Ebay Analysis
Case Analysis: EBay Inc.
Introduction
EBay Inc., situated in San Jose, California, was founded by Pierre Omidyar in September 1995 as a marketplace for the sale of goods and services powered by a person-to-person on-line trading community. Sellers listed items for sale, and buyers bid on items of interested which was automated using EBay’s listing system to arrange items by category and topic. Focused market segment was the collectibles and developed based on a traditional auction house.
Since the foundation through February 1999, more than 186 million bids had been made on the over 50 million items for sale, resulting in more that $841 million of gross commodities sold with a seven-day average of approximately 800,000 bids per day.
Key strategic issues include the need to reach international markets, the need to create an environment that encourage large corporations to buy and sell, and the opportunity to explore possibilities for further vertical integration. This in mind, eBay needs to evaluate its strategies to ensure it can hold a dominant presence as a global online auction firm. These strategic issues can be translated into recommendations for eBay. But it is not the only player to play such a major role in the online auction arena. Amazon world’s largest online marketplace with the vision of earth's biggest marketplace is the biggest competitor for the EBay Inc. enabling the online community to an extraordinary buy and sell adventure.
EBay should always need to focus and be aware of its rivalry in the long run of the sustainable growth of the company and to explore new geographies and dimensions.
The report will critically analyze the dominant economic and business characteristics of online auction industry, characteristics of EBay’s main competitor behavior. Furthermore, it will look into Porter's five forces model, key success factors of the company and financial stability of the company with its financial ratios from year 1995 to 2000 hence
Introduction
EBay Inc., situated in San Jose, California, was founded by Pierre Omidyar in September 1995 as a marketplace for the sale of goods and services powered by a person-to-person on-line trading community. Sellers listed items for sale, and buyers bid on items of interested which was automated using EBay’s listing system to arrange items by category and topic. Focused market segment was the collectibles and developed based on a traditional auction house.
Since the foundation through February 1999, more than 186 million bids had been made on the over 50 million items for sale, resulting in more that $841 million of gross commodities sold with a seven-day average of approximately 800,000 bids per day.
Key strategic issues include the need to reach international markets, the need to create an environment that encourage large corporations to buy and sell, and the opportunity to explore possibilities for further vertical integration. This in mind, eBay needs to evaluate its strategies to ensure it can hold a dominant presence as a global online auction firm. These strategic issues can be translated into recommendations for eBay. But it is not the only player to play such a major role in the online auction arena. Amazon world’s largest online marketplace with the vision of earth's biggest marketplace is the biggest competitor for the EBay Inc. enabling the online community to an extraordinary buy and sell adventure.
EBay should always need to focus and be aware of its rivalry in the long run of the sustainable growth of the company and to explore new geographies and dimensions.
The report will critically analyze the dominant economic and business characteristics of online auction industry, characteristics of EBay’s main competitor behavior. Furthermore, it will look into Porter's five forces model, key success factors of the company and financial stability of the company with its financial ratios from year 1995 to 2000 hence