Case Study on Ebay

Amazon and Ebay are two well-known brands of online shopping sites. They have evolved and grown from small firms to the giants of e-commerce today. In this essay, a comparison would be made between the two firms.

This use case begins when a potential buyer visits the Ebay website to login or register with the intent of buying something.

eBay first entered the Chinese market in 2002 by acquiring a 33% stake in its local counterpart, EachNet, followed by a full acquisition a year later in 2003. Critically assess eBay.s choice of market entry strategy for China (use Key Country Matrix), listing both the advantages and disadvantages of its acquisition strategy (use Drivers (YIP) -CAGE Matrix). 30%

1.) Seller is inquiring about the removal order items that she created last Aug. 14 and she still doesn't receive the item.

E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the Internet. These business transactions occur either business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business. The terms e-commerceand e-business are often used interchangeably. The term e-tail is also sometimes used in reference to transactional processes around online retail, (SearchCIO, 2015). In other words e-commerce is the buying and selling of goods and services online.

What are the major limitations on the growth of e-commence? Which is potentially the toughest to overcome?

Many market opportunities have helped the Alibaba Group thrive in the recent years. The location is the first advantage because China has over 560 million users of internet spending over 20 hours online a week. China is the biggest internet market globally (Bhasin, 2016). This is twice the size of internet users in United States of America. China is gradually shifting the traditional retailing in favor of latest trend of e-tailing. The good relationship with the government of China has enabled it to carry its operations so well in the market. For example, Alibaba Group was among the companies selected by the government of China to join the Internet banking. This is a huge opportunity especially where banks are state owned (Shiying & Avery, 2009). The cost cutting associated with the huge volume of sales. For example, Tmall and Taobao accounted for over 50 percent of all the Chinese delivered parcels. Tmall’s and Taobao’s combined transaction volume in 2012 was about one trillion yuan. This figure was more than eBay and Amazon transaction volumes combined.

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The Alibaba group has thrived in the Chinese e-commerce sector from its inception in 1998. They currently account for over 70% of online shopping in China and delivered annual revenues of $636 million in the 12month period ending June 2009 (case p1-2). Alibaba’s successes are due to multiple factors that have allowed them to create corporate advantage, and thus establish market leadership in China (Case p1). The configuration and coordination of Alibaba’s

Founded just before the turn of the millennium in Hangzhou, China, Alibaba Group has to date become the largest online retail website worldwide in the planet, its total transactions surpassing the sum of both Amazon and eBay’s (Erickson, 2013). The report explains its business and operation model and market strategy, before moving to explore the reasons for Alibaba Group’s success such as its established market share in the large market of Mainland China and its efforts to promote the perception of the reliability and security of e-commerce. Comprising of its future plans in logistics improvement, expansion into developing nations, integration with social networks, venture into mobile

Each and every client of web administrations may be a "player" of eBay. Along these lines, there are an endless number of suppliers and everybody can offer something as a potential supplier for eBay. EBay plan of action gives an administration that brings the purchasers and vendors together. The suppliers don 't have much power aside from on account of the exchange of the top of the line things at the end of the day costly products: land or autos or types of gear. It is clear that both the purchasers and merchants need insurance for their things (Cheng, 2005, p. 159). eBay utilizes PayPal as a part of a request to accommodate smooth and brisk installment of things where the vendors need to get their cash rapidly. Be that as it may, it is entangled to offer costly where the suppliers have more power. Keeping in mind the end goal to encourage the offering costly things, eBay acquired Skype where to side can without much of a stretch import and trade information. The suppliers all in all don 't have much power unless they are managing the top of the line things.

Where this online phenomenon has low entry barrier that attracts potential competitors, eBay‘s position in the dynamic market is definitely threatened. Where consumers are more demanding and has access to latest information, eBay must stay focus and responsive to customers‘ needs and wants, monitoring its business structure closely to ensure sustainability. 2) Over Diversification As mentioned, focus is crucial. John Donahoe made a mistake by overly diversifying its resources and core business. A ‗strategic misfit‘ has occurred, such that eBay has never been able to meaningfully integrate Skype, an online communications service, that failed to produce intended results of integrating eBay‘s core operations and its inability to capture the synergy that justifies the acquisition. As a result, Skype‘s ownership was speculated to be transferred to either Microsoft or Google. Difficulty in finding a long-term solution to increase growth in its core market during a global economic slowdown would eventually leads to a dramatic erosion of eBay‘s core customer base and the company also faces deficiency of innovative capabilities. 3) Incompetency of CEO John Donahoe‘s management capability has been judged as ‗a miserable debacle that is getting worst day by day‘ by one of his employees. A website that allows employees to rate their CEO fell to 22%. Apparently, not even 1 in 3 eBay employees is happy with Donahoe‘s position in eBay as they have doubts on his

As Tencent announced to take 15% stake of JD.com[1], which is the largest online retailer of China, in March 2014, it also implicated the failure of Tencent’s previous e-commerce strategy. In the

The cost for selling is the big cost for this company. The advertisement for Alibaba.com is the important suppliers which are the company’s supply, such as the famous websites, newspapers, and magazines, It is seems to be impossible for the firms to demand higher price special for Alibaba.com. It is because these suppliers are not a union and the price is common based on the market, the supplier bargaining power is stable and limit. The source of power over the company can be the suppliers of raw materials, labor, and services any expertise to the firm. Suppliers may refuse to work with the firm, for standard charge excessively high prices for unique resources but for Alibaba.com.

Following a 220% increase in profits and 800% increase in revenues over six months, eBay Inc. is considering the following courses of action: