Strategy of Ebay

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E-Bay Business Models and Strategies

E-Business Models and Strategy

Has anyone ever been frustrated when trying to find merchandise that absolutely no one seems to have? Or how about looking for your favorite artists or professional player's autograph? How about looking for new/old Pez dispensers? Well I am sure that anyone who has needed or looked for any of these particular products online has stopped by E-bay to take a gander at what exactly they have to offer. E-bay is an online auction company which acts as an intermediary between buyers and sellers. It was started back in 1995 by a man named Pierre Omidyar, who had started the site as a hobby, originally being used by his girlfriend as a trading exchange in order to collect Pez Dispensers. Who would have thought that today, with what started off as a hobby, could have turned into a widely accepted and growing stock in the NASDAQ stock market. With how technologically advanced we are today, it is easy to see why E-Bay has been continuously growing over these past 12 years, on route to becoming the biggest, most popular online auction site in the world today. However, would E-bay be considered as successful as they are, have they had just introduced the site in today's common e-business world.

E-bay is regarded as the best online auction site in all of the world, and to think that if they would have been introducing this service into today's business world they wouldn't be as successful would be absolutely preposterous. Although, it is tough to consider how E-bays success would have been regarded had it been created in today's time. The introduction of the internet in the 1990's helped play a huge role in the success of e-bay, and has made it what it is today. Conside...

... middle of paper ... customers from E-bay's already enormous customer base simply due to the fact that E-bay offers its customers everything they are looking for from simplicity to accessibility, to products that they cannot seem to find in any store or any other on-line source from around the world. From what was once a small in home hobby designed to trade and purchase Pez dispensers, turned out to be a multibillion dollar industry. E-Bay is operationally sound, especially considering it is still in its buildup period and it has a business model that scales extremely well. The management has shown that it responds quickly and well, and has been working hard to expand the business without jeopardizing the core business strategies .Even though eBay's stock may still be overvalued, the business fundamentals are solid and the only risk is if eBay doesn't grow as fast as it has estimated.

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