Impact of Internet on Electronic Markets: eBay vs. Amazon

Abstract

Contemporary research studies have proven internet, as a blessing for business arena with the fastest mode of conducting business. The concept of virtual business and e-commerce has added a unique feature to traditional supply chain of business. Therefore, research paper is focused on evaluating the impact of internet on financial performance of electronic markets. With specific emphasis on eBay and Amazon, paper is determined to analyze the degree and nature of impact internet has drawn on their financial health and global standing. Moreover, research has undertaken evaluation of various internet aspects that may enhance the efficiency and productivity of electronic businesses. In the light of exploratory research methodology, paper has conducted financial analysis of eBay and Amazon to scrutinize individual and comparative performance of companies, in the age of internet.

Research findings show that Amazon has always been at advantage due to significant internal factors that enabled it to keep stock price fluctuation under control. Hence, it has provided attractive business investment opportunities for investors by sustaining the influence of internet on financial performance. In the short run, company has proven to be a market leader by utilizing the positive impact of internet in enhancing business performance and securing business against internet vulnerabilities. However, eBay seems to be a suitable choice of long run investment. The company is improving financial performance on yearly basis by incorporating efficient business tools and financial instruments that can help eBay to sustain the impact of internet while becoming the right fit for potential investments in the business. Finally, recommendations have been made based on the research findings.

Key Words: Internet, electronic markets, Amazon, eBay, impact of internet, financial performance, investment opportunities, internet vulnerabilities

Impact of Internet on Electronic Markets: eBay vs. Amazon

Introduction

With the dawn of twenty first century, humanity entered into a world of IT boom that revolutionized the conventional approach of conducting business. Economies that went through the structural transformation from agriculture to service industries were then witnessing the shift from local businesses to strategic expansions on global level. Advancement of IT bestowed businesses with the ability to operate in a virtual setting by targeting a large network of consumers beyond transnational boundaries. The concept of e-commerce and electronic markets introduced various innovations and implications for B2B, B2C and C2C businesses. In addition to this, invention of internet was not less than a miracle for electronic businesses to realize their business objectives and goals of global reach. Internet has truly provided a medium of easy and convenient interaction. Impact of internet on electronic markets has been evident by regular shifts observed in the stiffening e-business competition, relaxed industry regulations on entry and exit, exponential growth rate of e-businesses, and future prospects of the market.

Keeping all these points into consideration, research paper explores the impact of internet technology on electronic markets. The paper provides an overview of global and US electronic markets with the help of statistics. In order to find answer to the research question, the paper narrows down ...