eBay Analysis Essay

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I. eBay’s Vision II. eBay’s Business Model III. Industry Analysis Background Porter’s five forces SWOT analysis IV. eBay Financials V. Summary and Recommendations I. eBay’s Vision: eBay was founded in the San Jose living room of Pierre Omidyar back in September 1995. The basic vision Omidyar had when he founded what became eBay was to create a person to person trading community based on democratic market principles; these principles allowed for a free flow of information, communication and ultimately transaction on tens of millions of items through the internet. Along with the help of Meg Whitman, a skilled branding manager, and a senior staff from such heavily branded companies as PepsiCo and Disney, they…show more content…
eBay considers the national and international auction operations as two out of their three profit centers. The third profit center is their payment operations, such as their PayPal business; although not considered a core competency, the payment business has grown considerably with eBay’s acquisition of PayPal in 2002. I will discuss the profit center figures in more detail under the financials section. III. Industry Analysis: Background In terms of the online auction industry, eBay’s main competitors have been both the traditional offline auctions, as well as online auction sites. Both the off- and online companies are fragmented and regional in nature, representing a difficult and expensive way to connect buyers and sellers, and typically offer a narrow group of goods to the consumer. More recently, eBay has ventured into the competitive ring of traditional retailing on the web with their fixed price offerings such as Half.com, competing against other internet retailing powerhouses like Amazon.com. However, eBay is now up against other multi-distribution retailers-those brick and mortar retailers, such as WalMart and Target, who also sell items from their websites. Internet usage in general grew dramatically in the 1990s. With the internet came online retailing. The U.S. and Western Europe account for a majority of the internet users along with the customers in online retailing. However, internet usage is

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