(Appendices not included) eBay should continue to focus on growth and continue to fight off competition from rival companys. eBay has dominated the U.S. online auction market ever since its creation in 1996. The current market conditions are changing and eBay must position itself for continued growth. eBay has met most of its key success factors shown in Appendix 1, but must continue to focus on them to sustain its current growth. eBay's two fundamental challenges include, continued growth, and the evolution of the business model. Growth eBay's growth this far has been outstanding but with the slowing market conditions eBay must attract new customers to continue its current growth. eBay has sustained a competitive advantage in the online auction market, but now must transfer this success to additional expansion in the international markets. One of eBay's weaknesses as ,hfi*ryrthe SWOT analysis (Appendix 2) is that eBay has not prepared for the slowing of the U.S. market. With Yahoo exiting out of some international markets this leaves a larger market segment available for eBay lt to absorb.l eBay should achieve a competitive advantage over other online retail companies by continuing to expand into the international markets. The emergence of the Asian and European markets (due to increased internet access) creates a good opportunity for eBay to assert itself as the global leader in online retail. By taking advantage of the opportunities to capture the market early on it will be easier for eBay to introduce new products for continu ed growth.y/ eBay also should consider expanding some of its key categories to capture alarger market share in that industry. Some of eBay's best categories only capture 1-5 percent of the total market for that good. For instance eBay's largest auction category (eBay Motors) has less than a 1 percent market share in the $7.5 billion dollar automotive industry. This represents a significant growth opportunity for eBay to capitalize on. eBay should also take its next 2 largest categories (Consumer electronics, and Computers) and combine them to create eBay Electronics which would be a separate site through eBay, similar to eBay Motors. By creating eBay Electronics, eBay can focus more on its most popular categories to offer greater product selection and information on the electronic oroducts that it sells. Evolving Business Model Another weakness eBay has shown on the attached SWOT analysis (Appendix 2) is that / the company has little experience with fixed-price salesYFor eBay to sustain its success they must eventually offer more fixed-price sales to compete better with Amazon.com and Yahoo. eBay needs to transfer its competitive advantage in the online auction industry into the area of
Inventory would no longer be a good option for them since holding inventory in a rather quick selling environment is deem bad for the company, showing inability to sell based on consumer demand and has to pay inventory cost. They would also need to implement and focus more on consumer demand, increasing the need to hire market researchers and so on to evaluate the right amount of products to supply. Great customer service will be required in order to satisfy large amount of end users rather than just dealing with a few B2B
The idea of supply and demand tends to benefit the company when demands are limited. When items are rare and limited companies have a higher ceiling to price products because the consumer is willing to pay more. On websites like Ebay consumers always pay more than retail price showing that the demand is even higher. All sorts of factors such as limited quantities on released dates or limited new products of much wanted products cause the demands. The people are always looking for the next best thing so the demand for it is there even before the product is created and released.
Is Amazon a bubble waiting to burst? The following discussions in this research paper will explore several key issues from its birth to its debatable future. Amazon is not a stranger to arguments revolving around questions of its longevity and success. When the systemic bubble of 1999 arrived Amazon’s corporate goal was to get big, to do it fast, and to establish a hold of new markets before any other competitor. During this time frame Amazon began branching out and selling anything and everything. With the burst of the internet bubble in 2000 and 2001, Amazon changed its goal from growth to aggressively making profits in all areas of their business. In 2001, Amazon’s founder and CEO stated in a Wall Street Journal article “We’ll ferociously manage the products we carry so that we sell only products that are profitable. The thirty-pound box of nails isn’t long for our world” (Elmer-DeWitt, 2001).
The ecommerce industry is growing faster than ever. TJ Maxx needs to start focusing more on ecommerce not only to keep up with competition, but also to make sure they do well during weak economic periods. ecommerce, overall, tends to do very well during lackluster economic times. TJ Maxx will be able to cut costs more easily the more they expand their ecommerce business. Our business idea will allow them to expand their ecommerce as we will take over their website and delivery. TJX Companies’ three ecommerce sites accounts for only about 1.0% of the company’s total sales. However, the online channel is a key growth driver and TJX is taking initiatives to improve its online business. The ecommerce sales
...e has been registering products on its platform for a long-time, but has assembled out a far-reaching offering with its search results called Google Shopping. And it’s placing advertisements on these product listings by merchants, which takes away promotion dollars and consumer shopping dollars from Amazon. In addition, minor competitors like Groupon are getting concentrated traction in their own e-tailing endeavors with Groupon Goods” (Faruk, 2013).
Eads, Stefani. "Why Amazon's Board is Part of the Problem." BusinessWeek online. http://www.businessweek.com/bwdaily/dnflash/apr2001/nf2001044_127.htm ; April 4, 2001, pages 1-5.
has grown into a $49.7 billion corporation by clearly focusing on the goal of enabling commerce around the globe.
Additionally, brand equity, the company’s reputation, and Best Buy’s internet presence and website are also valuable intangible resources. In fact, the article mentioned that Best Buy has the 11th largest e-commerce website worldwide. Best Buy’s core competency lies within the company’s focus towards “customer-centricity attained thorough the in-depth data analysis and systematic customer segmentation.” To restate that, Best Buy differentiates themselves from their competition by providing expert advice and service at prices that compete with competition.
...oes not dominate the entire market. The Chinese market is so large that even an e-commerce giant like Alibaba is unable to capture the entire market. Here are some other players who are in the market as well:
During early days of its establishment, Amazon appeared as an online retailer of books only. However, with the passage of time, the company expanded its operations rapidly in music and movies. Market reputation and popularity ultimately made Amazon the biggest online retailer of electronics and household goods. This rapid expansion has made Amazon "Earth's Biggest Selection" of cost-effective products (Dennis and Harris). As an online marketplace, Amazon is enjoying a revenue stream without needing any warehouse to keep the product stock.
The company’s vision is” To be world’s most customer oriented company, to create a platform where individuals can visit to find, get anything they desire and purchase it
Online Auction e.g. eBay. In common with new online retail brands, before the emergence of Internet technologies, this concept was not possible. Essentially eBay is a Consumer-to-Consumer (C2C) business. For more information on how online auctions work, see the lesson on eMarketing and price.
Eule, A. (2013). It’s time for Amazon to open its black box. Barron’s, 93(42), 37.
and is especially popular among eBay customers. Fig.1 briefly illustrates Company’s business. The system enables its
Mexican and Canadian markets appear strong economically and politically. In addition, Eastern European, Japanese, and Chinese markets will be logical markets in the near future.