7/30/2013 eBay, Inc. and Amazon.com (A) 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 …show more content…
It mainly targets consumers and sellers through its web service. Since the day it was founded, it had launched a program called “Prime” that allows members to free, unlimited two day shipping for an annual fee. It also launched its auction business and also an online supermall called “zShops”, allowing small and medium sized merchants to operate within Amazon’s site for a monthly fee. Lastly, Amazon also launched “Fulfillment by Amazon” that allowed third party seller to build and operate business across multiple channels. As of writing this case, Amazon had been very successful with its online business. Its market share increase and overtook its main competitor eBay, making it the market leader since 2010. Main competitor: eBay’s main competitor is Amazon. Below are some of the features which both company launched in order to compete with each other. eBay : Introduced fixed-pricing trading called Buy-It-Now feature, allowing buyers to acquire the product directly at seller’s pre-established price Launched eBay stores, allowing large retail sellers like The Home Deport to offer goods through fixed price store fronts. Launched a Feedback Forum, a rating system that allowed buyers and sellers to grade each other based on their transaction Acquired Paypal to handle almost all electronic transaction payments exchange between eBay users. Had a Bill Me Later option
2. Installment plan - Enabled people to buy goods over an extended period, without having to put down much money at the same time of purchase
Tom Cruise, John Travolta, Kirstie Alley, Sony Bonno and Lisa Marie Presley all have one similar lifestyle. Yes, they are all famous celebrities, however, this lifestyle has more effect on a person than any career possibly could. These celebrities, among many more, are part of what has been called “The Church of Hollywood.” They are all Scientologists. The Church of Scientology is one manufactured by a former science fiction writer who could not stop lying about himself and his religion up till his death on January 24th, 1986. L. Ron Hubbard lied about everything from his Boy Scout triumphs to his heroism as a decorated soldier. Hubbard is anything but a man of God and yet his followers see him as the ultimate being. Since December of
Luckily for Amazon.com, this company is one the largest retail sellers in the online world. Amazon is a company with a single enterprise that has risen to the top of the Most Innovative Companies List. It has been increased to this fortitude due to this company’s innovative ideas and the ideas for growth for their consumers as well. As technology had changed, so did Amazon by offering Prime which was a membership that could be purchased to allow the consumer to acquire items faster and receive the products more quickly.
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
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]
Aliens built the Egyptian pyramids. Recent research supports the theory that the Pyramids were built long before humans inhabited the area now known as Egypt. It is also nearly impossible for the Egyptians to have lifted and moved the limestone brick used to build these massive structures. Only a more advanced form of life could have constructed such an enormous undertaking, while using advanced mathematics and geography that were not yet known to ancient peoples.
Amazon is an online retailer focused on selection, price and convenience. Incorporated in May 1996, Amazon.com offers programs that allow sellers to sell products on the website and have the fulfillment performed by the seller. In addition to the online marketplace, Amazon also manufactures and sells Kindle devices. Through the different programs offered by Amazon, the company has the edge over their competitors. They are able to secure the lowest price, fastest shipping and offer incentives to the customer, such as Amazon Prime (Amazon, 2014).
Amazon.com is a leading e-retailer and is a globally recognized brand, but is facing increasing competition from bricks and mortar companies setting up an online presence and current e-retailers increasing their geographical and product scope. Amazon.com also faces strong rivalry in its Web Services Business where more specialized web services companies are able to offer more products and have a broader geographical presence.
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
Amazon.com has successfully managed to make its customers to feel that anything they could possibly want could be found on their website. Additionally, its products are marketed at a competitive price. Another important factor is their speedy delivery with their usage of UPS and FedEx (United States) and Royal Mail (United Kingdom). The company also caters for people that prefer online shopping with extra services such as Amazon Prime - a service with a yearly payment, customers are eligible for free next day delivery. Even though Amazon.com is known to be an online seller of most things, it still excels in its original market of book selling. Evidence of such is
Jeff Bezos, founder, chief executive officer, president, and board chairman of the mega Internet store Amazon.com is considered one of the most innovative entrepreneurs of the e-commerce industry. At the age of 31, with just a computer science degree, little funding from his family, and a challenging idea, Bezos set out to pursuit his entrepreneurial vision of a internet bookstore which had turn into the biggest online retailer of our times (Jeff Bezos, 2007).
The company has many strengths. First, Amazon is the world’s leading online retailer. According to the 2016 Annual Report, Amazon had total net sales of US $135, 987 million in 2016. These total net sales include three segments which are North America, International, and AWS. Second, in comparison to many companies, Amazon has a superior logistics and distribution system, which allows the company to actualize improved customer fulfillment. Third, with its prolonged strategic drive on low-cost, differentiation, and focus, Amazon offers a wide range of product at low prices to customers. Fourth, Amazon enjoys global recognition from its customers. As stated earlier, Amazon built a strong brand in very little time. Finally, the
Amazon.com is a Fortune 500 company that has revolutionized the retail industry. In recent years, Amazon has faced increased competition in the highly competitive online retail space as competitors invested heavily in their online storefronts and infrastructure. Positioned in a highly fragmented industry, Amazon must find solutions that can sustain its long term profitability and maintain its market share. To that end, Amazon should grow the Amazon Prime membership base and expand on its media and mobile offerings.
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?
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.