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eBay business analysis Free essay! Download now

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eBay business analysis

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Downloads to date: N/A | Words: 614 | Submitted: 14-Nov-2011
Spelling accuracy: 97.2% | Number of pages: 2 | Filetype: Word .doc

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Essay which critically analyses eBay as a business


eBay Inc. operates a marketplace in which anyone, anywhere, can buy or sell practically anything. The Company has developed a web-based marketplace in which a community of buyers and sellers are brought together to browse, buy and sell various items. Through its PayPal service, eBay enables any business or consumer with e-mail to send and receive online payments securely, conveniently and cost-effectively. The Company's marketplace exists as an online trading platform that enables a global community of buyers and sellers to interact and trade with one another. Its platform is a fully automated, topically arranged, intuitive and easy-to-use online service that is available 24 hours a day, seven days a week, enabling sellers to list items for sale in either auction or fixed-price formats, buyers to bid for and/or purchase items of interest and all eBay users to browse through listed items from any place in the world at any time. Given this innovative business concept, eBay has become the world’s largest person-to-person trading community. However, certain challenges still present themselves to the company in both the near and distant future.

Like most firms, eBay faces external environments that are highly turbulent, complex, and


Another aspect of the external environment surrounding eBay is the current and potential competitors in their respective environment. Threat of new entrants is low, despite the relatively simple concept that eBay’s business offers. eBay’s brand was recognized by over 90 million US adults in 1999, and is continuing to grow as the world’s largest P2P online auction company in the world. The larger and more successful eBay gets, the less likely the threat of a new entrant (unless an innovative or additional core competency is established). Bargaining power of suppliers is high because the suppliers are those who are putting the item up for bid. The customer with the highest bid wins the item, therefore the person supplying the item has great bargaining power. Bargaining power of buyers is minimal because essentially there is no bargaining on eBay. Once you place a bid, it is either replaced by a higher bid, or accepted as the highest bid. The Threat of substitute products is high, with other major competitors such as Yahoo!, Lycos, Amazon, and MSN who are smaller niche competitors offering similar services with the same variety of biddable items.

, and global in nature—conditions that might make our break certain successes, especially in today’s dynamic economy. Demographic features that eBay are concerned with include population size, age, geographic distribution, ethnic mix, as well as income distribution. Despite the Internet being available to users around the world, eBay’s successes has been limited to the U.S. region and targeted mainly towards the middle to upper classes. Logically, those with Internet access and items ...

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