Grewal And Ebay: Definition Of The Marketing Strategy?

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]

Inquiry is still inconceivably imperative to consumership as a look at eBay is a useful for finding result of interest. Getting custodians and starting to make accumulations of excellent thing exhibit a push to goad motivation and additionally creative energy. E-business has truly been staggeringly look based in light of the fact that it 's satisfying an utilitarian capacity (Successful Strategic Planning, 1993).

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

e-commerce is all about using the Internet to do business better and faster. Most businesses

People are embracing the ease and simplicity of online shopping/selling more than ever before. The growth rate at which people are embracing the online ecosystem is exponential. "The number of online users either buying or researching products online since 2000 has roughly doubled" (Pew research shit). Online retail has removed the need to physically interact with the buyer/seller, thus placing control entirely in the hands of the people. As a merchant E-commerce also increases the amount of people in which one can advertise to, again putting the focus on quantity. Posting a notice on eBay proves to be more effective than going door to door, and allows potential buyers to find a merchants product much easier. Shopping online is quicker, easier, more reliable, and is a wonderful example of McDonaldization in the modern world.

There are five components within a well- developed strategy. Market segments its competition when it plans to enter. Decisions about an organization’s strategic plan should focus on management’s view of the company’s mission or vision. Its various activities define the essential nature of what the company is should be like. A marketing strategy is composed of several related elements. Businesses are created from creativity and ideas. Many new business plans fail, because there is lack of execution. You need to execute in all areas of your business. Implementing and executing the chosen strategy and evaluating performance all involve marketing and

Online shopping has been growing since businesses put the first online store on the web, now you can shop from anywhere around the world and have it shipped to you directly. Comparing the product against other online store competitors; making it easier to find the best price on the web. You can research the product and make sure this is what you need before buying it. The internet is a twenty-four hour shopping center, you can shop at whatever time you want and wherever you have time for it, making it more convenient to use online shopping. Using it can create more time for the things you would like to do. The negative side of online shopping is you have to wait until the product is shipped to you. The shipping and handling charge is increased for more expedited shipping. There are instances you pay more in shipping than you do for the actual product. Beside shipping charges to purchase, there are shipping charges when you need to return the product back. Also there are those computer problems that can appear; you do not always know if your personal bank information is being

In addition, a huge benefit of shopping online is that it allows product and specification comparison so you can purchase what you need and pay less. Online stores have a lower overhead than the traditional stores offering better deals, and the consumer is able to find the product they want at a better price. In traditional brick-and-mortar stores, sales have limited quantities at hand, but online stores are able to keep a bigger inventory giving online shoppers more opportunities to find a bargain. In fact, shopping at several stores at the same time guarantees the consumer the best deal. Shopping online is simple, and finding the right product is easier. If you are shopping for a digital camera at the store it might be a little overwhelming to see the camera selection with so many specifications. Sales representatives can sometimes be misleading in an effort to make the sale. Online side-by-side product comparison will allow the consumer to

eBay was founded in 1995 and gained the first mover advantage establishing itself as the first major online auction site. The firm started out offering its' services as an intermediary, facilitating the auction of goods by providing a common platform to be used by buyers and sellers. Today the firm has evolved significantly, operating across the globe with more than 97 million different active users registered (eBay, 2012). In total, the organization facilitates the sale of more than US $2,000 every second of every day (eBay, 2012). The growth of the auction service has died classified the development as well as acquisition strategies to provide services and products that complement the core operations. For example, the acquisition of PayPal, the online payment provider has complimented the ability for consumers to pay for goods

This convenience gives consumers immediate feedback on exactly what they are looking for at the precise time. Second, e-commerce offers sellers an opportunity to reduce costs while at the same time provide market expansion since e-commerce is open to anyone with access to the Internet. E-commerce minimizes the need for a physical store as well as the need for staff members; thus reducing overall labor expenses. “Internet technologies also permit sellers to track the interests and preferences of their customers with the customer’s permission and then use this information to build an ongoing relationship with the customer by customizing products and services to meet the customer’s needs” (E-commerce advantages). Not only has e-commerce exploded over the past decade, but year after year, organizations are reaping the benefits of profitable earnings and successful customer service due to their ongoing ability to satisfy needs via the Internet. A fourth advantage e-commerce presents is lower transaction costs. The reason for this is because e-commerce employs an automated order tracking and billing system, therefore, allowing consumers to oversee the entire business cycle from ordering, building, shipping, etc. For example, Dell tracks each computer through the entire manufacturing and shipping process, thus, allowing customer to see exactly where their order is at any given time

The most attractive advantages of online shopping include: Purchase with almost anytime; receive a lot of information at the same time; without the expense of renting the physical store and hiring employees, the price may be cheaper; to marketing economy, this new mode of shopping can lead to a more efficient resource using; online shopping benefits in shorting time and space resources. It’s a business occurs in virtual.

eBay’s competitive strategy is to provide an online auction platform, which, without holding inventory or providing after sale services, connects buyers and sellers in the sale of “collectibles” and unique products and not just commodities. eBay is asset light and by holding no inventory, it has the competitive advantage of being able to scale fast and enter new markets with little capital expenditure. Since eBay is primarily known for its auction services (as opposed to its “Buy-it-now” feature, which is also available), buyers gravitate towards eBay in order to be able to negotiate in a dynamic pricing system. eBay establishes its customer base from a consumer’s desire to make a steal on purchases that they would not find on other websites where goods are offered at a fixed price. This works very well specifically in a lot of the collectible transactions as it is inherently implied that negotiation will be a part of the buying and selling process. In the after sale services realm, the fact that eBay clearly does not get involved shows the strategic thought behind not wanting to get involved in the seller’s end of the transaction. This implies that eBay ends up saving a lot of capital because of not having to come up with shipping and warehousing of goods. eBay’s strategy is coherent because all competitive strategic decisions are heavily based on the online bidding model of providing a platform that

eBay may not be the most inexpensive online auction site, they have the largest variety of products offered. They also appeal to a larger group of consumers that include individual sellers, small entrepreneurs, and corporations all over the world. eBay achieves broad differentiation through their strong eBay community, a global reach not matched by any competitor, and a category span of 27,000.

Internets make life simple and innovate. People are doing business online and trades have become more easy and fast due to this. Internet provides new customs to promote business. Website becomes the essence of online business like to show their services and products. Internet gathers all competitors and consumers in one place. It brings new way to promote, adversities products and services in market (Barry Silverstein, 2002, p.3).

There are also low exit barriers in this industry. EBay needs to keep up with consumer needs and wants along with keeping an eye on its competitors in order to be successful.