Essay on Strategy of Ebay

Ebay, as a company itself, fits more in the category of an oligopoly, which is actually pretty common in any market. Other alternative websites include Yahoo!, Amazon, and Quibids, but there are only a small number of them, certainly not hundreds as in monopolistic competition. Also, eBay is interdependent on the few other auction website companies, competing with the fees they charge, as well as quality of customer support, and buyer/seller reliability. Another characteristic of eBay that coincides with it being considered an oligopoly is the fact that it has numerous entry barriers. It’s such a large company with many restrictions, and it would be hard for an up and coming substitute auction website to break into the market and compete with eBay or the other top companies in the industry. (6)

Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage

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]

A business model is an important and integral part of the business a strategy of any firm whether big or small. The way a business model is developed determines and indicates the values, ethics and principles on the lines of which the business at large will be operating. It also indicates how the business is going to function and covers various internal and external dimensions of a business and the organization as a whole.

Etsy has seen enormous growth since starting in 2005. Within 2 years, the website had over one million

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

* E-bay only focused on online auctions, in which was only a small area of Amazon’s business model.

Business models have a huge impact on how an organizations operate. It is crucial that an organization chose a business model before inception in order to succeed. Basically, business models have become the new basis of competition, replacing product features and benefits as the playing field on which companies emerge as dominant or laggards (Plantes, 2013).

The website eBay is the perfect shopping destination for people who don’t like to leave the comfort of their comfy couch, and for people who enjoy taking advantage of some awesome deals! No matter how big of an online shopping fanatic you consider yourself to be, there is still so much that most people don’t know about this intriguing shopping destination. To find out all that there is to know, all you have to do is explore our article- still from the comfort of your comfy couch! Don’t forget to check back soon for our part two article, where we reveal the top eight lesser-known tricks about eBay!

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

Ebay has many challenges to face such as cyber attacks but despite these they still maintain certain long term prospects. Ebay seems well suited for investment and has potential to increase their capital gains significantly in the long-term.

E-Bay was founded in 1995, it was as radical and cutting-edge as many of the other "dot com" startups launched in that era. Today, however, eBay is one of the world’s most venerable online companies, not to mention one of the most endlessly emulated and discussed companies in the world (Hsiao, 2016). In an Article written by Aron Hsiao, Hsiao states, “eBay is place to buy meaning, you can get nearly anything you need or want at prices better than you can find in traditional brick-and-mortar or even online stores. Though there are lots of rotten deals on eBay, too, the careful consumer can always come out ahead. He then says, “eBay is a place to sell meaning, whether you are a Bix-box retailer or just an average Joe (or Jane) cleaning out your garage, nearly anything you list on eBay will sell if you are flexible enough about the price. E-Bays global reach can even move unusual items that are not in demand in your

On Labor Day, Monday, September 4, 1995, Pierre Omidyar, a 28 years-old software developer, who previously worked for Claris, develops software for Apple computers started eBay from his home. Omidyar first called his website Auction Web because he was told that was his first choice for a website name with the concept of auctioning. The first item he placed to auction was a broken laser pointer. He received a bid and sold for $14.83. Omidyar was very shocked when the item sold and realized that he had created something extraordinary. The website began to grow and gain great familiarity. Omidyar tried to register the site under the domain echobay.com. It was already in usage, so Omidyar decided to shorten the name to eBay.com which originated from Echo Bay Technology. The website is now ready for business and later became a leader in Internet revenue. Items on eBay are listed by categories and anyone with an eBay account can bid on the items. You can find anything on eBay, including cars, real estate, collectibles, concert tickets, CDs, clothing, DVDs, artwork and etc. When items are listed for auction on eBay it can be seen by millions of people all over the world.

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 fact that eBay does have some successful competition means that its strategic capability has become less unique. There is a hint in their competitor profile that innovation and perhaps adaptability to different cultures as they innovate is not core to eBay and something which has been developed more successfully by others working within their own national culture. Indeed, eBay rules in its own territory of North America and in Europe. The search capability of eBay also means that niche players do not really make sense, whereas the consumer trust that comes from being a big player is worth everything when trading on-line, as is the notion that whatever you want it will be on eBay because of its size. Thus, the so-called network effects of eBay (the bigger the company, the more successful it will be) and its first mover advantage that has led to this level are key to its success.