Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
EBay is an online auction website, and pioneered this business model. eBay runs its website, in multiple countries, and acts as an intermediary for buyers and sellers. The company earns its revenue by charging for listings and taking a profit on transactions. eBay has 128 million active users around the world. It also owns PayPal, which is a leading online payment site. eBay was founded in 1995 and has remained the leader in its industry since then (eBay, 2014). eBay has long been a technological follower, however, as other e-commerce sites leapfrogged eBay. The popularity of the eBay brand, however, and the efficiency of its marketplace, have helped it to succeed over time, and it has recently begun to update its technology to be more competitive going forward.
Business Model
eBay operates its business entirely online. The company's flagship brand is a set of websites that act as intermediaries for buyers and sellers, with eBay earning revenue from this activity. In that way, eBay has differed from many other 1990s e-commerce ventures in that it always had cash flow, and a viable business model. eBay has expanded into a number of other areas since then. With its acquisition of PayPal, eBay has been able to move into the online cash flow business, where it takes a cut of money movements around the world, as people send funds to each other for business transactions. eBay has also expanded into...
While this success pales against companies like Amazon and Google, eBay remains one of the bigger online success stories. It made over $16 billion in revenue last year, which is almost double 2009. There were $2.8 billion in profits, and the company has had steady profits at a high level (MSN Moneycentral, 2014). Thus, eBay is considered to be a financial success and its early shareholders have made incredible returns.
There are new business opportunities for eBay. In the online business, companies need to be innovative and act quickly when new market opportunities present themselves. Reports show that eBay is currently moving to acquire more cash in order to invest more into the smartphone payment business. There are new apps that are going to compete with PayPal and that are geared towards mobile devices, so this is a threat to eBay but it is also a bit opportunity because PayPal is the best brand in that online payment industry (Seetharaman, 2014).
Another emerging issue for the company is eBay has faced legal action from the Department of Justice about agreements between tech companies not to poach each other's…
References
eBay. (2014). Who we are. eBay Inc. Retrieved May 2, 2014 from http://www.ebayinc.com/who_we_are/one_company
eBay. (2014). Recommendations. eBay Inc. Retrieved May 2, 2014 from http://pages.ebay.com/search/items/recommendations_learnmore.html
MSN Moneycentral. (2014). eBay. MSNMoneycentral. Retrieved May 2, 2014 from http://investing.money.msn.com/investments/stock-income-statement/?symbol=ebay
Seetharaman, D. (2014). eBay beefs up U.S. war chest in pursuit of growth. Reuters. Retrieved May 2, 2014 from http://www.reuters.com/article/2014/04/29/us-ebay-results-idUSBREA3S13I20140429
Silver, N. (2010). Lessons from eBay: Using technology to push your business. Nik Silver. Retrieved May 2, 2014 from http://niksilver.com/2010/11/07/lessons-from-ebay-using-technology-to-push-your-business/
Streitfeld, D. (2014). eBay settles no-poaching antitrust case. New York Times. Retrieved May 2, 2014 from http://www.nytimes.com/2014/05/02/technology/ebay-settles-antitrust-case-over-no-poaching-deal.html?hpw&rref=technology
Operations Management 3 Purchasing a. The product available for purchase is a pair of Chanel shoes. There are a number of things that I would take into consideration. Buying behavior is strongly related to whether the purchase is a high-involvement purchase or a low-involvement purchase. A high involvement purchase would involve significantly more time and research than might be the case for a low involvement purchase. Therefore, the amount of research, consideration
"In the last year, for example, the online auctioneer made roughly $1 in ad revenue per visitor, compared with Yahoo's estimated $7 in ad revenue per person" (Olsen, 2006). However, eBay has found a solution -- its new alliance with its one-time online commerce rival Google. Rather than continue their bitter rivalry, the two have negotiated a deal "that allows the two companies to share revenue on search-related text
Ebay needs of to pay attention to brand equity and get back to the basics of offering good customer service to its customer base. Otherwise, it is an open market for anyone to step in and take their place. Losing focus of brand and company vision has been the downfall of many corporate giants. References Consumers Union. (2007). Winning at Ebay. How to bid smart & play safe. Consumers Reports.org. August
Ebay The recent (or ongoing) recession has provided an excellent external opportunity for eBay, as the company has long offered many consumer products at discounted rates in addition to higher end auction items. The recession means that more individuals will be seeking bargains for many more expensive consumer items, and eBay can offer used or even new alternatives to paying full retail price for these goods. Growing Internet availability throughout the
EBay Phenomenon About eBay eBay's Phenomenal Success The eBay Phenomenon The number of eBay members online today is incredible. eBay has succeeded in redefining the way the general public buys and sells just about anything, as well as how the world communicates with one another. The reasons for the success and popularity of eBay really come down to a few things: membership, choice, value and communication. This paper will discuss the success of
Kraft Foods' Competitive Strategy Kraft Foods is a one of North America's largest packaged food companies. To reach its current competitive position the organization is changed to great deal of the last decade, with increased focus on the core products, and the sale or spin-off of the non-core divisions, for example the sale of the frozen pizza division 2010 to Nestle, and in 2012 the demerger of Mondel-z International (Kraft