eBay Case Study
University of Mary Hardin- Baylor
Abstract
1. Analyze the marketing environment and the forces shaping eBay’s business over the years. What conclusions can you draw?
The market eBay takes place in is primarily the Internet market. Around 1995 the Internet market was just beginning. “there will be more than 500 million users by 2003 and a rapid increase in e- commerce turnover, rising from US$500 billion worldwide in 2001 to more than US$3 trillion in 2004” (Fichter, 2003) EBay was a pioneer in Internet market until competitors such as Amazon and Wal-Mart began to sell products online as well. “Online marketing is now the fastest-growing form of marketing” (Armstrong, 2013). The difference between eBay and its
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This created an environment where consumers were receiving what they desired and also at higher volume creating profits. “ Donahoe- “We have to create a marketplace where we’re helping our sellers give our buyers what they want”” (Armstrong, 2013). Giving the customers what they desire created profit and growth for eBay.
3. Do you agree or disagree with CEO Donahoe that eBay’s turnaround strategy is the best way to go?
Yes I agree with Donahoe’s decision on his turnaround strategy. Change can be difficult but adapting and innovation is the key to success. “ The “power of mass procurement” can be utilized to ensure that only those systems that meet the defined criteria for sustainability are considered for purchase” (Fichter, 2003). Change is something all companies have to go through and the ones that make the transitions the most smooth are the ones that excel.” Given that expert projections suggest that mobile commerce will top $119 billion by 2015, being on top of this trend s a great place to be” (Armstrong, 2013). This is exactly what eBay did, they found a new leader and he lead them through new changes and it is paying off. Yes at first there was “growing pains” but their profits are increasing in areas do to their innovation and changes they had to make.” We have gone from turnaround to offensive” (Armstrong, 2013)
4. Based on eBay’s current developments with PayPal and mobile apps, what
After emerging from bankruptcy in 2005, Eddie Bauer had to take several strategic steps to establish an effective direction of the company and operate more successfully. Management’s plan of reorganization identified six key strategic initiatives that can be classified into two main groups. The first component of their strategy is to improve profitability by both increasing demand through effective marketing campaigns (brand revitalization, resizing of stores, and improving customer experience) and cutting costs (store rationalization, increasing direct sales, and optimizing productivity). The second component of their strategy is
3. How does the current market condition affect eBay’s decision? Should eBay go ahead with the offering?
eBay’s most effective barriers are its large network and credible reputation. It is rather difficult for a new entrant to build a new network starting with no users. (We can verify this by how new air ticketing companies grow.) The only way to start a network from a reasonable size is to derive an online auction market from an existing
If the centricity concept is being blamed for not meeting earnings and the decline in Best Buy’s stock price and market capitalization, the question becomes was there a need for this change to the company’s strategy, was the strategy poorly implemented, was there a delayed market response to the change, or was the launch an overly aggressive action of a newly appointed CEO? The Best Buy leadership team first needed to evaluate whether there truly was a need for a (drastic) change and if so, was centricity the appropriate response to the market.
Macy’s department store, like many brick and mortar stores, is experience a decline in sales and is forced to look at ways to turn the tables. In Macy’s anticipation of the online shopping trend as wells as the trend for customer loyalty programs, Macy’s is planning (expecting trends and deciding the best plan to achieve goals) a course of action that they hope will turn the decline around. Part of Macy’s plan is to make a change in management. By hiring E-Bay’s vice president, Hale Lawton, into the role of CEO of Bloomindales, Macy’s hope is bringing Lawton’s expertise in e-commerce to the company. With Lawton’s knowledge and experience in managing (planning, organizing, and leading) e-commerce, Macy’s goal is to the move business to
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]
Our things are a representation of who we are, and our willingness to give up certain things easier than others has a lot to do with who we are. Our personal effects help tell a story from the past just as easily as any old photo taken from a long forgotten family fishing trip, or vacation. The online website eBay is a place where people can sell items from their past that they no longer want or need. Some users sell treasured belonging on eBay in order to make a few extra bucks because they are rare or unique, and others sell to make room for new things with new stories. Whatever the reason for selling off a precious belonging is; an thought out colorful description can make all the difference to a potential buyer. Many descriptions only focus on the characteristics of
A major challenge that eBay has been facing in the last few years is the structural challenges related to credit card interchange and the ability to link such systems with other mobile operating platforms. Another key issue that has emerged as a major weakness for eBay has been the reality that there is no further growth strategy for the entity. Perhaps this is due to the fact that eBay currently uses an online platform that may not provide further growth to the systems currently being utilized. eBay has also had a challenge with the current business model, which despite its brilliance has been argued to present certain logistical challenges for the company’s operation.
eBay Inc. is am American multinational corporation and e-commerce company, providing consumer-to consumer sales services via the internet. Its head quarter is located in San Jose, California. The founder of eBay is Pierre Omidyar (1995). It is a multibillion dollar business with operations localized in over thirty countries. The company manages eBay.com, an online auction and shopping website in which people and business buy and sell a broad variety of goods and services worldwide. eBay connects a diverse and passionate community of individual buyers and sellers, as well as small businesses. eBay is the world’s largest online marketplace with over 120 million active users worldwide. Their collective impact
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
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.
Use this valuable guide as a MONEY MAKING TOOL. Read it from start to finish over and over. The amount of information and wholesale sources you will find seems overwhelming at first, but don’t be intimidated. Take your time and be patient. It is going to take you several days to check out the sites because there are just so many items to choose from.
During Whitman’s tenure, her decision making skills and her responsiveness to the task environment is a topic for discussion, ten years after her departure. On her first day at eBay, the website crashed for eight hours, halting all trading. Her quick decision making prompted the addition of backup software and an increase of computer servers to support the network traffic eBay was experiencing due to the high volumes of trading. The actions are standard reactions to the situation; it was her ability to manage the crisis on her first day that led her to successfully lead the senior managers to buy in that eBay’s number one job was to keep the site up. The website continued to experience power outages that lasted from 10-15 minutes during her first year which prompted her to develop a contingency plan. The plan consisted of her hiring Microsystems Inc. to manage eBay’s infrastructure while she worked on improving her internal technical environment (Holson, 1999).
Going to the beach requires a special kind of attire. Although wearing a bathing suit makes sense, some people prefer to cover up at least part of the time. This is where cute and stylish beach dresses come into play. They feature lightweight materials, short lengths, and attractive designs, and they keep the body covered just enough to make women feel comfortable without needlessly weighing them down in yards of material.