STRATEGIC ANALYSIS EBAY

Strategic Analysis eBay

Strategic Analysis eBay

Introduction

EBay is a very famous company in USA which was established in September 1995 by the Iranian computer programmer Pierre Omidyar. Initially, he made his own personal website and gave it the name of Auction Web. All these developments took place when the Internet and the concept of World Wide Web were relatively new. It was then after 1996, the number of internet users increased rapidly from 50,000 to 1 million people. At that time, people started taking interest in the internet and participated in internet shopping. Although during those days, there was no reliable payment system which would keep both the buyer and seller secure. The concept of Encrypted websites was not there at that time but it got developed after few years (Pascale, 1990).

Products and Services

EBay operates a website, “e-Bay”.com which facilitates the exchange of goods, and services over the Internet. EBay owns and leases properties in the US and 25 other countries around the world. EBay is an online company that provides online marketplaces for the sale of goods and services. The company's key products and services include the following: (Pascale, 1990).

The role of Ebay is to provide a suitable platform to both the sellers and buyers to exchange transactions with each other and they are not responsible for any kind of outcome that would take place. It is just that eBay has created convenience especially for the buyers to purchase their desired products on a website in order to avoid the hassle of physical shopping. The only thing which becomes critical is the payment system but it is even no more a great concern because of the efficiency of PayPal payment system. So, it is quite clear that eBay has been very successful in marketing, buying and selling of the products advertised by the marketers. It is a major development in the field of technology which has a bright scope in future as well. Therefore, all the aspects related to Marketing on eBay have been discussed in detail.

Market situation and structure

The company has divided it's into three segments, which include the, payments, marketplaces, and communications. The marketplaces segment deals with providing a platform for the online community to trade and interact with one another. The platforms include providing software services and tools which are available at minimum cost or are free of cost. This marketplace is the main source which provides the medium for core online commerce platform.

The listing and final value feature includes the subscription fees, lead referral fees, transaction and advertising fees are various means through which this segment generates revenue. The company had 90.1 million active users in 2009, while at the end of 2008 they are compared to approximately 87.7 million. There are many is a many users who bid and buy items who buy products online throughout the year. PayPal is the most efficient online payment in which enables individuals to receive payments online in businesses190 markets worldwide (Slywotzky, ...