Executive Summary:
The e-commerce industry has become a major player in the global retail environment. E-Bay's large operating history has allowed the company to build a social capital of internet buyers and sellers that has now become its competitive advantage. However, intense competition in e-commerce has lead major players to lead expansion efforts in foreign markets where growing economies exist and the number of internet users is abundant. As a facilitator of online buyer-seller transactions, the only obstacle the company needs to overcome is quickly introducing its presence in new foreign markets where growth opportunities have been identified.
Industry Analysis:
The online auction industry is currently in the growth stage of
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However, their large population levels relative to the number of internet users show low internet penetration levels (See Exhibit B). Such countries are considered potential for future growth in e-commerce as their infrastructure develops with technological innovation.
Competitor Analysis:
Many of eBay's current and potential competitors will not be able to attract the number of registered users' equivalent to or beyond eBay (See Exhibit D) because they do not have longer operating histories and greater brand recognition that has been attained by eBay's network economies from its first-to-market advantage.
On the other hand, the strategic partnerships formed by eBay's competitors in foreign markets pose a serious threat in its future ability to expand in new countries and increase share in growing markets such as China. Yahoo's strategic alliance with Alibaba's TaoBao has captured 58% of the Chinese online auction market. EBay's EachNet has attained roughly 35% of that market. Amazon strategic alliances with other brick-and-click retailers will allow it to continue bringing more value to the customer in terms of convenience, selection, and availability, which in turn will continue its competitive pressure on eBay.
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Connected strengths decide eBays force of rivalry and henceforth the productivity and engaging quality of
Strategic recomendation on International Commercial Strategy for E-Bay: “Alliance, Acquisition or Abandon Strategy” (use QSPM to select strategy) 20%
Ebay is short for Echo Bay, which was the name for his consulting firm at the time is the Online Marketplace for the world. A company that deals with sale and goods and they are passionate about their service that they provide. There are millions of buyers and seller that visit eBay every day, Businesses and individuals.
Ever since the election season of 1972, presidential primaries have become “the dominant means of selecting the two major party candidates.”i[i] The primary system is one in which the eligible voters of each state do one of the following: 1) Vote for a presidential candidate to run for their party in the general election. 2) Vote for a delegate pledged to vote for a certain candidate at the party’s national convention. As intended, this process would bring the candidate selection processes out into the open and “let the people vote for the candidate of their choice.”ii[ii] On the surface, this may look very democratic (and admittedly, in some instances it was/is), but upon closer
Electronic commerce has been there for a long time now, and it is a practice that is practiced by peoples from Germany, France, and the US on a daily basis. Since its inception around 40 years ago, e-commerce has continued to grow as innovations, technologies and a lot of business reverting to the use of the e-commerce. The aspect of buying and selling of goods in the early 1960s was sluggish with the traditional way of mailing of documents being replaced with the Electronic Data Interchange (EDI), which would later pave a way to the electronic commerce. After the e-commerce, however, the practice was not more reliable as it still had many challenges (Tsolis, 2009). For instance, it was not easy for buyers to see products from the comfort of their homes and more so, the methods of accessing the information were limited.
There are many major competitors for EBay. Of the many companies that are in the same industry which are at the top of the Hoovers in depth list is Amazon, Google, Overstock.com, Walmart.com, HSN and the list goes on. The industry that these companies are in is a multibillion dollar industry. All these companies know that the consumer is their main concern. The consumer will always have a these companies doing all they can so that they stay on top.[6]
A steady increase in the popularity of online sales has caused a major push towards e-commerce in the retail industry.
A short year before Amazon was incorporated; eBay (EBAY) was established as a powerhouse internet sales service, garnering success because of the rapidly expanding dot com era. Considered to be one of Amazon 's largest competitor 's, eBay is a similar B2C sales service, offering a unique, but debatably negative, addition to the business. While it can be easily confused for a company that sells items, eBay acts more as a meeting place where sellers can sell to others; like Amazon. Also similar to Amazon, eBay advertises and sells things at a much cheaper price than the brick-and-mortar stores consumers usually purchase items at. One of eBay 's largest downfalls is the bidding service they use. It has remained
This report seeks to evaluate the major issue facing eBay with regards to its international strategy. This will be done through the analysis of eBay’s competitive environment using the Porter’s 5 forces and positioning in the industry using the BCG portfolio matrix. Following which, we will proceed to identify the sustainable competitive advantages of eBay using the resource-based view of the firm. The core competence of eBay will also be discussed. Through an overview of the above mentioned analyses, we will propose recommendations to address the problem faced by eBay.
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
The advent of Internet has allowed companies to offer their goods and services throughout the world. Not only has the Internet opened up the floodgates of International marketing, it has also brought with it many other challenges such as cultural, political, and geo-economics challenges. In order to be successful in these global markets, companies must be very diligent in handling these challenges.
During the starting years of eBay, Pierre Omidyar adopted a very simple approach into selling, which is, “there is always a market for any product that you are selling, the only challenge is in finding that right target market.”
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
Conducting business online using the internet has continued to experience significant growth over the last two decades. According to the Internet World Stats (2014) the number of worldwide internet users has grown from an estimated 16 million users in 1995 to 2.9 billion users in 2014. This world of interconnectivity has provided a way for people all around the world to communicate with one another in a real time format. The internet has removed the distance between governments, industries, businesses and individuals. This interconnectivity is helping to establish the foundation for a globalized community.
Dembosky, A. (2012). Ebay moves beyond its dotcom roots. Available:http://www.ft.com/cms/s/0/df3723ca-1773-11e2-8cbe-00144feabdc0.html#axzz2EbzDqb5Y. Last accessed 10th Dec 2012