Ebay Essay

644 WordsJul 3, 20113 Pages
Case: Can eBay Continue Growing? 1. What is eBay`s business model and business strategy? How successful has it been? eBay relies on a unique formula. e Bay`s business model and business strategy is a web based company. They stock, no inventory and ship no products; the revenue is derived from information movement. eBay derives the bulk of its revenue from fees and commissions associated with its trading services. Hundreds of thousands of people who put time and effort into selling goods on eBay do not work for the company. Also, a great portion of eBay revenue comes from direct advertising on the site, as well as end-to-end providers, whose services increase the ease and speed of eBay transactions. Acquisition of PayPal, additional transaction – based fee revenue. eBay`s strategy focuses on expansion in geography and scope and on continuing innovation to enhance the variety and appeal of products on its sites. eBay has taken its model to numerous foreign markets and been successful. 2. What are the problems that eBay is currently facing? Yahoo is trying to edge it out of the Asian market by setting up competing auction sites. It is possible that members manage to use it to sell unlawful goods, such as weapons, drugs, alcohol, adult material and cigarettes. The largest threat to eBay is the honesty and integrity of its auctions, over which it has some – but not total – control. Online crime, which becomes more and more sophisticated, the onus is on eBay to provide its users with a secure trade environment. 3. How is eBay trying to solve these problems? Are these good solutions? eBay has entered into a number of relationships with other major players on the e-commerce field. Google and Yahoo. Google gained the exclusive right to display text advertisements on eBay`s international auction sites despite having recently added shopping services

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