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Ebay Case Study: Assess how the characteristics of the digital media and the Internet together with strategic decisions taken by its management have supported eBay's continued growth.

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ContentsA Brief History of the Growth of eBay3Characteristics of the digital media and the Internet4Strategies for growth5Partnerships and Acquisitions5Payment Options7The Localised Marketplace7Increased Categories8Reduction in fees8Conclusion8Appendices9Appendix A9Appendix B9Bibliography10 Assess how the characteristics of the digital media and the Internet together with strategic decisions taken by its management have supported eBay's continued growth.

A Brief History of the Growth of eBayOne of the world's most famous dot-coms was founded as AuctionWeb in San Jose, California, on September 3, 1995, by French-born Iranian computer programmer Pierre Omidyar. This was 1995 when the World Wide Web or 'information superhighway' as it was …show more content…

Users with an access to an internet connection, whether on a computer or mobile phone, can visit eBay around round the clock to compare prices and make purchases, without having to leave their homes or offices from around the world. By being independent of a location, eBay has been able to reach into global markets and increase their consumer base drastically.

For sellers, e-commerce offers a way to cut costs and expand their markets. In eBay, sellers do not need to build, staff, or maintain a physical store or print and distribute mail order catalogues. While there are fees involved in setting up an 'eBay Store' and postage costs involved in distributing products, these costs are much less significant compared to setting up a physical store. Since most of the transactions are C2C, there is a lot more interactivity involved in which the consumer initiates contact and has a lot more control.

Another main advantage of the Internet is speed. Electronic communications have allowed messages to cross the world almost instantaneously, thus eliminating the need to wait for weeks for a catalogue or message.

Strategies for growthWhile the strategies eBay have used for growth are numerous, this report has divided them into four main categories, with the aim of these strategies to increase:1.Acquisition: the number of newly registered users2.Activation: the number of registered users that become active buyers and sellers3.Activity:

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