The progression of Internet made eBay possible. Companies can do business with everybody in any country of the world using Internet. It is becoming pervasive in each facet of our life and allows companies to provide its customers with benefits that traditional companies cannot offer. Among those benefits are better content, increased richness of information and high convenience. Before eBay came out there were no large size internet auctions. If people wanted to buy specific or traditional items that they had to spend a lot of time buying a supplier. Overall, the procedure of looking for needed goods needed lots of time and was very annoying. eBay is one of the pioneers in the electronic digital commerce market place industry. Its skills is within business-to business (B2B) investing online to commercial, group, or individuals. "ebay is a highly visible company that is hugely successful in their implementation of a business strategy that has their information strategy. It is a shining exemplory case of an Internet age company that truly turns a income, and were able to outlast the 'dotcom crash'. (Chen, 2005)" eBay redefined buying and selling and all its components whether reselling, auction, bidding, trading or getting price quotations by enabling and empowering the online community using its variety of options in electric investing. eBay is currently known as "The World's Online Industry, where customers can operate on a local, countrywide and international basis. With a diverse and ardent community of people and small businesses, eBay offers an online program where millions of items are traded each day. "The eBay Community is made up of more than 100 million people throughout the world who buy and sell in the eBay marketplace. (About eBay, 2007)" Individual buyers and retailers, smaller businesses, and even large businesses create this a strong internet community. eBay associates help one other be successful on the website, causing a strong nature of camaraderie to flourish. Meaningful associations are developed with each other via discussion boards, boards, Online Workshops, eBay Groupings, and the solution Middle for member-to-member relationships. "Each day, members use discussion boards to get help from other experienced users, share their best methods with others who are just getting started, or perhaps socialize (About eBay, 2007)"
It should be stressed, that even though eBay will its business over the Internet, the need for creating a competitive benefits is not taken away. Competitive benefits is something or service an organization's customers place a larger value on than similar offering from a competitor. It is hard to imitate a competitive benefit and received benefits go over costs of providing it. By offering people to buy and sell goods on the web, eBay provides them access to wider selection of items, lower prices and allows its customers to save lots of a lot of time. With all the quick extension of Internet, all users became worried about the quality and reliability of provided information. The costs of providing low quality information are huge for an Internet-based company. To ensure consistency of offers published on the website the company launched a responses system, that allows people to rate the other person and inform others about a possible fraudulence. Hence, trust has been built among eBay users what overcomes the key Internet problem of 21st hundred years - lack of trust. In these ways the business created its competitive advantages. So long as eBay was first with the thought of large level online public sale, it hit the market with the first-mover edge and changed the entire sector of industry. First-mover advantages occurs when a business can significantly impact its market talk about by being first to market with a competitive advantages.
The main benefit for conducting buying and selling online is the convenience it gives. Apart from convenience, eBay serves as a "department store" for the Web providing customers with a variety of choices and options in the goods and services they can get. Along with offering alternatives and the capability of online shopping, they provide secure online purchase facilities increasing the trust and self-confidence of the buying community. "eBay's Trust and Security team is responsible for keeping the marketplace a safe, well-lit place for individuals surrounding the world to trade with each other. (About eBay, 2007)" Dealing with its participants eBay creates a feeling of trust through the development and enforcement of guidelines and policies, creating reputation building programs and the prevention of fraudulence. They work to avoid fraudulence and, should a fraudulence occur they use police and government agencies to enforce its policies. eBay's regulations are intended to create an environments that encourages wide open, honest, and accountable transactions, in so doing creating opportunities for everybody.
ebay's business strategy is to "provide a global trading system where nearly anyone can trade virtually anything. (About eBay, 2007)" is a part with their mission affirmation. They have always been known as an information technology influenced company they need to leverage the use of IT to improve. The company became clearly discovered with its central Site it has built up an extremely loyal following among its customers and stores. But eBay executive believe future development depends on growing beyond a vacation spot site and into a professional of tools and services that electricity e-commerce over the Web. (Holahan, 2007) eBay quickly became a innovator of online trading, shopping, buying and selling, but with the progress of other method of accessing the Web, they need to reengineer its business process to avail all the new methods of being able to access technology. Two main acquisitions of eBay are PayPal and Skype. PayPal is one of the world's safest systems for transferring payments while Skype is the better service provider of VOIP service. VOIP can be an Internet standard protocol that transmits voice phone calls over long distances. These are two strategic acquisitions were done to assist in communication between buyers and sellers and provide higher level of internet security. Overall, an Internet-based company cannot be successful without having solid security functions and procedures. As you can see, eBay efficiently addresses this matter. Also, the company cooperates around Postal Service to ensure in-time deliveries of sold items. The organization started increasing by creating other divisions such as eBay Motors and eBay PROPERTY By making its electronic business platform available in every means of internet access, eBay will be able to provide far more convenient and accessible opportinity for customers to do business. They have designed the "power of three strategy", which refers to their shopping, obligations, and Skype calling services. PayPal, is a innovator in the online obligations market, second and then credit card issuers. eBay sees a future were PayPal is the typical payment processor for online transaction everywhere. From the $11. 4 billion in repayments prepared by PayPal in 2006, 40% are from non eBay sites. Skype is utilized to hook up eBay retailers and buyers; nonetheless it is more of a global Web calling service. (Harahan, 2007)
Their business design was created with an eyes on keeping a individual to individual trading community. In this way they have had the opportunity to construct partnerships, make impressive changes and improvements and monitor from within and exterior for possible future opportunities. Thus, assisting them to be the world's major online public sale company.
In evaluating eBay's business implementation strategy, it could be observed that using information technology and marrying it with commerce became a tried and tested process that allowed eBay to become a leader in this type of endeavor. They wanted to broaden not only the merchandise they offered but also their customer basic and global reach. Utilizing the eBay service you can find virtually whatever you are looking for. eBay competes in the online auction industry by using a extensive differentiation strategy. ebay offers a big variety of products that attracts consumers that range from individual retailers to companies from all around the globe. This is achieved through their eBay community, that includes a global reach not matched by any competitor. This feature of the eBay service is one factor that models the company in addition to the rest. "Customers see the value in using the eBay service. That is why eBay has become so successful. Customer service is the best value proposition of eBay and by influencing the web marketplace, eBay customers can always have the convenience, variety of goods and services, security of trades and accessibility in every varieties of online multimedia provided by eBay. Eventually, eBay is now the typical in electronic business among others have followed suit due to variety of goods and services provided by them.
Buyers of the business are its genuine customers who place their items on public sale and are recharged purchase fees. eBay should thoroughly use and rely on customer romance management analytical and functional software. It'll allow the company to gain insights into patterns of customers, better market them, and keep segmenting market based on qualities of customers to avoid facing Innovator's dilemma.
The threat of new entrants is insignificant because of high access obstacles. eBay is extending through acquisitions and offering reliable and safe services what makes impossible for new companies to compete with the organization. Threat of substitutes is also insignificant so long as Internet stays on the easiest and cost efficient way for individuals to communicate and do business. It should be described that eBay itself offered an alternative service, when companies that been around before did not consider threat of alternatives with their physical auctions, garage sales and so on. The company has generated significant switching costs which a customer would incur if he or she decided to transition to another company.
eBay is building a sustainable business model and the existing market position of the business is very strong. Therefore that competition do not represent extremely significant menace but eBay should become aware of new market indicators and opportunities. As any other company, eBay has certain issues and some decisions of the company could be challenged. In some instances, issues eBay encounters are typical only for Internet-based organizations.
Doing business over the Internet makes the business responsible for moral and legal use of personal information of its customers. eBay must ensure that its customers are secured which security reaches the advanced so that customer information will never be stolen.
eBay should develop specific IT efficiency and efficiency metrics and continuously benchmark themselves against competitors. Tools used in analysis of web traffic can make the business alert to arising issues, new rivals and better understand behavior of customers.