Ebay ( Case )

The business model of eBay is technology dependant and fast expansion into new untapped markets . The EBay created a vibrant forum that eases customer relations through interaction leading to transactions for profits to eBay . The forum created great value for members that helped eBay to expand its business contacts , thus building a strong foundation for robust growth and survival . EBay business model saves many costs for the traders like (1 ) costs of warehousing (2 ) cost of transportation or shipping (3 ) cost of returns and (4 ) cost of carrying overstock

Theoretically eBay is

not a retailer , but service corporation . EBay is a home name now like Xerox . Online auctioning is eBaying . EBay now captured a strategic position and brand image which is rare for many companies to achieve , today eBay holds 80 of online-auction business Strategic acquisitions have given eBay image of an aggressive strategist , in 2000 , Half .com any many more later

Present Position

In 2002 eBay strategy has five elements

Broadening the trading platform , geographical expansion , new pricing formats like fixed sales

Developing vibrant eBay community

Continuously updating the eBay and half websites

Making end to end personal trading service a vibrant business by value added services

Developing global and U .S . market through truly global platform

The corporates of internet world like Google , Amazon , Yahoo auctions Dell Auctions giving tough competition to eBay and eBay is focused on that

SWOT Analysis

The eBay strengths are

String affinity from its user community

Trading system is cost effective

Trust and safety program from Safeharbor

An entertaining and imposing trading environment , strong values and strong rules

The largest trading forum of buyers , sellers and sale items

Undisputed service quality and safety

Professional , reputed management

Robust financial status

Immune to economics cycles

Weaknesses Technology , the frequent breakdowns Cheats of internet can not...