EBay’s business model:
The whole idea of EBay’s business models lies on the basis that anything that a person can buy or sell can be facilitated through this online retail shop. According to the case study done by J.Gopalkrishnan and V.K Gupta EBay’s business model attractiveness is based on focusing two long term goals that is to become the largest consumer to consumer online auction house internationally and they build five core marketing strategies. Moreover, research revealed that on these five core strategies (Gopalkrishnan and Gupta 2000). The five core marketing strategies are listed below:
1. Creating Unbeatable customer base:
To attract new customers and to create customer monopoly eBay established a business bond with more than 60 website. For example iBazar in Europe and establishing link with America online that have largest access to the largest user base on the internet and gave special competitive advantages over its rivalries such as AOL (Gopalkrishnan and Gupta 2000).
2. Targeting local and international trading:
To have local presence EBay has locally 53 sites and to maintain global presence it has users in 150 countries (Gopalkrishnan and Gupta 2000).
3. Brand image:
In the begging EBay use viral marketing strategy and ability of EBay to piggyback on competitors unending efforts to retain market recognition. But as the competitors increases its marketing strategy changed (Gopalkrishnan and Gupta 2000).
4. Increasing the trading platform:
As the competition and competitors increased EBay extended its core business into other attractive product categories, for example introduction of higher priced products categories (Gopalkrishnan and Gupta 2000).
5. Maintaining a strong costumer community attraction:
EBay is trying to create a direct interaction between buyer and seller with same interest, that help EBay to create a loyal and active