...eBay Inc. is an American multinational internet consumer-to-consumer corporation, headquartered in San Jose, California. It was founded in 1995, and became a notable success story of the dot-com bubble; it is now a multi-billion dollar business with operations localized in over thirty countries. The company manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. Case: The Globalization of eBay International Business the Globalization of eBay Case study I. Case Background eBay Inc. is an American multinational internet consumer-to-consumer corporation, headquartered in San Jose, California. It was founded in 1995, and became a notable success story of the dot-com bubble; it is now a multi-billion dollar business with operations localized in over thirty countries. The company manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. (Wikipedia) Operations eBay created an efficient distribution system that demanded virtually little supervision. Sellers paid eBay for the opportunity to design, set up, monitor, and supervise their particular auctions while buyers used eBay's software to search for products and place bids. After the auction clock ran out, the seller contacted the winning bidder to negotiate payment and shipping terms. For this matchmaking service, eBay charges between...
Words: 2061 - Pages: 9
...What is ebay core competency? Ebay's core competencies are the strategies that make eBay have an edge over other companies that do the same kind of business it does. Some of eBay's core competence include there customer bay is wide, their service can be accessed anywhere because they are always online and they have placed a lot of time and funds on marketing which makes it more marketable. 1. What is eBay’s core competency? How does it relate to their chosen strategy? eBay’s core competency is in developing and improving software and digital infrastructure tools that lead to the creation of a safe, secure, information-rich on-line trading community. The company’s strategy is to allow users to innovate using the tools that it provides, regardless of what they are buying or selling or where they are buying or selling it. 2. How would you explain how eBay has decided to configure and coordinate its value chain? eBay has a very lean value chain, providing only the tools to make transactions possible and letting users do the work of managing transactions. The core technologies eBay uses are centralized, but because of the need to confine shipping of goods to shorter distances, the need to conduct many transactions in local currencies, and the need to list product descriptions in local languages, eBay has decentralized its value chain configuration by developing largely independent country subsidiaries as well. The company’s vision may be one of seamless global commerce, but the...
Words: 398 - Pages: 2
...4.1. Political eBay is a company, which is not very much influenced by political developments. Some countries might put some policies affecting them in place and the on-going globalization might have effects on them as well. Globalization Globalization is an issue that will positively affect eBay’s business. They will be able to expand internationally and find new markets. Government Policies Some government policies in favor and against interests might be introduced. When looking in the past though, national governments have left e-commerce alone. Regulatory bodies and processes Regulations could be passed making sites ensure a certain level of security in online shopping, increasing customer security but also costs for online businesses. 4.2. Economic Interest and Exchange Rates A future instability in Exchange rates would have heavy effects on eBay. Interest rates would also be affected by the instability and therefore affect eBay in bad ways. Economy Situation and trends Economic situations of course have a direct impact on eBay’s good performance. Another Wall Street crash would probably devastating effects on eBay while a second boom e-commerce would make eBay’s profit rocket. Taxation Taxation might affect eBay in two ways. First of all higher taxing of their profit might be possible. Secondly and more importantly if taxation for every sale in online auction houses would be introduced this would seriously damage eBay. 4.3. Social Lifestyle...
Words: 536 - Pages: 3
...sell their own personal items to anyone with internet access at any time. eBay is full of much strength such as their ability to globalize their brand. This is also one of their main weaknesses. Since eBay is an online business, anyone with internet can access the website. While they have the potential to reach out to everyone, not everyone uses the internet. One of the issues eBay faces is that the internet usage in Asia is very low especially considering over half the population resides there. E commerce was growing everywhere which definitely helps eBay’s business. One of eBay’s great accomplishments is their ability to acquire several other successful businesses. They don’t just take over random businesses because they can; they acquire businesses that can help them out with their own business. For example, PayPal goes hand in hand with the type of business eBay runs. It gives users a more secure way to use their website which consumers definitely appreciate. Along with their feedback forum which allows consumers to voice their opinions, the fact that both sides (buys and sellers) feed off one another and cause the popularity of the other side to rise really makes consumers feel like they are a part of the business. This is part of what makes eBay such a great success. Although they have their share of challenges with globalization and competition, they do so many things right. The idea of eBay originated from French born Pierre Omidyar, a computer science graduate from...
Words: 2598 - Pages: 11
...eBay was launched in 1995 as the first online auction by Pierre Omidyar with the intention of creating a person-to-person trading community based on a democratized, efficient market where everyone could have equal access through the same medium, the internet. The name eBay stood for “electronic Bay area” coined because Pierre’s initial concept was to attract neighbors and other interested San Francisco Bay area residents to the site to buy and sell items of mutual interest. eBay.com provided a venue for online sellers to auction or retail a wide variety of products ranging from computer parts, videos, books, movies, automotives and real estate to buyers from different locations. It brings together buyers and sellers every day on a local, national and international basis through a range of websites. It provides online marketplace for the sale of goods and services, as well as other online commerce, or ecommerce, platforms and online payment solutions to a diverse community of individuals and businesses. Effectively, eBay created a meeting place or community where different sellers and buyers can meet, exchange, trade and make business transactions with each other. The said virtual community marketplace concept destroys the physical barriers of time and geography in real world marketplaces. eBay’s business model is based not only on providing the infrastructure for the said community but also maintaining the trust and safety programs that ensured the integrity of the trading community...
Words: 3659 - Pages: 15
...The Challenges Facing eBay in 2008: Abstract EBay in 2008 announced that its long-time president and CEO, Meg Whitman was to retire and pass on her responsibility to a new president and CEO, John Donahue. After the CEO transition, Donahue faced several significant challenges, including much slower growth in eBay's core online auction business, what to do to make the recent acquisition of Skype profitable, declining numbers of auction customers (chiefly due to increasing competition from Amazon's then new and popular auction site), and weaknesses in key economies across the globe. Competitive advantage is important role in developing sustain strategies. Using porter’s five forces, this paper analyses the five factors which affect eBay strategies. These factors are major in helping the company to identify the key issues and ways of coping with complexity and change. To determine how profitable and the position of eBay in the current market, a strategic group map, weighted competitive strength assessment and financial ratios analysis were conducted. The three analyses reveal that the company is still in good standing even though there is immerse competition which results in profit margin declines. Finally this analysis looks into problems that top management of eBay is facing. With acquisition of other companies that support the company’s core business and adjusting the current strategy to encompass the company’s globalization efforts in good time the company...
Words: 1825 - Pages: 8
...Assess how these segments affect the corporation you chose and the industry in which it operates. EBay Inc. Is one of the leading internet companies in the world. Founded in 1995 by French Iranian Pierre Omidyar, eBay is employing more than 15500 people while generating total revenue of 11.65 billion dollars as of 2011 (eBay Inc 2011 Results). The company was founded in San Jose, California with a vision of connecting people rather then sells them goods. The company has now about a billion registered users and is the most popular shopping site on the Internet. EBay’s mission is to provide a global segment platform where practically anyone can trade practically anything. It features a variety of international sites, specialty sites, 50,000 categories of merchandise, and services that aim to provide users with the necessary tools for efficient online trading in both auction style as well as fixed price formats. Recently eBay added a Want It Now and Best Offer format providing new ways for shoppers to find and buy what they want on the website. Europe, Asia and cross-border trade are major areas of growth for eBay and an immense source of revenue. The firm offers localized sites in 24 countries. On any given day, millions of items are listed on eBay in thousands of categories. People from all over the world buy and sell on eBay (Hellriegel, D., & Slocum). EBay also acquired a number of other companies. These acquisitions include the following: • PayPal. This...
Words: 3026 - Pages: 13
...given that in the U.S. Yahoo and eBay have forged An alliance to protect their dominance in the $12.5 billion online advertising market against Google. But in Asia, the eBay-Yahoo rivalry is ferocious (BusinessWeek.com, 5/26/06, Tech Titans Take Sides). Yes, Yahoo is a big reason that E-bay globalization in the Asian market isn’t successful. Though yahoo has some responsibility in EBAY unsuccessful Asian Market, EBay has lack the ability to conform its business model to the Asian market. EBay inability to tailor its product to the Asian Market has also been a major reason for their failure in the Asian Market. In major markets like Japan, Korea and China, Yahoo subsidiary have outperformed EBay. EBay has a simple business model of drawing revenue from passing information between seller and buyer, which require no necessity to have inventory or ship goods. This business model was embraced by foreign markets including UK, France, Germany and surely became a leader in e-commerce in the US. This success didn’t translate to the Asian Market. The reason is due to neglect of the four P’s concept, adoption, standardization, and entry time and entry market. EBay begin its entry into the Asian market in Japan, but missed their ideal time to enter the market. Yahoo had entered the Japan market six months prior to EBay. This allowed yahoo enough time to accumulate enough market power to force EBay out. Not only did EBay enter the market late, it did...
Words: 876 - Pages: 4
...group assignmen Group 8 eBay- Fine- Tune its Strategy E-commerce assignment group: eBay ABSTRACT 1 EBay is one of the world leading companies, specializing in online retailing market, which has been really famous for its amazing business model and selling strategies at the point of several decades ago. It was once to be deemed as the monopolist in the online auction market business with so many successes. However, as the competition is becoming more and more intense, along with many new effective business strategies coming to the online retailing sector, the companies had committed in some mistakes as well as faced with a number of difficulties. It should and must change in order to keep up with the market speech. This paper is not only to give an overview of eBay’s company but to analyze deeply its current situations, of which providing the 8C’s, 5 forces and other relevant model analysis. In addition, the key reasons for eBay’s changes as well as key factors for its success had been identified. The recommendations for Vietnamese enterprises were also included. High Quality Class No. 2 Business Administration – Group 8 E-commerce assignment group: eBay TABLE OF CONTENT ABSTRACT ------------------------------------------------------------------------------------------------------------ 1 TABLE OF CONTENT ---------------------------------------------------------------------------------------------- 1 I. OVERVIEW OF EBAY-----------------------------...
Words: 6761 - Pages: 28
...Political eBay is a company, which is not very much influenced by political developments. Some countries might put some policies affecting them in place and the on-going globalization might have effects on them as well. Globalization Globalization is an issue that will positively affect eBay’s business. They will be able to expand internationally and find new markets. Government Policies Some government policies in favor and against interests might be introduced. When looking in the past though, national governments have left e-commerce alone. Regulatory bodies and processes Regulations could be passed making sites ensure a certain level of security in online shopping, increasing customer security but also costs for online businesses. 4.2. Economic Interest and Exchange Rates A future instability in Exchange rates would have heavy effects on eBay. Interest rates would also be affected by the instability and therefore affect eBay in bad ways. Economy Situation and trends Economic situations of course have a direct impact on eBay’s good performance. Another Wall Street crash would probably devastating effects on eBay while a second boom e-commerce would make eBay’s profit rocket. Taxation Taxation might affect eBay in two ways. First of all higher taxing of their profit might be possible. Secondly and more importantly if taxation for every sale in online auction houses would be introduced this would seriously damage eBay. 4.3. Social...
Words: 309 - Pages: 2
...From an analytical prospective, explain why do you think PayPal has been so successful throughout the world? PayPal had become the largest, faster and secure online payment system. It is founded in the year 1998 that provided services of transfer money from one another via internet. It started to provide internet payment services in 1999. At first PayPal named as Confinity. In 2001, the name had been changed from Confinity to PayPal. Unluckily, in 2002, eBay successes bought PayPal with US $ 1.5 million. Now, PayPal can said as successful online payment system which recognised by everyone around the world. It is because PayPal have more than 132 million active accounts and operates in 193 worldwide markets. Also, PayPal providing 26 currencies around the world that enabling customers to send, receive and hold funds. PayPal a successful globalization services handled around 8 million of payment every day. In 2012, PayPal which is under eBay organization had contributed 40% of eBay Inc’s revenues. (PayPal, n.d.) PayPal can be said as the leader of secure and convenience online service. It is because PayPal have many year experiences in this field and cooperate with many partners for survival. (Paypal Introduction, n.d.) To sign up an account of PayPal is very easy and fast its only takes few minutes. Customers must provide a valid debit or credit cards number and linked it with own account. PayPal not only a platform for transferring money to sellers, it also can be used...
Words: 944 - Pages: 4
...in more than 45 countries now gives Amazon a strategic advantage in its diversity. Amazon was founded in 1994 in the state of Washington DC, USA. It strategically competes internationally by attaining the lowest prices amongst its competitors. With regards to book selling, Amazon’s biggest competitor is Barnes and Noble. While Barnes and Noble enjoys the spoils of selling in the physical world and online, Amazon is stuck in the cyber world (which evidently keeps costs down but doesn’t help with the sales). Side by side with Barnes and Noble, Amazon faces another fierce competition of WalMart and CostCo Sales. It began as the worlds biggest book store and now it’s the worlds biggest everything store. Competition: Amazon competes mainly with Ebay for online commerce and with Barnes and Noble when it comes to books. Since Amazon sells a wide range of products such as movies, books, games,...
Words: 1297 - Pages: 6
...Comparison of eBay.com and Alibaba.com Thomas Liquori o h T a m i L s o u q . i r e m Digitally signed by Thomas Liquori DN: cn=Thomas Liquori, email=thomasliquori@a ol.com, o=thomasliquori.me, l=New York, NY Date: 2010.09.05 16:57:16 -04'00' 12/16/2009 Professor Reddi: BUS451 By: Thomas Liquori, Danauda Benjamin, and Anca Barbu EBay.com Introduction ................................................................................................................................. 3 EBay.com Products and Services .................................................................................................................. 5 TABLE OF CONTENTS Comparison of eBay.com and Alibaba.com Ebay.com Financial analysis .......................................................................................................................... 6 Ebay.com Last Three Year Financial Graphs ................................................................................................. 7 EBay.com TOWS Matrix Analysis .................................................................................................................. 9 EBAY.com TOWS Matrix Graph ................................................................................................................... 13 Competitive Forces for ebay.com ............................................................................................................... 14 EBay.com Industry Rivalry...
Words: 12768 - Pages: 52
...eBay: “The world’s largest online marketplace”- A Case Study J.Gopalkrishnan* V.K Gupta** Abstract eBay, Inc. is the largest and most popular marketplace on the Internet, allowing members to buy and sell almost anything. Launched in 1995, about 147 million people now use eBay. An estimated 430,000 people in the United States make all or most of their living by selling on eBay. eBay’s online payment service, called PayPal, enables transactions nearly anywhere in the world. eBay proclaims “trust” between buyers and sellers as the key to the success of the marketplace. eBay is the “The world’s Online Marketplace”, which is its positioning statement, and it means many things about the company’s identity. It enables trade on local, national and international basis, with a diverse and passionate community of individuals and small businesses. eBay offers an online platform where millions of items are traded each day. The objective at eBay was to “to develop the work ethic and culture of eBay as a fun, open and trusting environment and to keep the organization focused on the big picture objectives and key priorities. The company market capitalization had surpassed that of even Amazon.com, making it the “world’s most valuable Internet retailer”. Pierre Omidyar, founder, is focused to achieve excellence in strategic management for improving the company’s strategy, sustaining the company’s growth and business performance, and potentially expanding from online auctions into general “etailing”...
Words: 3943 - Pages: 16
...Amazon versus Ebay Amazon versus Ebay Analyze each company’s history, product / services, major customers, major suppliers, and leadership and provide a synopsis of each company. Seattle based Amazon.com was founded in July, 1994, but it was introduced to the world in June, 1995 by its CEO Jeff Bezos. Bezos who was a hedge fund manager in New York left to head west after coming across a finding that the usage of the internet is growing 2300 percent a month. He came up with a plan to get his own retail business online, and headed to Seattle to begin his dream. He started with only 3 employees working out of a garage. Jeff Bezos was able to get Kleiner Perkins Caulfied & Byers to fund Amazon. Some of Amazon.com products include a variety from books, to CDs, videos, and video games. Amazon product line also includes groceries, supplies for pets, greeting cards, and has auctions. A major supplier for Amazon is Ingram, a book distributor, who is still the provider for 60 percent of the books. Amazon is also allied with sites such as Yahoo, Excite, GeoCities, and Netscape. Amazon.com also has links that can be used for household purchases such as groceries and prescriptions. Bezos leadership is demonstrated by observing his comfortableness when he is around the people he addresses on a regular basis from customers, to investors, and the employees. Other leadership qualities of Bezos include his understanding of e-commerce, being focused, having an entrepreneurial team to back...
Words: 2941 - Pages: 12
