Advantages And Disadvantages Of Ebay

Ebay, as a company itself, fits more in the category of an oligopoly, which is actually pretty common in any market. Other alternative websites include Yahoo!, Amazon, and Quibids, but there are only a small number of them, certainly not hundreds as in monopolistic competition. Also, eBay is interdependent on the few other auction website companies, competing with the fees they charge, as well as quality of customer support, and buyer/seller reliability. Another characteristic of eBay that coincides with it being considered an oligopoly is the fact that it has numerous entry barriers. It’s such a large company with many restrictions, and it would be hard for an up and coming substitute auction website to break into the market and compete with eBay or the other top companies in the industry. (6)

EBay has paved the wave in this industry and being in a billion dollar industry making things happen to benefit consumers in many ways.[5]

    Assessment of eBay´s choice of market entry strategy for China, listing both the advantages and disadvantages of its acquisition strategy Assessment of the potential benefits and risks of eBay´ s joint venture with Tom Online Assessment of both companies: eBay and Tom Online, decisions on their respective

Amazon and Ebay are two well-known brands of online shopping sites. They have evolved and grown from small firms to the giants of e-commerce today. In this essay, a comparison would be made between the two firms.

eBay has a choice preferred standpoint. Regularly contributed similar to the world 's greatest store, and have a bigger number of things available to be purchased than anyplace else. However its maintainability props on patch up unstable ground as omnichannel world envision, for arranging purposes, that everything is available to be purchased in each commercial center, each methods, and each channel. Partaking connected shoppers may never get to that world, yet it 's a helpful arranging presumption.

Ebay is primarily service providers who connect the sellers and buyers by providing platform to sell and buy any goods.

Firms such as Amazon.com and eBay were some of the first on the market to move toward online stores, and then followed by Wal-Mart and Target to maintain a competitive market presence. This addition of stores and online shopping options created an attraction for consumers and helped make them more attractive to current and potential customers.

Read the case carefully and answer the following questions: 1.Till 2005, eBay EachNet was the leader in the Chinese e-commerce market, controlling more than half of it. But eBay EachNet soon lost its market leadership position to Taobao.com (Taobao). In this context, analyze the reasons that can be attributed to Taobao’s edge over eBay. 2.a. To enable people to trade with each other, Pierre Omidyar created a marketplace in September 1995 which was later called eBay. By mid 1997, eBay received one million page hits per

Best Buy also offers the in home delivery and installation of video and major appliances. Because of this agreement with Microsoft, Best Buy’s eCommerce is an excellent source for customers to purchase anything in the store on line. Netflix a major source for renting DVD’s online has teamed up with Best Buy to enable the customer to buy the DVD movie of choice right from the Best Buy website. BestBuy.com also offers the consumer the option to order any product from the store directly to their door step in the matter of a day.

The industry of BestBuy is Retail – Consumer Electronics. It occupied nearly all market share on traditional consumer electronics and appliances. While Amazon is retail tycoon, which sells dozens of product categories on its websites. Amazon also manufactures and sells electronic devices, like Kindle e-readers, Fire Tablets, Fire TVs and Echo.

Best Buy has been successful with their web presence; they have found another outlet for customers to purchase products from Best Buy.

The company eBay Inc. is an American multinational Internet consumer-to-consumer corporation. Founded in 1995 by Pierre Omidyar in San Jose, California, it is now a multi-billion dollar business with operations localized in over thirty countries including China and India. It’s main enterprise is eBay.com, an online auction and shopping website that allows people and businesses to buy and sell a broad variety of goods and services internationally. Millions of collectibles, décor, appliances, computers, furnishings, equipment, domain names, vehicles, services, intangibles and other miscellaneous items are listed, bought, or sold daily on eBay. Anything can be auctioned on the site as long as it is not illegal and does not violate the eBay’s Prohibited and Restricted Items policy.

The degree of rivalry among established companies within eBay industry is very high. This high degree of rivalry is very common in discount retail industry due to the high concentration on being the price leader. EBay competition is very broad and varies with each of its different products. eBay competes closely with many well know broad-based companies such as traditional department and general merchandise stores, as well as a large variety of online retailers. Due to this complex competitive industry, eBay must concentrate on many competitive factors such as: ability to attract buyers, volume of transactions and selection of goods, customer service, system reliability, brand recognition, and many others to keep their edge.

Thus far EBay has attempted joint ventures and mergers to enter the Asian market share and has met negative results. This has had a negative effect on their overall performance to expense ratio in their stock valuation from 2000 thru the present time but has not deterred management from continuing to compete for a market share in Asia. An ongoing joint venture with Yahoo keeps EBay with a foot in the door of the foreign market and continues the strategic alliance against Google. EBay has expanded to Southeast Asia to see what they can obtain in Singapore, Malaysia and through operations in the Philippines. Currently they are doing promotional sites in Thailand and Vietnam to gauge future profits in those nations as

The fact that eBay does have some successful competition means that its strategic capability has become less unique. There is a hint in their competitor profile that innovation and perhaps adaptability to different cultures as they innovate is not core to eBay and something which has been developed more successfully by others working within their own national culture. Indeed, eBay rules in its own territory of North America and in Europe. The search capability of eBay also means that niche players do not really make sense, whereas the consumer trust that comes from being a big player is worth everything when trading on-line, as is the notion that whatever you want it will be on eBay because of its size. Thus, the so-called network effects of eBay (the bigger the company, the more successful it will be) and its first mover advantage that has led to this level are key to its success.