...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...
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.............................................................................................. 8 Introduction: 21st Century Marketplace .................................................................................................................. 9 Research Framework ................................................................................................................................................... 17 Case Studies.................................................................................................................................................................... 25 Consumer Reports: Car Buying Guide ............................................................................................................. 25 eBay .................................................................................................................................................................... 65 FDA Nutrition Fact Panels...
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...Forms of Industrial Organization To understand Microeconomics it is imperative to understand the respective industries in which businesses operate. Classified into four distinct market structures, industrial organizations lack any kind of homogeny or consistency that would group them together. The four models are pure monopoly, oligopoly, monopolistic competition, and perfect competition. To begin, these market structures vary according to the number of firms in the structure, product type (similar or different), ease of entry, control over price, and marketing strategy (McConnell, Brue, & Flynn, 2009). For this reason, this discussion will focus on four contemporary firms that exemplify the respective differences in competing structures concluding with a summary of how a conceptualized industry evolves through the four structures during its product life-cycle. Pure Monopoly Structure A pure monopoly company does not always fit the description of a company who has no competition or close substitute. The label of a monopolistic company often follows companies such as Microsoft, even when there are similar products in the market. Microsoft currently holds approximately 90% of market share, whereas competing firms like Macintosh and Linux are close in substitution. Although consumers have the option to purchase systems such as Linux and Macintosh, they seem to choose Microsoft. The article Microsoft's Aggressive New Pricing Strategy, describes an approach that Microsoft...
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...Case Analysis 1: Meg Whitman at eBay Inc. Leadership Behaviors In reading over this Harvard case study about the first CEO of eBay, Meg Whitman we can easily point out several of the leadership behavior techniques that she had exhibited in her many years with eBay. Behaviors included specific task-, relations-, and change-oriented behaviors, and although we will be highlighting only a couple of these behaviors it is important to remember that Meg Whitman’s leadership went well beyond the examples that will be discussed in this analysis. Meg Whitman was hired by the founder of eBay, Pierre Omidyar in March 1998 at a time when the company was still very young and experiencing a fast paced growth. It was the intention of Omidyar to hire someone who would be instrumental in helping eBay thrive during this time of expansion, as it changed from a small start up company into a large established one. In choosing Whitman to fill the position Omidyar will discover he made the right call, because Whitman was experienced enough to know that eBay had a unique culture already in place and that respecting that culture was of the utmost importance, Whitman also understood that implementing sweeping change could not only be demoralizing to current employees, but could also damage to the company’s reputation amongst its customers. For example, when Meg Whitman “scheduled appointments, she quickly developed an appreciation for how different the eBay culture was compared with those of...
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...Intangible assets- practical approach An asset that is not physical in nature. Corporate intellectual property (items such as patents, trademarks, copyrights, business methodologies), goodwill and brand recognition are all common intangible assets in today's marketplace. An intangible asset can be classified as either indefinite or definite depending on the specifics of that asset. A company brand name is considered to be an indefinite asset, as it stays with the company as long as the company continues operations. However, if a company enters a legal agreement to operate under another company's patent, with no plans of extending the agreement, it would have a limited life and would be classified as a definite asset. While intangible assets don't have the obvious physical value of a factory or equipment, they can prove very valuable for a firm and can be critical to its long-term success or failure. During the past years, attention was brought to companies that are based only on intangibles, such a company is Amazon but also big companies that relied mostly on manufacturing goods, started paying more attention to intangibles. Oracle is an American multinational computer technology corporation headquartered in Redwood City, California, United States. The company specializes in developing and marketing computer hardware systems and enterprise software products – particularly its own brands of database management systems. Oracle is the third-largest software maker by revenue...
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...trading platform where practically anyone can trade practically anything. Our Marketplace On an average day, there are millions of items listed on eBay. People come to the eBay marketplace to buy and sell items in thousands of categories including antiques and art, books, business & industrial, cars & other vehicles, clothing & accessories, coins, collectibles, crafts, dolls & bears, electronics & computers, home furnishings, jewelry & watches, movies & DVDs, music, musical instruments, pottery & glass, real estate, sporting goods & memorabilia, stamps, tickets, toys & hobbies and travel. Members from all over the world buy and sell on eBay. Currently, eBay has local sites that serve Australia, Austria, Belgium, Canada, France, Germany, Ireland, Italy, Korea, the Netherlands, New Zealand, Singapore, Spain, Sweden, Switzerland, Taiwan and the United Kingdom. In addition, eBay has a presence in Latin America and China through its investments in MercadoLibre.com and EachNet, respectively. eBay offers a wide variety of features and services that enable members to buy and sell on the site quickly and conveniently. Buyers have the option to purchase items in auction-style format or items can be purchased at fixed price through a feature called Buy-It-Now. In addition, items at fixed price are also available Half.com, an eBay company. eBay is dedicated to its community of members, and has numerous services which enhance the trading experience. Our marketplace services include: online...
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...Baker Business Michele Economics GM 545 Summer A 2009 Project 1 Email: michelebaker26@yahoo.com 1 Gasoline Prices Supply and demand have played a large part in the increase of gasoline prices the nation has experienced lately. The Law of Demand clearly indicates that the rise in demand for gasoline will lead to an increase in prices. This has been a topic that seems to continue coming up in conversations both in the classroom as well as everyday interaction as it seems to be affecting everyone. Some cannot afford to put gas in their SUVs anymore because the prices have been fluctuating and continuously increasing over the last couple of years. Even though I have read several research studies and articles on this before, I found a very interesting point that I had not previously heard of or thought about. I have often wondered what we as Americans can do to reduce demand of gasoline, since the increase in demand has obviously led to the rise in petroleum prices. However, this study shows that the problems may be stemming from the increase usage in both China and India to power their cars and factories. Unfortunately, there is nothing we can do to reduce the demand that other countries are creating. The article suggests that really the only thing that Americans can do is to decrease their personal demand for the fuel by getting rid of the gas guzzling SUVs or turning to alternative sources of transportation. Here in Arizona one of the skeptics of the gasoline price hike was...
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...parameters. Under symmetric independent private values, adapted OLS is a specialization of the method of moments strategy of Laffont, Ossard and Vuong (1995). In contrast to their estimator, here simulation is not required, leading to a computationally simpler procedure. The paper also discusses using estimation results for inference on the shape of the valuation distribution, and applicability outside the symmetric independent private values framework. Copyright 2008 John Wiley & Sons, Ltd. Received 15 September 2006; Revised 1 July 2008 1. INTRODUCTION The field of econometrics of auctions has been successful in providing methods for the investigation of auction data that are well grounded in economic theory and allow for inference on the structure of an auction environment. Today, a researcher has a number of alternative structural methods, especially within the independent private-values paradigm (IPVP); an excellent reference to this literature is the book by Paarsch and Hong (2006). To name a few alternatives, it is possible to use maximum likelihood (Donald and Paarsch, 1996), nonparametric methods (Guerre et al., 2000), simulated nonlinear least squares (Laffont et al., 1995) and bounds estimation of incomplete models (Haile and Tamer, 2003). However, it is still common to...
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...appreciate time and this is done basically on the information provided. Business Intelligence systems are used to enrich the timeliness of information necessary for the company, to allow access to all the information wherever it is stored and offer the information in business terminologies. It reduces the distribution costs spent on the information as well as the handling time, helping planning and forecasting. Understanding of its important role, eBay – the largest and most popular marketplace on Internet has applied and used IS in their business and become very successful company. Launched in 1995, eBay started as a place to trade collectables and hard-to-find items, after just few years eBay become more and more popular, known as a global marketplace where business and individuals can buy and sell practically anything. eBay is a highly visible company that has been immensely successful in their implementation of a business strategy that incorporates their information strategy. By remaining flexible and adaptable, the ever-changing eBay has developed a technology platform that differentiates them from their...
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...December 2006, eBay Inc., a US company that offered e-commerce, e-payments and internet communication services globally, announced its plan to form a joint venture with China-based online portal and wireless operator, TOM Online, in which eBay would have 49% ownership.1 The move reflected the increasing difficulties foreign internet companies were facing in their attempts to snatch a share of the Chinese market amid fierce competition and a changing market environment. eBay first set foot in China in 2002 by acquiring 33% interest in EachNet—a domestic online auction company, followed by a full acquisition in 2003.2,3 In 2005, eBay acquired Skype4 to expand into the online communication sector. While Skype was a wholly owned subsidiary of eBay globally, it operated indirectly in China via a joint venture with TOM Online. Due to this existing relationship between the two companies,5 TOM Online seemed to be a natural choice of partner for eBay’s subsequent decision with regards to its online marketplace business. Recognising TOM Online’s local knowledge and political connections, eBay believed that a joint venture would benefit its failing business in China and help the company further develop its Chinese market.6 Some analysts questioned whether political connections alone were the answer and suggested that eBay focus on its product and service offerings.7 Vara, V. and Chao, L. (20 December 2006) “EBay’s China retreat highlights a tough market”, Wall Street Journal. eBay (Date Unknown)...
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...Developing Pricing Strategies and Programs Price is the one element of the marketing mix that produces revenue; the other elements produce costs. Prices are perhaps the easiest element of the marketing program to adjust; product features, channels, and even communications take more time. Price also communicates to the market the company’s intended value positioning of its product or brand. A well-designed and marketed product can command a price premium and reap big profits. But new economic realities have caused many consumers to pinch pennies, and many companies have had to carefully review their pricing strategies as a result. For its entire century-and-a-half history, Tiffany’s name has connoted diamonds and luxury. Tiffany designed a pitcher for Abraham Lincoln’s inaugural, made swords for the Civil War, introduced sterling silver to the United States, and designed the “E Pluribus Unum” insignia that adorns $1 bills as well as the Super Bowl and NASCAR trophies. A cultural icon—its Tiffany Blue color is even trademarked—Tiffany has survived the economy’s numerous ups and downs through the years. With the emergence in the late 1990s of the notion of “affordable luxuries,” Tiffany seized the moment by creating a line of cheaper silver jewelry. Its “Return to Tiffany” silver bracelet became a must-have item for teens of a certain set. Earnings skyrocketed for the next five years, but the affordable jewelry brought both an image and a pricing crisis for the company: What...
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...382 PART 5 SHAPING THE MARKET OFFERINGS ter p ha C 14 In This Chapter, We Will Address the Following Questions 1. How do consumers process and evaluate prices? 2. How should a company set prices initially for products or services? 3. How should a company adapt prices to meet varying circumstances and opportunities? 4. When should a company initiate a price change? 5. How should a company respond to a competitor’s price change? As a high-end luxury goods provider, Tiffany & Co. knows the importance of preserving the integrity of its prices. Developing Pricing Strategies and Programs Price is the one element of the marketing mix that produces revenue; the other elements produce costs. Prices are perhaps the easiest element of the marketing program to adjust; product features, channels, and even communications take more time. Price also communicates to the market the company’s intended value positioning of its product or brand. A well-designed and marketed product can command a price premium and reap big profits. But new economic realities have caused many consumers to pinch pennies, and many companies have had to carefully review their pricing strategies as a result. For its entire century-and-a-half history, Tiffany’s name has connoted diamonds and luxury. Tiffany designed a pitcher for Abraham Lincoln’s inaugural, made swords for the Civil War, introduced sterling silver to the United States, and designed the “E Pluribus Unum” insignia that adorns $1 bills...
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...New Business Seller Guide Roadmap to Success July 2013 Action plan Ready: Start your engine q Register as a business on eBay and get access to exclusive services Go: Accelerate your sales q Experiment with a variety of formats q Write great titles with relevant keywords and describe items completely (including flaws) multiple angles on a neutral background Winner’s circle: Earn eBay Top Rated status and rewards q Complete 100 transactions with $1,000 in sales from US buyers least 98% q Create a seller account and verify your business information subscription level for PayPal q Include up to 12 clear, well-lit photos from q Optimize your listings for mobile devices q Price items competitively and offer free shipping or combined shipping discounts q Calculate the lowest fees and choose the right q Select your payment methods and sign up See page 4 q Maintain a positive feedback rating of at q Maintain 0.5% or fewer transactions with low detailed seller ratings (DSRs) and 0.3% or fewer eBay and PayPal Buyer Protection closed cases without seller resolution tracking by end of next business day, and offer minimum14-day returns with money-back option a personal touch See page 13 Set: Get your bearings q Get tips and best practices in the Seller Information Center Size up the competition in search results, completed listings, and Marketplace Research selling price q Sell internationally with ease q Use item specifics and product details to...
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...eBay, Inc. (2002) Overview eBay 2002 Founded in 1995 by Pierre Omidyar and Jeff Skoll, the eBay online marketplace was developed in order to provide individuals a place to sell goods and services. eBay became a phenomenon that attracted some 10 million auctions in its first three years. This success provided eBay the necessary foundation to complete an initial public offering (IPO) in 1998. eBay’s online auction concept is relatively simple. Sellers register with eBay and use its suite of online tools to place nearly any item up for sale. Buyers navigate eBay’s vast array of categories or use search functionality to find goods or services that they wish to bid on. Once the auction is won, the buyer may use PayPal, the online payment service, to complete the transaction. Perhaps the most powerful part of the eBay process lies with the feedback scores that are given by both buyer and seller following the completion of the transaction. Feedback scores are public information and allow other buyers and sellers to determine whether a person is worthy of doing business with or not. A negative feedback on eBay is akin to having a bad credit score with a bank. By providing a marketplace for “new and scarce goods, end-of-life products, and used and vintage items,” eBay provides a valuable service in which they attempt to “make inefficient markets more efficient.[1]” While other Internet business models have failed in recent years...
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...example of a major retail bank that set the goal of improving customer service. It embarked on a program hailed as scientific: Some branches Katy Lemay Harvard Business Review 69 How to Design Smart Business Experiments grams). Now, a quantitatively trained were labeled “laboratories”; the new IN BRIEF MBA can oversee the process, assisted approaches being tried were known as by software that will help determine “experiments.” Unfortunately, however, » Too many business innovations are what kind of samples are necessary, the methodology wasn’t as rigorous as launched on a wing and a prayer – which sites to use for testing and conthe rhetoric implied. Eager to try out despite the fact that it’s now reasontrols, and whether any changes resulta variety of ideas, the bank changed able to expect truly valid tests. ing from experiments are statistically many things at once in its “labs,” mak» With a small investment in...
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