We accept

An Environmental Research Of eBay

The eBay is involved with internet auctions; it has been the most successful company in electric auction that hosts more than 25 million vendors all over the world. Because of its reputation as a respected e-commerce company, it's the best company. The corporation has come quite a distance since its inception by Pierre Omidyar in 1995, it was formerly known as Auction Web, it experienced a big task from its first sale of a broken laser pointer however now its web page leads in advertisements of diverse selection of goods.

This is a thorough business technique for eBay's e-business effort in a detailed record form for the eBay's CEO. It points out the worthiness proposition and evaluation of the business, on top of center competences that the company posses. The statement continues explaining about the research of market segments and evaluation trends of business in terms of competitive forces of potters' five makes. The study clarifies the problems that are confronted within information and communication globally, as eBay business becomes global with certain strains on the key procedures of business, and systems like customer marriage customers, acknowledgement that is already in systems of legacy. Nevertheless, ICT infrastructure, effective use integration of B2B, together with security and specifications.

The hazards that are involved during development level, mainly concentrates on specialized development of product requirements, as well as problems coping with finances. The probability of market monopolization anticipated to factors like customer test change amidst others. The major objective that the business enterprise might have included; keeping owners comfortable, raising the sales development for the business enterprise survival; permitting the survival of the marketplace at the beginning of and during the hard occasions. Another target might be maximizing the profits, to ensure that the business enterprise is supported.

The critical success factors that the analysis found were: bringing up quality of products and development rates; promoting products and efficient service delivery and planning advanced strategies of advertising for earnings increase via increasing the sales. The study found that, the expenses incurred by the business in the beginning of the business includes; cost for technology, technical development costs, consultation fee bills, piloting training costs, jogging costs self growth cost, among other costs. The huge benefits enjoyed include; better cash flows, revenue increase, communication among other advantages brought up in the statement.

The current situation has revealed the business enterprise to an extremely much competitive market with other e-commerce companies like the Amazon, followed by a decrease in the customer tastes with most customers preferring for goods with predetermined prices alternatively than auctioned goods. The eBay auction company has therefore to make initiatives to keep its primary position on the market.

The eBay company has major achievements that when restructured will help it to propel further and achieve its previous glory.

In 2008 its current market segment were able to make over $ 5. 5 billion as compared to 4. 8 million that was generated ten years back 1998.

It has thousands of people that depend on it for their merchandise.

The three season revival plan that was aimed at creating an array of comprehensively organized marketplaces to effectively take the customer demand by locating them at one online location.

The adjustment of the fee structure to support those vendors with set prices.

The modification of the search ordering system to permit first appearance of the highly regarded merchants.

Embracing of new systems such as Skype to increase communication over the internet.

The efforts towards enlargement of the assistance through the acquisition of websites like the stubHub that is involved in ticket offering and the prostores that enables creation of the web stores.

An Environmental analysis of eBay

Company Evaluation and Value Proposition

The eBay company has been working internet auction for a long time. The business has risen to higher height following internet action business. It managed to get t mushroom to an extremely big company dealing with electronic digital marketing over the world. Pierre Omidyar found it in 1995 and in those days, it was known as Auction Web, deriving its name from its function. It now provides a wide range of goods and it has risen to the most notable clime of the business enterprise world to be on of the most recognizable and well-known internet sites.

The company has found its earnings grow ten times in a decade in the United Talk about increasing from $4. 8 million to $5. 5 billion between 1998 to 2008. This is realized from providing merchandised goods. This presents a great expansion meaning the business has a great market share. The company has made very many people to support themselves by offering through the eBay while a couple of them use the business enterprise service to complement their income (Reaves, 2003). Its value to the people is seen by getting the way it has been visited. It surfaced to be the most visited site at 2008 on the net.

Value Proposition

The company can accept change to ensure it realizes its goals. For example, the company in '09 2009 first 1 / 4 revenue went down and required a great treatment. The clients preferring fixed charged retailers brought made the eBay company to lose badly. A lot of the customers opted a far more simple buying technique that did not involve specific things like bidding that needed the majority of their time. They also experience a great pressure using their company competitors, as there emerged so many online sellers making most of the customers to consider the public sale technique outdated.

Therefore, in pursuit of reviving their business they decided to uphold change brought by the clients demand. They began an online fixed price sale and started appearing out of the auction part. In addition they made this more competitive by centralizing the sale system by guaranteeing comprehensive market place array through their systems (Tatnall, 2007). The company also was able to accept change by moving its business by subscribing to secondary market that offers overstock method.

The Company's Central Competencies


The company has a very strong background. That is made from the revenues it gathers from its daily functions. The business collects a whole lot of revenue from fees and commissions associated with sales made. The earnings result from the immediate advertising site while others are from the finish to end providers. The money e gotten is made to expand the business globally with a great deal of efficiency. This makes the company to stand at a competitive border in having their daily services that will require finance.

Advanced Technology

The company has provided the small scale vendors with end to get rid of service using PayPal that enhances business purchase through the eBay. This web site helps to impose various kinds fees on these vendors that include publishing and collection payment of unsold items. In addition they altered their eBay search ordering system to ensure that the highly rated merchants were the main one who appears first to ensure that they acquire more exposure. The machine used an extremely complicated formula that ensures item price is linked with the customer and offered them a place to rank owner according to the customers' satisfaction.

The technology they have has seen their smaller vendors of unique goods that contain before successive. The investor reinforced the move quite definitely making the company to have a great move to the right course so far as expansion is concerned.

Provision of Incentives

The company tweaked their payments towards provision of these service with their retailers. This move was made to cut over the board without group benefiting than the other. The is manufactured the company to gain more recognition as more vendors were able to access the market through the service provide by the company, hence fast expansion.

Market research and trends Analysis of the business enterprise in terms of Porter's competitive causes model. According to the company, the market analysis can be made by use of the five porters' forces. The research assumes that there five makes that are important in deciding the competitive electric power of the business (Mindtools, 2010).

The first one is the provider power. The company has willing their services to the set price suppliers ensuring that they filter their suppliers to small group thus ensuring that they have better business suppliers. They have got used the technology that they need to ensure they are able to connect the suppliers with the customers. The suppliers are created to have power as they are made to choose between the prices that have been put for the marketing purposes.

The next the first is the buyer electric power. The company are able to help the clients to speak to the suppliers and made then to truly have a platform that ensure them they could rate the retailers in line with the price of that they offer. This helps the suppliers to lessen the costs of the products that they are selling trough the potential buyers' involvement. Therefore, the business is able to control a broad market range through this process.

Competitive Rivalry

The eBay company has experienced competition rivalry from different company that offers the same service thus making them to truly have a decrease in the marketplace share. They have tried out to counter this by giving the services that the clients require after ensuring that they have realized this. They have got changed their business goal by introducing a set price system to ensure that apart from the public sale system, they can have another faster means of business. This has made the business to start out being revived.

Threat of substitution is another make that the business has to deal with to ensure that the clients aren't a risk to them by giving similar service. The companies are able to work with very high technology to ensure that the customers aren't able to imitate them. They also have centralizing their business system to ensure they are able to control their business and their top company technique kept a bay from the customer's gain access to.

Threat of a fresh admittance is another pressure that the company has to fight with to ensure that folks do not interfere with the market. They may have strengthened their technology making their market show a little bit firms.

Technology and ICT System

The company's ICT sector did well as they are able to change it out with a lot of ease. The interaction between your businesses to business has been working well as their are able to interact perfectly. The suppliers quickly making their ICT sector to be the best when it was were only available in 1995 have assimilated the technology they have made over the years. The business has made sure that the security of the potential buyers and the sellers are entitled through the proper use of security (Quickmba, 2010). They have been able to maintain this over the years through a complex and multiple technology use. By integration of such technology, they have been very competitive.

Value Proposition

The company is able to embrace change to ensure which it realizes its goals. For instance, the company in 2009 2009 first quarter revenue went down and required a great intervention. The clients preferring fixed charged retailers helped bring made the eBay company to lose badly. A lot of the customers opted a far more simple buying technique that did not involve specific things like bidding that got the majority of their time. They also experience a great pressure from their challengers, as there surfaced so many online vendors making most of the purchasers to consider the public sale technique obsolete.

Therefore, in search of reviving their business they made a decision to uphold change brought by the clients demand. They started an online resolved price sales and started appearing out of the public sale part. They also made this more competitive by centralizing the deal system by guaranteeing comprehensive market place array through their systems (Tatnall, 2007). The business also was able to embrace change by moving its business by joining extra market that offers overstock method.

Business Plan


The risks during the development stage will most likely center on technical development of the merchandise, marketing, personnel requirements, and financial problems. By determining and addressing each of the perceived risks through the development period, you will allay some of your major fears concerning the job and those of buyers as well, (Dictionary, research. 2011)

The Opportunities and Objectives


The chance to monopolize the marketplace by influencing the Changing customer preferences.

The Liberation of customer personal preferences to increase the number of secure and potential clients.

Utilization of the Technological improvement to expand the business through acquisition of more online sites delivery.

Utilization of the Change in customer tastes to improve the eBay reputation.


To enable the marketplace survival at the original set up time and during the crisis like the marketplace or at a time of turmoil.

The goal of the owners and the shareholders to maximize the Profits to be supported.

To keep carefully the owners comfortable by causing enough profit.

To raise the sales development to allow the success of the business

Critical Success Factors

Increase in Product quality and creation rates

Improvement on the Distribution channel s.

Setting of reasonable and competitive Prices

Promotion of the merchandise and the assistance delivery.

Design the advanced Advertisement strategies to raise the revenues through increased sales.

Cost and benefits (ROI)


Costs for technology

produce an e-commerce website which requires high speed connections onto the web, develop a web server, and its own software. The expenses of the repayment systems is among other costs that are relevant, This is whether it is by taking the online obligations directly from the Society's web sites or from an alternative solution third-party agent such as the Pay pal or from a far more expensive service like the use of online lender.

The technological development Costs.

This might entail several programmers who can be able to make an interpretation of eBay efficient requirements and the programs or create the business's website.

The Costs incurred for the consultancy support through design and the implementation

the services of specialists in e-commerce will be required in especially in the design and the implementations to steer the eBay management through this technique.

Costs due to the organization for the piloting training.

In the procedure of the scientific development of the web site, it may be beneficial for you to allow the administration personnel to be using the machine on almost a daily basis to pilot the systems within a training initiative.

The Jogging costs

These are mainly the upkeep of the web server and its own maintenance costs.

The Running costs for change process

This involves the expenses which factors in for the employees of eBay company to teach and adapt to newly launched technology, mainly some of the strategies which will be used to make the changes as easy as is feasible.

Self Advertisements.

In addition to the eBay chance to be on the web it would result in the familiarity to the replies to the e-mail, the queries, and the problems that will require the instantatious or very quick reactions as it is against the replies to the Customer/Customer via characters. To successed online, the eBay company must address the problem of Change Management such that it has into its business, processes which will allow the guiding of the company so that it can successfully boost its Internet success.

The Financial Benefits

Improve Cash flow

The Online obligations results into the lead-time in receiving the payments for the memberships within the same day of program. E-enabling all the regular membership processes is not necessarily on the reengineering functions which makes it quicker than before, it results in a very complete overhaul to the previous ways of controlling account. The E-enabled request and repayments are always made online. For the completion of the application form, the documents is quickly directed via the e-mail to the participants therefore adding on the value by cutting down the longing time. It also saves when it comes on the printing and the postage for the Culture. Although when the member has no email, the documentation continues to be available for downloading for those registered members on the internet site.

The Upsurge in the Revenues

The Internet increases the level of the members therefore increasing on the full total revenues that are collected as fees or payment on goods that are sold.

Non-financial benefits


The direct e-mail marketing incurs very little or no costs when it's compared with the original direct email marketing. The immediate email marketing always permits the versatility of sending the business's concept either day or night time, as they want.


The Website for Information Management allows the membership process to be completely translucent. Management will maintain a position to know:

The total number of members

Members in need of renewing their membership

Members with arrears on account fees

The Final number of the participants and the accredited members

The Forecast into the expected income to be generated in advance by looking at the historic monthly revenues that have been generated.


The option of the Internet implies that eBay becomes a global Business as a result of the exposure. This attracts the actual members internationally. The use of the Web to sell eBay's products eliminates the physical boundaries the customer basic. The Customers all over the world can simply search, find out and purchase the merchandise on the eBay products online.

Wider Considerations

During the signing up process of the prospective people for membership, personal data has been provided. The provided data includes; the members name, the entire address, and the bank card details.

Implementation Plan


Secure a stead market and become to carry out the business enterprise global in a year.

Sign up more than 3 million customers across the world within the first 3 years of procedures.

To boost the quantity of business websites to 10 within the first calendar year.


Secure new marketplaces worldwide- basic sales administrator.

Obtain licenses and permits - legal professional.

Set up regional blog on web sites - project supervisor.

Begin recruiting customers - sales administrator.

Create marketing collateral - marketing administrator.

Solicit recommendations from clients - marriage manager.


Resource allocation

Time allocation


Secure new marketplaces worldwide.

sales manager

3 months


Obtain licenses and permits.

legal executive

I month


Set up local blog online.

project manager



Begin recruiting customers.

sales manager

1 year


Create marketing guarantee.

marketing manager

1 year


Solicit referrals from clients.

relationship manager

I month


Strategies for assessing the e-Business initiative

Balanced Scorecard for eBay

Scorecard Balanced Areas for Measures

Strategic Objective




Year 1


a)Improve the customer retention.

Business potential to retain the customers.



b)Grow the business by focusing on customers.

Bring in more revenues from each customer



c)Increase success range.

Improve the overall profitability selection of the company to over 70%.

profitability range.


d)To improve competence level of the business.

competitive level of the business will be brought up to the highest level.

competence level.


Customer value perspective

a)To prioritize customer needs and value.

The customer needs and value will be highly appreciated.

customer needs.

High appreciation

b)To raise the customer retention/switch over.

The customer retention capability of the business enterprise will be raised to the maximum of 90%.

customer retention potential.


c)Improve the customer satisfaction.

Satisfaction of loyal customers to be enhanced

customer satisfaction.


Process or Internal businesses perspective.

a)Initiate a solid measure of process performance

Initiate a strong way of measuring process performance to increase overall efficiency by 80% this financial time.

process performance


b)To increase productivity.

Formulate regulations of the business to increase productivity.



c)To increase the procedure metrics of the business

Operation metrics of the business enterprise will be improved upon to the best requirements within the consecutive series of 3 years.

highest requirements.


Learning and development perspective.

a)Raise the technological innovations

Increase the technologies of the employees to by encouraging experimentation and creativeness.

experimentation and creativeness.


b)Optimize the company 's workforce

Optimize the labor force by reducing the entire turnover from 17 to 13% by the finish of the financial yr.

Overall turnover.


c)Mentor organizational culture.

organizational culture will be mentored towards increment of the productivity by employing SMART goals.

Increment of the productivity


Major revenues are derived from the fees and the commissions from the sales trades, partly the advertisements on the websites and the finish t end kind of service provision as that of paypal.

The eBay requires heavy financial purchases in the range of over $100 that should enable it maintain a stable position over the market place and gain the benefit over its rivals like the Amazon suppliers who have successfully gained monopoly of services like the sales of goods with preset prices, which is helpful over the traditional means such as auctioning. The mandatory budget can be sourced from the financial institutions in the form of a loan. These finances can be used to upgrade the achievements of the business enterprise.

Web site Analysis of eBay

EBay needs to develop the analytics for studying site performance. This will be used for the purpose of taking measurements, gathering, examination and reporting internet data for the reason of optimizing the web usage. Apart from being truly a tool to be measuring web site traffic, it may also be used both in business and market research. Their request can allow eBay to take out come of traditional printing marketing campaign of advertising. It wills also aiding traffic eradication to the web to the change of website after introduction of promotional initiatives that is new. It will provide eBay with data on the number of visitors' web page views and so forth, that is utilized to gauge acceptance and traffic developments which help when perform general market trends. , (Sterne, 2002)

Being one the analytics categories, off-site web measurements and research no matter being one's own or for the web maintains, can take them 5 weeks. Included in this, is the measurement potential audience website; visibility or show of voices; and finally the buzz or reviews that is going on as a whole on the internet. On the other hand, on-site web analytics can be used to measure the trip of visitors refer to the web page. This involves the conversions and motorists in the contexts, for example, the landing pages that provide encouragement to visitors to buy. On-site we analytics gauge the performance of eBay's website in a framework that is commercial. Typically this data is likened against indicators of key performances for performance examination. In addition, it is used in improving a site on a web, or audience advertising campaign response. In the history, web analytics have been used to refer to on-site visitor measurement. Alternatively, in the past recent years, this factor has been blurred, due to the fact; vendors are finding yourself producing tools the both categories get spanned, (Srinivasan, 2001).

Analysis Recommendations

EBay's SITE Redevelopment,

EBay Company needs to redevelop its web to brand, market and sell well in the market. As an effect, it is much imperative for eBay to redesign its web, to entice new leads and product deal. The company needs to use new software tiles as well as tools of encoding for the development of functionality and appearance web pages. It needs to include AJAX development technology, or quite simply, the technology suits. This technology extremely creates responsive webpages that tend to be active. This in addition combines valuable tools of coding and languages for the forming of one mega-tool that permits smoother communication between customers and the servers of the web. This program generally will provide the following advantages; this can make eBay enjoy almost zero delay services between interface and web servers, as it eliminate the need of web page refreshing. Along the way of minimizing communication between user interface and web server, it helps you to save server bandwidth while improving server performing. As an impact, it reduces the workload on the server. This will take them 1 month. ( Mybestratedwebhosting, 2011)

Though their acquisition programs have became much successful, they still have a responsibility of fabricating a synergy will plan and diversify will detract the eBay from the core business, auction. Though, the management is keeping that this format of hosting fixed-price by sellers who tend to be reliable, makes shopping to be friendlier to customers and far predictable. However, the actual fact remains that, this format is diluting eBay's brand and reputation as a flea market that is powerful. As an undeniable fact, other than financial problems, its stock has tanked down. This will lead to an increase in eBay's site traffic.

Since the Skype business is not working well, the company needs to resale it. The aim of Skype was for buyers and sellers to graph about their trades; however, the expectation was never came to the realization. It is because, though eBay spend about $2. 5 billion, it only gather only apportion of this original cost.

Outsourcing of ICT Infrastructure and Services Delivery

eBay company needs to maximize savings through ICT use. This will make service delivery much effective and effective. Under the elevating pressure from the budget, back again office departments that support PayPal service is supposed to minimize their expenses for the preservation of front side office services. Together, they are needed to provide extra alternatives and services that tend to assist in unlocking savings across the company. The delivery of productive services will reduce the operating bills, add value from rationalize investment, higher accessibility to knew experience and skills, and finally, increasing efficiency of computer department will enable IT personnel more under similar timeframe. As an impact, this will lead to a issue that will lead to the challenge of changing main priorities, gaps ability, and straight influences center service delivery. When fixing such like discord, the must outsource back office departments, Swanson. 2007. This recommendation will take them twelve months due to written agreement applications this needs an approximate of 6 weeks

A part from providing security, the outsourced company will provide management of ICT infrastructures. This can help eBay company built reliability, self confidence and trust much quickly. It is because; eBay will focus on their center business their customers. As an effect of outsourcing, the outsourced company will provide adaptable services that will tent to meet eBay's needs. Having deep technical experience, eBay may also be provided with high specifications of quality services that derive from respect and common respect.

IT Staffing Requirements

The company must come up with it staffing requirements to that will have a tendency to support their new initiatives and its global extension and online delivery. This is because; the IT staffing requirements are generally dictated by the responsibility of computer within the business. It will never bottom part on region, size of the industry, industry among other metrics that are similar. Both most significant parameters are the technological complexity of the company, and the IT team scope.

The IT staffing requirements was to be based on exactly what will lead to effective and useful performances of the average person procedure. In today's world, IT staffing requirements differs depending on local routines; for instance, federal, state, and locals. Generally, the criteria have just been generalized that; the staff should be adequate in quantity with far much appropriate training and guidance. Both education and training levels might also vary, including authorized IT engineers, certified practical engineers, as well as unlicensed practical assistance employees.

Support services for eBay

The firm needs to develop support services for eBay and its own world wide growth and online delivery. The company is supposed to build up parts compatibility gatherings. This increases relevance and freeing up of items, on top of describing in details. The eBay product service support consists of product API and product Metadata products that help in list support parts compatibility. The merchandise information has phone calls that go back product information. It assists in figuring out products that contain been associated with compatibilities. The product API gets request compatibility for products, predicated on their specification; they also find products for the category that is given, and lastly, gets all available details of compatible details for the merchandise described. Alternatively, eBay must put into action product Metadata for the come back of given categories. It gathers all possible worth for multiple property compatibility, among other functions, (Creator program. 2011).

International legal and honest issues

The company must consider international legal and ethical issues. eBay needs to notify users with their partnership with regulation enforcers. It is on blotter of police force indicted that, when eBay regulations get damaged, the breakers will be prosecuted under the court of law. Some of the remedies include; prison period for advertising goods that are counterfeit, fours years for advertising taken boats, and inspection for selling illegitimate ivory, across the boarders, )Docshare, 2011).

The eBay need to work with ethical matters when building trust by the use of ethical principles in the community. There are a few goods and services that require not to be sold to a specific group. A few of such goods might have been burnt through areas and country laws and regulations. It needs also to restrict some other goods that might lead to the sell of dangerous and products that appear to be delicate. Some of them are just restricted but not prohibited, (Docshare. 2011).

Advertising requirements

EBay has to implement hardware, security and software; advertisements requirements for eBay, and its global development and online delivery. For the products and services, must be an investment no matter nature. They have to be connected with their audience. during advertising creation, it requires to be concentrating on a group of people. Let them stop having things that the company likes through the ad but also add a massage to the prospective group, (Businessknowledgesource, 2011).

Their advertisements have to be unforgettable. They need to produce the best 12 months advertisements. Let people remember about the advertisement. There is no need for the firm to hold back till the finish of the month.

More than 7 000 students trust us to do their work
90% of customers place more than 5 orders with us
Special price $5 /page
Check the price
for your assignment