Ebay Case Essay

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CASE STUDY MRKG 2374 Marketing Case Studies “Ebay” 3/10/2012 Define the Issue: The problems with disappointed buyers complaining about issues with transaction, refunds, shipping and customer service. History & Background: Ebay was founded in Pierre Omidyar's San Jose living room back in September 1995. In September of 1998 eBay has its initial public stock offering. In July of 2000, a rare baseball card sold for 1.2 million dollars. This was the highest paying auction in eBay's history up until that point. In May of 2001 eBay decided to ban the sale of any item related to crime including letters from murders, crime scene memorabilia, and seats to view executions. The Website Half.com was bought by eBay in 2000 and fully integrated into eBay's web community in 2001. In October of 2002 eBay acquired Paypal Inc. for 1.5 billion dollars. Paypal is the preferred way of making payments for eBay auctions and is growing in popularity for other Internet uses. By the year 2004 eBay had earned 3.3 billion dollars in revenue. Over 135 million people worldwide use eBay. Strengths: largest electronic auction website (leader of online auctions), no competition in online auction field, good customer relationship management, innovations. Weaknesses: technological developments, only online service, shipping. Opportunity: expansion globally, new markets, usage of internet. Threats: consumer confidence, competition(in online shopping not in online auction), economical downturn worldwide. SWOT Analysis: Currently, all online businesses need technological development, which consumers are waiting from them either. It will bring ebay more confidence of consumers. Using its reputation Ebay can jump into developing global market that will increase annual revenue of the company. Competition is important aspect for Ebay, where competitive advantaged online companies

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