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eBay: Different business strategies

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Acepublisher .
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documents in English
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case study
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14 pages
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Advanced
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  1. Introduction
  2. External analysis
    1. Definition of the industry
    2. Analysis of economic forces affecting the industry (PESEL)
    3. Industry Analysis: Porter's Five Forces
    4. Industry segmentation
  3. Internal Analysis
    1. Defining the Enterprise
    2. Resource Analysis
    3. Skills Analysis
    4. Balanced ScoreCard analysis
    5. Analysis of Corporate Governance
  4. Final analysis
  5. Conclusion

eBay was founded on September 3, 1995 in California by a French-Iranian computer programmer Pierre Omidyar. First under the name 'Auction Web', the company quickly became 'eBay'. There is no doubt that eBay currently holds power on auctions that happen online.

Since its inception, the eBay business has been an ambassador for everything that can be sold to owners via the Internet tool in the world, whether they are goods or services.

An analysis of the key factors of the company was made to better understand the strategy of eBay. Has its strategy changed in recent years? Is there risk-taking in the direction of the company? Has it studied all opportunities? What could be the right decisions to be taken at the strategic level so that eBay continues to gain market shares without fear of competitors?

This paper will try to answer many questions in this case. The areas covered in this paper are: study of ebay, the website, strategic analysis, biddings, auctions, sales, marketing, skype, its paypal, yahoo.com, amazon.com, strategic management and marketing strategy of ebay.

From the beginning, the company generated revenues that many companies have for decades tried to achieve. The most surprising success is its development that has been done only on intuition, common sense and a bewildering opportunism.

Indeed, there was no comparable business model. There are many risks for the service online: to thwart hackers who try to put the site off, calm the minds of those who denounce the sale of items in dispute, dodge the legal problems of various countries in which eBay operates, attempting to advance against the protectionism of the institutions.

Despite all this, the number of users grew and with it the results of eBay. Even today,every day brings new avenues of development. eBay adjusts to the new world of e-business: brand development, customer acquisition,technology outsourcing, strategic alliances.

It is clear that Pierre Omidyar (eBay founder) had in mind the telephone industry when he designed this service project on the Internet, because this system works on a similar approach to generate income or sale of products or production, the consumer pays for the use.

The model is simple: net income, less infrastructure costs, less operating expenses (marketing, development, administration) provide the benefits. From the beginning, this economic model has generated positive income. And yet, trading from person to person was regarded as economically wasteful.

Take the example of flea markets, before the seller meets the person seeking the object he holds, he will go days and unpacking. The genius of eBay is to have eliminated this barrier by providing a market place that is universal and always accessible when buyers and sellers meet, exchange information, prices and trade with trading costs at a minimal.

In 1999, eBay gave off 10.8 million dollars profit, which is more than respectable for a company that had only 300 employees. At the same time, Amazon, eBay's main rival on the Internet, posted losses of close tohalf a billion dollars without any prospect of profitability in sight.

Tags: eBay, online auction of goods and services, development of e-business, unique business strategy

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