5.1.1 New Trend Strategy
As the market becomes more competitive, exact prediction, proper strategy, and following responses are more important for e-commerce industry, especially C2C open market.
To see Korean cases, Gmarket and Auction has used scalability of C2C open market and developed successful business model. In the beginning, economic downturn was a blessing for Auction to attract buyers with lower-priced commodity. Relatively new comer, Gmarket was used the anti-monopoly power of Auction and rapidly switched B2B which was initially defaulted to C2C to adapt environmental trends. Undertaken by eBay also can be an opportunity to expand global market for Gmarket. Gmarket and Auction are planning to transform C2C open market over the e-commerce portal site. Due to these changes, those two companies diversify the revenue source from transaction fee to advertising fee.
In China, Taobao takes almost three-fourths of the market share. Its free services competed successfully against rival eBay EachNet. Taobao penetrate that Chinese customers are price-sensitive; for C2C open market the price covers not only product price of buyers but also service fee of sellers. Taobao expected that Chinese market will mature to adopt service charges and wait the right time to shift away from its no-fee model. Those strategies hit the target. The company has been looking to move beyond the Chinese mainland and recently put its idea into action with Yahoo Japan.
5.1.2 Differentiation Strategy
Differentiation strategy provides the company unique differentiator
Gmarket differentiate itself through extraordinary services including ‘Star Shop’, ‘auction by draw’, ‘instant purchase’ ‘negotiation’, and ‘group purchase’. Most of these services ...
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...ced by seizing the opportunity with those four strategies. Because Korea is a powerful country of the IT industry, the disparity in technique and payment system cannot be the success factors. Therefore each firm must differentiate itself, even under same holding company, eBay. In China, the industry must pay attention to Chinese governments’ policy on C2C market and action for Market Opening; because China C2C industry is still at an early stage and will attain maturity in next 5~10 years. They also must compete among all related links of trade including website, payment tool, communication tool, and logistics, because C2C e-commerce platform in China still has room for technology development, especially sale on credit and shipping. Free policy is also temporary success factor. Finding a sustainable profitability mode and business model will be key success factor.
Currently majority revenue is generated by store sales but online sales from the stores’ websites are increasing. With US dollar getting weaker, international sales from these US based websites are increasing too. This creates significant positive outlook for the large incumbent players but also acts as a significant barrier of entry for new players.
The future of economic competitiveness for most enterprises relies on entrance and active participation in the e-commerce market. An essential problem with e-commerce is that the controls and organization are different for each site. There is no standard way of building t...
This valuable information was not available to Gap in the retail store. It allowed Gap to offer customer’s more incentives and discounts for them to spend money all the while increasing the market share of Gap. On-line shopping was treated as a separate division and Gap developed specific warehouses and customer support services to operate this unit. “The development of the online unit saw the accompanying launch of the companies first 800 number and the build out of a full scale call center manned
Online retailing in China, dubbed ‘e-tailing’, has doubled every year since 2003. By 2020 the size of China’s online retail market is predicted to reach up to US$650 billion, exceeding the combined value of online markets in the USA, UK, Japan, German and France. With over 590 million internet users, China boasts the world’s largest online population - more than the US and Japan combined – and still growing at almost 10 per cent per annum.
The online price war, which is caused by unfair practices in China, has been a serious problem in recent years. Millions of retailers have participated in China’s online economy since 2000 due to the huge market and profit. According to the statistic in 2008, China’s online retail market was worth USD 18.8 billion, with a sustained stable growth rate of over 100 percent each year (Gong et al., 2013). Two wide-ranging online price wars happened last year. The majority of large-scale online retailers, such as alibaba, Jingdong, Suning and Gome were involved. A variety of economic issues have been caused by online price wars, which is troubling for the market economy, owning to the frequent unfair practices. It has also led to deleterious effects on social sustainability, such as the aggravated unemployment issue. This report will identify the effects and implications of online price war, focusing on China, analyze the causes and suggest possible solutions.
eBay needs to transfer its competitive advantage in the online auction industry into the area of
In addition to Gap Inc.’s competitive advantage given its multiple brand, channel and geography model, the company plans to build its online success by delivering an industry-leading world class platform for consumers as the retail landscape continues to merge online and in-store shopping experiences. This end-to-end system, which includes capabilities such as ship-from-store, find-in-store and reserve-in-store, is designed to leverage Gap Inc. channels and resources to drive store traffic and conversion, while meeting the needs of customers who increasingly demand an integrated shopping experience.
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.
The Information revolution is changing our daily lives. With the rapid development of computers and the internet, online commerce has become quite common and plays an important role in the modern world. Online business has been booming in recent years. US online retail sales rose an average of 11% in the first three months of 2009 (“US Online Sales Up,” 2009). The growth of online sales may be due to the growing number of consumers who shop online.
This report will attempt to critically analyse and assess the internal and external factors which effected the strategic decisions made by eBay. These strategic decisions consisted of the acquisitions with Skype and PayPal coupled together with an analysis on why eBay failed may have failed in expanding their online presence in eastern parts on the globe such as China.
Electronic Commerce as popularly as E-commerce has become a big deal in our growing economy due to the increase use of online systems. E-commerce now of the fastest growing business in the world. The technology has change the way of business. Business that have physical location have now made it an effort to focus their online business. It is the new sort of business platform where you can make use of different technologies like electronic data interchange or transfer document electronically. Online business is an effective of sales.
E-commerce is about two decades old, yet due to its fascinating dimensions, it remains a challenging area for researchers and professionals.
E-commerce or electronic commerce is carrying out business communications and transactions through computers and over networks. It involves buying and selling of goods and services through digital communication. E-commerce also includes transactions on the World Wide Web and the Internet and means such as electronic funds transfer, smart cards and digital cash. E-commerce covers outward facing processes that interact with customers, suppliers and external partners such as sales, marketing, delivery, customer service, purchasing of raw materials and supplies for production.
E-commerce means that the company runs their business online, not like the traditional business way. We have to go the shopping mall or store to get goods that we need, E-Business is the enabling of electronic communication between any two or more participants in a business relationship. It helps companies capture abroad business field, cost saving, and market opportunity. E-commerce is an important factor that is making people’s lives more efficient.
The high take-up of the Internet leads to variety of opportunities in front of companies. People are more online than ever. They spend many hours each day on Social Networks such as Facebook and Google+. It is no wonder that buying and selling can now be done in a more convenient way. Although traditional shopping is still thriving, online shopping can be an alternative for people wanting to save time and money. If a certain customer plan to go shopping, it could be stressful and also be time consuming. E-business has made shopping or any kind of transactions online much easier and convenient. It introduces new facilities, opportunities and way of shopping for both vendors and customers.