eBay : Company profile and strategy

Résumé du document

With the advent of the new technologies, the distribution network has been completely reframed. The introduction of the Internet has revolutionized the consumer behavior. Indeed, electronic commerce has flourished over the last 5 years and the companies cannot afford to ignore such a development. A new form of business and trade been a huge success due to the Internet. Established in September 1995, eBay is the "World's Online Marketplace for the sale of goods and services by a diverse community of individuals and businesses?.

Extraits

[...] What is important with eBay is that it is the users who are dictating the strategy. These people want to develop their business through eBay, and want to make sure everyone stick to the rules. Security is also a concern, because it is the guarantee for success on the Internet. Mrs Whitman is convinced that holding to such a strategy will make eBay “ahead of the pack”. As it is said in the text, biggest advantage of eBay is its size and the networking effects created. [...]

[...] This service is managed by the PayPal system, providing many guarantees and security to the online buyer. Buyers on eBay have 2 options to purchase items : - in auction-style format, consisting in bidding for a product and waiting to see if you have won by proposing the highest auction. In that way, customers can buy products at a lower price than in traditional commerce. - Or at fixed price. The eBay "Easy to Buy" program lets shoppers find and instantly purchase products easily, safely, and affordably. [...]

[...] Thus, EBay has currently very little competition in the online auction industry. As the company grows, so does its name recognition, making it harder for competition to penetrate its markets. Amazon Despite seemingly distinct business strategies, Amazon and eBay have gradually been competing more closely. Amazon started an Internet auction business in 1999, copying the system launched by eBay. The company did her best to develop its own system, with agreements reached with retailers for them to sell their products on auction on the site. [...]

[...] It is the second eBay's closest competitor. The others There are some others Internet auction business like Epier or uBid for instance. However, there market share in that sector is not very significant. >Table B. Strategy EBay is a young company in the growth stage of its lifecycle. To stay ahead of the competition there are several options according to the text “Queen of the online flea market”. Attack could have been a good option. EBay is already a tempting online shop-front for selling new products. [...]

[...] The faster it grows, the more securely will it hold its top position in the auctioning service market. [...]