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...
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...al 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.
EBay Inc. gains profits from stockholders, as well as a percentage of each good sold through it. In 2015, eBay’s annual report, as well as its balance sheet and income statement, expressed the income flows and profits over the last three to four years. Using the information gathered, the graph below can express trends which prove that eBay is losing business. The first thing shown is the cost of net revenues which were higher in 2015 than the previous three shown. The percentage of net revenues was also higher in the same year. However the net income was significantly lower in 2015 than in 2013 and 2012. The year 2014 appears to be a sign of struggle, in which case 2015 did result in a better outcome for eBay. This can also be seen when looking at the debt ratio which expressed how close the assets and liabilities are. Since the assets exceeded the liabilities (debt) closely, one could infer that this year was not viewed as profitable. In 2013, the assets were much higher than the liabilities which expressed that this was a better year than 2014 was. According to these figures, the hit eBay took in 2014 could possibly be why the stock dropped around $30 less. The price is currently going up but not by much at all. Some new efforts are likely to be the cause of the current stock price corresponding to the year before
Taking the e-commerce market by storm, Amazon.com was founded in 1994 (Amazon.com). Bringing the company to life was Princeton engineering graduate Jeff Bezos. He first thought of the idea to create Amazon.com when he was simply searcing the internet. He first worked as an investment banker D.E. Shaw & Co. where he was looking for investment opportunities for the company. surprisingly, he found that the internet was growing over 2,000 percent per month (“Jeff Bezos the King of E-Commerce”). He saw this as a massive opportunity and decided to start Amazon.com to first sell books. Amazingly, Amazon.com now has over 232 million products for sale for United States residents including electronics, clothing, and their own movie streaming
Ebay is an American corporation with an online auction and shopping website that allows people to engage in the business of selling and buying goods. It is headquartered in San Jose California, and is a multi-billion dollar company managed in thirty countries. Many people mistake ebay.com for a free website, but that is false. Ebay makes money by charging an invoice seller fee on the basis of if they have sold or listed any items.
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
Etsy e-commerce business has grown rapidly for the past ten years. It wasn’t not long ago that in 2005 Rob Kalin, Chris Maguire, and Haim Schoopik created the company in a Brooklyn apartment. Unfortunately in 2008 two of the co-founder left the company Chris Manguire and Haim Schoopik, because they were frustrated with the number of hours they putting and minimum profit were seen. Meanwhile and solitary owner Rob Kalin hire senior director of product at Yahoo Chad Dickerson. Dickerson main focus was to improve the growth and finance of the company. Dickerson determination lead to replace Rob Kalin and appointed as the new CEO of Etsy in 2013. With a new CEO the company became profitable and by 2015 Etsy IPO worth $100 million. What is Etsy?
Jeff Bezo’s began Amazon in his garage in July 1995 with three Sun workstations setting on wooden doors for tables and extension cords running from everywhere (Academy of Achievement, 2010). Right from the beginning he was a visionary leaving his well paying job as a senior vice president with D. E. Shaw to begin Amazon.com (Academy of Achievement, 2010). Being the visionary that he is he saw an opportunity prompted by the huge growth rate of internet use in a single year and ran with it never looking back. Jeff realized that the internet had “no real commerce to speak of” so he began researching possible businesses (Academy of Achievement, 2010). “After reviewing 20 mail order businesses and deciding which could be conducted more efficiently over the internet than by traditional means he decided on books” (Academy of Achievement, 2010). He thought books were perfect because attempting to send huge catalogs for all the available books would be expensive and cumbersome, but an online resource database that was easy to navigate would provide customers with easy access and a single point from which to shop. “In 30 days, with no press, Amazon had sold books in all 50 states and 45 foreign countries, obviously by the success of Amazon he was right (Academy of Achievement, 2010). In a case study written by Javad Kargar called “Amazon.com in 2003” he stated that “Amazon's online store was a big hit, with about $5 million in the first year of operations” (2004). This huge success so quickly would have confirmed for Jeff that his idea was viable and drove him to continue to strive for more. Jeff Bezo’s charismatic-visionary leadership is the key to his and Amazon’s success.
...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).
Technology has played a huge role in how companies today conduct business with their consumers. Over the past few decades there has been a shift in business models and strategies because of the emerging innovation in technology. One of these innovation are e-commerce, businesses that use e-commerce can now see a major difference in sales and revenue. Amazon has taken the idea of e-commerce and turned it into a successful and profitable business. Amazon Company developed a brilliant strategy for emerging into an already competitive market. This entails the revision of an existing concept. Unlike major companies like Apple, Microsoft that invented new products and services, Amazon did not need to create a whole new product but to create a better business model system that can be used in the future. This helped their rise to fame by taking over an existing idea but improving it to match consumer needs and wants. Overall companies will need to develop better business strategies to be able to evolve into e-commerce industry moving forward.
When Amazon.com first began in 1995, as strictly a book retailer, Bezos knew he had discovered an excellent company. After all, a physical bookstore cannot stock anywhere close to the number of books Amazon can offer online. Within a year, the company had a customer base of approximately 340,000 consumers and daily site visits were huge as well. But Bezos wanted to expand the company to offer music and DVDs, because he realized there was little or no barrier of entry. In the next years Amazon would emerge as a marketplace, expanding the company globally offering products from toys to kitchenware. Because of the relatively cheap prices Amazon was offering and also the growing number of online shoppers, the company was doing tremendous amounts of sales and creating profits.
Since its launch in the mid '90s, Dell's e-commerce business has been a poster child for the benefits of online sales, says Aberdeen Group analyst Kent Allen. The company's strategy of selling over the Internet -- with no retail outlets and no middleman -- has been as discussed, admired and imitated as any e-commerce model. Dell's online sales channel has proven so successful, says Allen that the computer industry must ask: "Does the consumer need to go to the store to buy a PC anymore?"
E-commerce, a system by which people can buy, sell and deal without even seeing the person on the other side, has taken a front seat in improving the economy of countries around the world. Technology today has made it possible for monetary institutions to help locate the customers resources and help solve their problems at any given time through online banking.... ... middle of paper ... ...
and is especially popular among eBay customers. Fig.1 briefly illustrates Company’s business. The system enables its
Business strategy and model: Zappos.com had a differentiation strategy with which they had differentiated themselves from the rest of the market. They had use a unique corporate culture in their company which was one of the major competitive edges of the company. According to the CEO of the company, Tony Hsieh, that everything that they had done at Zappos such as their relationships with 1,200 to 1,500 brands, policies and website style could be copied, however, the only thing that no one could copy from them was their unique culture. Zappos had 10 unique core values as a basis of their company’s culture, employee performance and their overall operations. They were hiring and firing people on the basis of their abilities that whether they were living up to these core values or not.
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.
In conclusion, E-commerce looks more promising in the future. With the evolution of the E-commerce application, every business should take advantage of it. I believe it is the new way of reaching out to a large clientele. In future physical business locations would become more of a showroom. This would simplifier customers way of shopping. Like any other project, E-commerce application needs to be managed probably to succeed and be able to compete in the future.