Strengths And Weaknesses 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)

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]

Information system is analyzed as the parity. The reason is lack of a customer service hotline on eBay´s websites. But on the other side they try to meet needs their customer, e.g. facilitate payment system. eBay´s executives do not adopt the management style to Chinese conditions. For the majority of population was the only option to pay by cash, because of non-users of credit cards. Also there are problems with the system of auction, because Chinese people like face to face purchases and they are used to deal the lowest price and in auction- selling format usually the prices went up. These issues caused the evaluation of marketing and customer service as the parity. E-Bay had adopted various expansion strategies, both locally in the US and globally in new international markets. It builds a brand image in the US as an industry leader and tries to expand to other foreign countries. Additional temporary advantage related to the purchase protection because respondents extremely agreed that eBay did the best job in monitoring and protecting its users from purchasing counterfeit items from its site.

Amazon and Ebay are two well-known brands of online shopping sites. They have evolved and grown from small firms to the giants of e-commerce today. In this essay, a comparison would be made between the two firms.

Connected strengths decide eBays force of rivalry and henceforth the productivity and engaging quality of

This use case begins when a potential buyer visits the Ebay website to login or register with the intent of buying something.

EBay is an American transnational corporation that utilizes an online interface to transmit its business globally. To become a transnational corporation your business must facilitate its operations in more than one country. EBay hosts an online marketplace where consumers and merchants can trade new and used goods for discounted prices. EBay has made it easier to shop from other countries through the process of deterritorialization. The website is also a good example of globalizing culture; which will be discussed later in the paper. EBay has not only transformed the online marketplace, but has been especially successful doing so. In an interview conducted with Entrepreneur.com, a former Fortune 500 company IT consultant stated that, “EBay became a $10 billion company selling something used cheaper than new,” (Girard, 2011.) This emphasizes how successful this business has become and what the future may hold for EBay as well as companies alike.

Ebay a company that made its name for buyers to bid on items of interest and for users to browse through a search engine for a broad market of items online world wide. Ebay-Inc., was founded by a 28-year-old software developer in September 1995 by Pierre Omidyar 's San Jose living room. On eBay one can conduct worldwide person-to-person trading, or sales which could be in the a forms of a garage sales, flea markets,

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-commerce is a product that has been available since the early 90’s. It is something that people are familiar with. A product that is now part and parcel of people’s lives.

How the five forces analysis reveal about the nature and strength of the various competitive pressures eBay faces

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.

The first action for both eBay and Taobao in China is to identify their target markets. When eBay launched in China, it identified its target customers as those “well educated, familiar with the Internet, earning a monthly payment over 3,000 RMB, and 20-40 years old” (Chen et al., 2007). Indicated by Shixiong Wu, CEO of eBay China, these mainstream customers are very important to eBay as they help with the healthy growth of electronic market (as cited in Chen et al., 2007). On the other side of the Chinese online market, Taobao decided to focus on Chinese customers who are between 20 and 30 years old with good education levels, after analyzing China’s C2C market for four months. They believe that in a decade, these online shoppers will become mainstream consumers who will influence the buying habits of the whole country (Alibaba, 2006). Comparing the target markets of eBay and Taobao, it is clear that though they all target at young people, Taobao’s target market is much broader and includes students, while eBay’s target customers are professionals who have salaries. Shown by the survey results, in 2007, student buyers made up a quarter of all customers,

eBay Strategy Case Study prepared for E-business, Internet Marketing and E-commerce lecturers and students. Last update, March 2009.

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.