, the researcher will explain why eBay is the perfect model for the integration of all the aspects of e-commerce. Questions Question #1: Explain whether or not you think making so many acquisitions is a risky proposition and why? The acquisitions are risky but support the eBay overall open source commerce platform called X.commerce. Therefore, the acquisitions are warranted as a calculated risk which enables merchants to more easily integrate online and offline commerce efforts (Laudon & Traver, 2012). Specifically, the acquisitions of RedLaser and Milo allow eBay to build services to help sellers offer goods locally, both online or through a mobile device, providing them with another channel for product distribution (eBay Annual Report, 2012). RedLaser allows consumers to scan barcodes in order to find the goods they are looking for in a variety of locations, both online and offline, while Milo enables local inventory to be viewed online or on a mobile device. The eBay acquisition strategy shows a strong commitment of connecting local retailers with shoppers. The...
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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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...Q1 | Why has eBay become successful and diverse online market place? a) What is eBay? Who is the founder?b) Success story of this company in diverse online marketplace i. How and why it become successful? ii. How eBay position itself in the E-commerce marketplace? | 9-11 | Q2 | Visit the eBay website (http://www.ebay.com) to help you answer, and check out their many trading categories, specialty sites, international sites, and other features. [You can provide the screen-shot of the web pages to show every of the feature] a) What is trading category? What they have on this in their website? b) What is specialty site? What they have on this in their website? c) What is international site? What they have on this in their website? d) What other features do they have in their website? Analyze each feature in term of its purpose and business values e) Is there Customer Relationship Management technology in their website? | 12-24 | Q3 | Why do you think eBay has become the largest online seller of certain other products, like computers and photographic equipment? a) Based on the eight initiatives/ competitive advantages that you have learned in Chapter 2 | 25-26 | Q4 | Is eBay’s move from pure consumer-to-consumer auction market place to inviting large and small businesses to sell to consumers and other businesses, sometimes at fixed process, a good long-term strategy? a) What is pure consumer-to-consumer auction market place for eBay? b) What is...
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...Note: The company I cofounded, Hunch, was acquired by eBay in November 2011. I am now an eBay employee. But all the opinions expressed below are my own, and were developed prior to the Hunch acquisition, through my own research on e-commerce. Amazon and eBay are the two largest e-commerce companies. As of this writing, Amazon has a market cap of about $87B, trading at a trailing twelve-month P/E of about 139. eBay has a market cap of about $42B, trading at a trailing P/E of about 13. Each company competes with many other companies in many different areas. For example, Amazon competes with Apple on tablets (Kindle vs iPad) and digital media (Amazon’s media store vs iTunes). Ebay’s Paypal unit competes with multiple payment companies, and its marketplaces division competes with other “peer-to-peer” e-commerce sites like Craigslist. But given the potential size of the e-commerce market (not to mention the online-to-offline commerce market), Amazon and eBay’s main competitors are each other. And to understand their large strategic moves (e.g. large acquisitions like GSI and Zappos), it is important to understand their fundamentally opposing strategic outlooks: eBay wants commerce to be more decentralized (around its GSI/Magento partners and eBay marketplaces sellers) and Amazon wants it to be more centralized (around itself). First, some background. During the dot-com boom, many largest offline brands debated how to best move their businesses online. Some tried to build their...
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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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...Content: Introduction: Market size and trends of the two markets P2 Comprehensive analysis The ALIBABA and the ebey market pattern P4 The principles involved in the introduction of the new product P10 Characteristics of those consumers who might be adopters P12 Hidden psychological motivations that hindered/contribute to success P14 Role of peer pressure or other elements P16 Conclusion: Recommendation/ Opinion P18 Reference P19 Introduction Market size and trends of the two markets. Alibaba since March 10, 1999 after the establishment soon became China's largest Internet companies and the world's second largest Internet companies, Alibaba is the world's leading small business e-commerce company, Alibaba Group's flagship business. Alibaba market through its three trading around the world to millions of buyers and suppliers engaged in online business.Three online marketplaces: focuses on serving importers and exporters in the international market, domestic trade in China market, and, through an associated company, to promote Japanese exports and the domestic market in Japan.In addition, Alibaba is also on the international market with a global wholesale trading platform for smaller, you need small quantities of goods to buyers fast delivery service.All transactions with the formation of a market more than 240 countries and regions from over 61 million registered users of the online community.In order to be transformed into...
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...Strategic Management: ‘Making eBay Work’ Case Study Abstract The following report will analyse the methods and strategies eBay have used in order to gain competitive advantage over its rivals to become the largest auction site in operation. Introduction eBay is a worldwide e-commerce business that has well and truly reaped the rewards of the internet revolution. The company operates on a global level, boasting several acquisitions of competitors to boost its market share, housing underneath the umbrella that is eBay are numerous divisions’ specialised products and services such as motor vehicles. (eBay, 2006) The following report will use two analysis tools, a SWOT analysis and Porter’s Five Forces analysis (1979) to study eBay which will be located in Appendix 1, specifically the analysis of eBay’s internal capabilities and external environment surrounding the e-commerce organisation. The report will use these analysis tools to assess the strategies implemented by eBay to remain both sustainable and profitable in the e-commerce industry, the main strategy to be discussed in depth is the eBay and its use of horizontal integration. The report will discuss this under the following headings: * External Analysis of eBay * Internal Analysis of eBay * Strategies Implemented * Analysis of Implemented Strategies External Analysis of eBay The external analysis will look study the pressures outside of the company that cause eBay to react in a positive or...
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...are the important contributing factors that drive businesses and organizations to success. Besides that, many businesses today are using Internet technologies to Web-enable their business processes and create e-business applications. One of the influential e-business application information systems that support every real world business system is the E-payment system. The payment system is a functioning network that links bank accounts and provides the functionality for monetary interchange which governed by laws, rules and regulations.1 Electronic payment systems (EPSs) are also known as e-commerce payment systems, involving an electronic payment transactions for buying and selling goods or services via internet.1 In other words, the payment process in the e-commerce world can be described as, in most case the customer does not actually see the concrete product at the time of transaction, and the method of payment is performed electronically. Moreover, customers are able to pay for the goods and services online by using integrated hardware and software systems via EPSs. As information technology getting in advance each day, the range of devices and processes to transact electronically continues to grow. In fact, it is predicted that everyone will use the form of E Commerce in near future even though many businesses and consumers are still...
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...Amid the Gloom, an E-Commerce War - The New York Times Page 1 of 10 This copy is for your personal, noncommercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers, please click here or use the "Reprints" tool that appears next to any article. Visit www.nytreprints.com for samples and additional information. Order a reprint of this article now. » October 11, 2008 Amid the Gloom, an E-Commerce War By BRAD STONE WHEN the e-commerce giant eBay emerged from the last recession seven years ago with an aura of invincibility, its chief executive, Meg Whitman, boasted that “eBay is to some extent recession-proof.” As the online auctioneer’s revenues and stock price kept climbing, one of its primary rivals, Amazon.com, just limped along. How times have changed. Ms. Whitman, now co-chair of Senator John McCain’s presidential campaign, retired from eBay earlier this year as the company struggled with stagnation. Amazon, meanwhile, has emerged as one of the most vibrant and reliable retailers in the country. And in an unmistakable sign that Internet companies are indeed exposed to the gathering economic storm stemming from the credit crisis, Ms. Whitman’s successor, John J. Donahoe, laid off 10 percent of eBay’s 16,000 employees last Monday. Mr. Donahoe noted that eBay was already feeling the effects of the downturn. “This looks like it is going to be a more typical economic cycle that impacts consumer spending,” he...
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...E-COMMERCE ------------------------------------------------- TYPES OF E-COMMERCE The aim of this report is to search for an example of a website that falls under each of the four main types of e-commerce found in unit 1 of the BIU syllabus based module and to describe the website and to explain why it falls under that type of e-commerce. To begin with, electronic commerce is the systematic process of buying and selling of goods and services using an electronic mode primarily the internet. There are different commerce transactions that happen in our daily life, and those commerce transactions have been categorized in different types. As per unit 1 of the BIU syllabus based module, there are four main types of e-commerce (Mbotwa 2014). These are Business-to-Business e-Commerce, Business-to-Consumer e-Commerce, Consumer-to-Business e-Commerce and Consumer-to-Consumer e-commerce. Firstly, Business-to-Business e-Commerce. This refers to electronic commerce transactions between two businesses where both the buyer and seller are business owners. This could be between a manufacture and a wholesaler or a wholesaler and a retailer (Mbotwa 2014). It can be treated in other way like, wholesalers supplying goods to retailers or a distributor in one country can ask for goods in bulk from the exporter in other company through the internet. In this form both the buyer and seller are business entities. An example of B2B website is Hp.com. On Hp.com website, a wholesaler...
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...What eBay has Done For The E-commerce Business? CITN120-Introduction to Networking If you’re a consumer looking to buy or sell an item or maybe catch a fantastic bargain, you have probably heard of eBay. The company’s founder Pierre Omidyar started his journey on September 3, 1995, as a simple home page and a broken laser pointer and created something that had never been done before. Pierre simply intended the listing on his web page of a broken laser pointer to be a test more than a serious offer to sell at auction. He was shocked when he received a response, “I’m a collector of broken laser pointers,” and sold the item for $14.83. When Pierre received this answer back he knew that he had created something big and transitioned from one of commerce, buying and selling things, to one of e-commerce, connecting people around the world together over the internet. In 1996 Pierre and his hand picked business team set out with their vision, which was to create the first online auction website for consumers to buy and sell their items. Since the start up, eBay has become the market leader and pioneer in the on-line auction industry and its brand name has become synonymous with e-commerce. eBay doesn’t actually sell any goods itself, it is simply a meeting place where the merchandise is sold and delivered by third party sellers that are not employed in any way by eBay. This unique e-commerce business gives sellers a place to reach buyers, and gives buyers access to the world’s...
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...online by the end of the year, transaction from C2C e-commerce had reached US $2.9 billion. In 2003, Alibaba.com, one of China's biggest business-to-business e-commerce firms, invested 100 million yuan (US $12 million) into the consumer-targeted e-commerce web company Taobao.com By the time Taobao entered the C2C segment, eBay’s global revenue were US$ 2,165 million and the company had about 5,700 employees. In addition to its dominant position in the U.S., eBay had established a local presence in 19 countries. Since its founding in 2003, Taobao has created an e-commerce ecosystem consisting of 80 million registered users and over 1 million sellers, as well as third-party service providers in payment, logistics. With 200 million items in selection, Taobao gives Chinese consumers the most comprehensive product choice on the Internet Taobao is the most trusted online commerce platform for Chinese consumers. 33% of China's Internet users have shopped online and 76% of these users have purchased items on Taobao. In 2002, eBay paid US$ 150 million to buy a two-thirds stake in Eachnet Inc to enter China. In 2003, eBay paid US$ 30 million for one-third of Eachnet's shares. At the time of eBay’s investment, EachNet commanded an 80% market share with revenues of RMB 12 million. Founded in 1999 by Tan Haiyin and Shao Yibo, both Harvard Business School MBA, EachNet was China’s first online auction website. After the acquisition by eBay, Shao Yibo remained in office as the chairman. Trust...
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...abroad. Taobao Marketplace (formerly "Taobao") was launched in May 2003 by Alibaba after eBay acquired Eachnet, China’s online auction leader at the time, for USD 180 million and became a major player in the Chinese consumer e-commerce market. To counter eBay’s expansion, Taobao offered free listings to sellers and introduced website features designed to act in local consumers' best interests, such as instant messaging for facilitating buyer-seller communication and an escrow-based payment tool, Alipay. As a result, Taobao became mainland China's undisputed market leader within two years. Its market share surged from 8% to 59% between 2003 and 2005, while eBay China plunged from 79% to 36%. EBay shut down its China site in 2006. Asees the attractiveness of the e-commerce insdustry. In many ways, China seems suited for the rapid development of e-commerce. Driving forces that make e-commerce attractive includes the explosion of Internet use and the government's interest in developing e-commerce. Along with growth in Internet users has come increased e-commerce revenues. There were over 200 e-commerce web sites in China, employing over 5000 people. E-commerce revenues on the Chinese mainland grew from about US$8 million to US$24.2 million in 1999. It was estimated revenues could grew to US$96.7 million in 2000, and US$1.2 billion by the end of 2002. In 2000, China holded the most e-commerce potential among emerging markets, but still suffers from a lack of reliable transportation...
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...DEC 2011 Why does E-Bay have problems in its Asian Markets? The situation in Asia is somewhat ironic given that in the U.S. Yahoo and eBay have forged An alliance to protect their dominance in the $12.5 billion online advertising market against Google. But in Asia, the eBay-Yahoo rivalry is ferocious (BusinessWeek.com, 5/26/06, Tech Titans Take Sides). Yes, Yahoo is a big reason that E-bay globalization in the Asian market isn’t successful. Though yahoo has some responsibility in EBAY unsuccessful Asian Market, EBay has lack the ability to conform its business model to the Asian market. EBay inability to tailor its product to the Asian Market has also been a major reason for their failure in the Asian Market. In major markets like Japan, Korea and China, Yahoo subsidiary have outperformed EBay. EBay has a simple business model of drawing revenue from passing information between seller and buyer, which require no necessity to have inventory or ship goods. This business model was embraced by foreign markets including UK, France, Germany and surely became a leader in e-commerce in the US. This success didn’t translate to the Asian Market. The reason is due to neglect of the four P’s concept, adoption, standardization, and entry time and entry market. EBay begin its entry into the Asian market in Japan, but missed their ideal time to enter the market. Yahoo had entered the Japan market six months prior to EBay. This allowed yahoo ...
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.............................................................................................. 8 Introduction: 21st Century Marketplace .................................................................................................................. 9 Research Framework ................................................................................................................................................... 17 Case Studies.................................................................................................................................................................... 25 Consumer Reports: Car Buying Guide ............................................................................................................. 25 eBay .................................................................................................................................................................... 65 FDA Nutrition Fact Panels...
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