Competitive Advantage: Case Of Ebay

Ebay is one of the world's largest e-commerce and multinational corporation. Here are some facts, the company was launched in 1995 as " Auction Web," on labor day weekend by Pierre Omidyar. Later the name was officially changed to ebay in 1997 because many customers and media coverage referred the website as ebay. It has over 200 million registered users by 2015 and branched out into twenty five countries. There are thirty five thousand employees working on eBay in that 42% are female. The company net revenue by 2014 is 17.9 billion dollars. There are about 25 million sellers and the number of items listed in the market places are 800 million. The daily search on eBay is 250 million and the hourly search is 11 million. 60% of company revenue comes from

E-commerce is the online transaction of goods and services, which has completely revolutionized business and the way in which businesses can operate. It’s now easier for customers to compare prices/products with a little time spent browsing the Internet opposed to dragging themselves to the stores. This means that e-commerce is having an impact on what and how much businesses sell, therefore influencing the profits the business gets. In this essay I will consider whether an e-commerce strategy is the best way for a business to increase their profits, or whether e-commerce is not the best strategy to do this. I will be arguing that

Situation of the case: eBay is now faced with a direct competitor, Amazon.com. Even though Amazon.com has received most of the hype and publicity surrounding e-commerce, eBay has also built an innovative business truly sited to the internet. Initially, Amazon’s goal was to be the “Earth’s Biggest Bookstore” Since then, the company also entered music, video, toys and electronics business, extending the retail capabilities it had developed for books. Meanwhile, eBay aims to offer online marketplaces for the sale of goods and services, supplemented by other e-commerce platforms and online payment solutions. This case briefly explores the situation faced by both Amazon and eBay as they compete

Adoption of an improper organizational structure design that is not flexible enough to the unstable and the rapidly changing external environment in eBay’s domestic and international markets.

In chapter 8, corporations are majority using information technology strategy in order to provide business units with competitive advantages. This proven by many researchers had identified opportunities of information technology in creating competitive advantages. According to Rockart and Scott Morton (1984), the opportunities are information technology able to improve each value adding function, link with customers and suppliers to increase

Competitive superiority: whose resource is really better. eBay has improved substantially in terms of committing internal resources to improving customer experience. Other sites such as yahoo or Amazon, might still have better services, but eBay has

Today eBay users can bid anything from office equipment’s to real estate to cars. It is surprisingly true but perplexing that “Why has eBay prevailed, but others have failed?” Though many of its successes resulted from its adaptive approach, eBay’s accomplishments can also be explained by the company’s consistent focus on two long-term goals that is “becoming the

eBay Incorporated, a US company headquartered in San Jose, California, provides online marketplaces for the sale of goods and services, online payments services, and online communication offerings to individuals and business in the United States and internationally. With more than 90 million active users globally, their collective impact on e-commerce is staggering: In 2009, the total worth of goods sold on eBay was $60 billion — $2,000 every second. The business strategy of eBay is exemplified in the company’s mission statement, “eBay’s mission is to provide a global trading platform where practically anyone can trade practically anything”.

In Internet time the attention span of customer is just 8 seconds. After that a shopper typically moves on. What's more is that the Forrester research reports that 42% of the people leave a site unsatisfied will never return (Forrester, 1999). The cost of business in uncompleted orders is simply staggering- early estimates put the monthly retailing losses at $58 million.

By implementing their business model, eBay employed three main tactics. First, they looked to build strategic partnerships, such as PayPal and Half.com. Second, they looked for customer feedback to constantly make changes and improvements. Finally, they monitored of their internal and external environments for possible opportunities. By initiating all of these tactics, eBay is able to adapt to the changing ways while keeping their customers satisfied. To be successful eBay must continue to mold and change their business model to satisfy customers and keep the level of quality they employ to the highest degree possible. If eBay is able to work these ideas into their everyday business life, they will continue to be successful. Furthermore, eBay must continue to improve its level of service, strengthen community trust and safety, increase system reliability, enhance website features and functionality, and broaden the company’s trading platform by growing existing product categories and promoting new product categories in order to cope with competitive pressures and maintain its existing customers and attract new ones. Finally, they can expand their market to the growing population of older generations by making their websites more attractive by catering to

Beginning with the need to stay in step with customer needs and progressing to the synchronization of supply chains, enterprise IT systems, and Customer Relationship Management (CRM) to ensure profitable sales are made, IT is a catalyst of competitive strength. The need for automating the value chain of any business

The e-commerce company’s strategy focus allowed it to differentiate itself by providing better services to its customers. The company put an innovative business model in which customers would try out the company’s services without any cost. As time progressed, the company was able to generate revenue from alternative means. In addition, the company began to generate revenue from an increase in the willingness of its users to pay for additional services. First mover advantage is referred to as a competitive advantage because it allows the first company to acquire superior brand recognition and customer loyalty, while allowing the company to perfect its product or service. Alibaba’s operations stated when e-commerce was at infancy stage in

Strategy can be defined as a series of correlated decisions at each point of time (or steps, choices = tactics) based on the information available at each point of time (= information set) to reduce the dispersion of eventualities (variance or standard deviation) about a particular future desired outcome (mean or median).

It is widely accepted that the e-commerce market is most affected by the move to savvy, information fuelled customers (Constantinides, 2002). By focusing the first case study on a non-e-commerce company and the second on an e-commerce company the relevance of

In today’s global economy, E-commerce has created a very cost effective way of reaching out to the customers. In this assignment, a clear description of ecommerce opportunities, strengths, technological advancement and how e-commerce is helping out businesses are briefly explained. The role of- ecommerce is studied by an e commerce business Souq.com.