Internet Trespassing: Bidder's Edge Case Analysis

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]

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

Established and maintained more suppliers that would provide more options and huge discounts in large orders

​New entrants must also consider how well existing companies have mastered the art of converting combining customer and third party seller data together, and converting it into useful information for future customers. Customers are able to see previous customer reviews and seller ratings without even meeting the seller. The transparency of sellers, provide customers with the comfort of knowing what type of seller they are dealing with before a transaction even occurs. New entrants to the industry would not be able to provide potential customers with the same transparency seller transparency that an existing seller would be able to (eBay, 2010).

“Many legal issues are related to e-commerce. When buyers and sellers do not know each other and cannot even see each other (they may even be in different countries), there is a chance of fraud and other crimes over the Internet. During the first few years of EC, the public witnessed many of these, ranging from the creation of a virtual bank that disappeared along with the investors’ deposits, to manipulation of stock prices on the Internet” (Turban et al., 2010).

By increasing the price of its services Schwab looked more like a full-service broker instead of a leading-edge discount broker. The price increase and competition from other discount brokerage firms increased customer expectations regarding service quality that was not being met by Schwab. This resulted in a gap between customer wants and perceived service.

Case 4 – Google: Research Google’s attempt to buy into wireless via the 700 MHz Spectrum Auction.

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

The Lockheed Martin Corp is a fir that deals with aerospace and security issues and is mainly engaged in research work, designing, manufacturing, development as well as integration of advanced technology systems, services as well as products. The major portion of the clients of this corporation is the U.S. Department of defense as well as the federal government agencies. The other section of the clients is the international governments as well as the commercial sale of their products (Lockheed Martin Corporation, 2012a).

* There is Low differentiation in Amazon’s industry in terms of online auctions as customers can easily switch between them and E-Bay as well as online book sales as they can switch to rivals such as Barnes and noble, although Amazon was able to undercut their rivals as they competed on price, By having no high costs in terms of storage of stock or buildings they could pass this benefit onto customers.

3. How does the current market condition affect eBay’s decision? Should eBay go ahead with the offering?

eBay needs to focus on several issues to become more competitive. One issue is the fact that their competitors, like Amazon, make website purchases less difficult. On Amazon a customer can make a quick buy instead of having to bid on an item, wait for the auction to end, and then see if they won the auction. Another issue for eBay is the customer’s perception that scams are more likely on their site since purchases involve individuals and not companies. Even though eBay has the buyer protection plan to counter this idea, some customers might still shy away because they do not want to take a chance of having to go through the dispute resolution process in case it is a scam. When looking at Amazon’s return policy, they back their buyers 100%. If the buyer is not satisfied with the product or it doesn’t match the description that was on the website, Amazon will give the buyer a full refund. Looking at this from a buyer’s perspective, it makes purchasing more convenient to return a product as opposed to having to track down the buyer and trying to work out a resolution. I think that if eBay changes the protection policy and would

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.

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.

What aspects of eBay’s strategic capability are easily copied by new entrants and if so would you copy them and how would you copy them?