eBay Essay

1876 WordsNov 12, 20088 Pages
eBay is the world’s largest internet auction which connects millions of regular people, small businesses and even large corporations. The mission statement of the company is to “provide global trading platform where practically anyone can trade practically anything”. As the time has shown, eBay succeeded at its mission. The company was founded in 1995 by Pierre Omidyar. Today the organization is rapidly expanding and the amount of its customers is growing each year. The current market capitalization of eBay is $18.11 billion. The following essay looks at factors that allowed eBay to enter the market and enabled its success; business model and future viability of the company. Evolution of Internet made eBay possible. Companies can do business with everybody in any country of the world using Internet. It has become pervasive in each aspect of our life and allows companies to provide its customers with benefits that traditional companies cannot offer. Among those benefits are improved content, increased richness of information and high accessibility. Hence, companies that do not take advantage of Internet will lose their market position. Before eBay appeared there were no large scale internet auctions. If people wanted to buy specific or antique items they had to spend a lot of time looking for a supplier. Due to the fact that there were not many physical auctions, high price was always charged. Also, if somebody wanted used and cheaper goods, they attended garage sales, physical markets, bought magazines which listed different used items offered for sale. Overall, the process of looking for needed goods took a lot of time and was very annoying. eBay changed the whole sector of the market and quickly occupied dominant position. In order to understand why companies that existed before missed their opportunity to take advantage of Internet and let eBay to wipe them

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