Category: Ebay

eBay is a multinational online consumer-to-consumer company based in California, USA. It was started in 1995 by Pierre Omidyar (Collier, 2013). The firm has now been transformed into a multi-billion dollar enterprise with operations spread to more than thirty nations. Its core business is composed of an online shopping and auction website; businesses and individuals purchase and sell a wide range of commodities and services globally. The website has grown to incorporate standard shopping, classified advertisement, event ticket exchange, and money transfers among others. eBay is one of the worlds markets and the largest recycling center. The firm deals in merchandise sales and auctions on the internet. The provision of a global market and timely collection of taxes are at the heart of eBays business model. eBay neither runs stores nor has warehouses. Its revenues originate from advertising and listing charges, the banking system for internet clients, and PayPal (Collier, 2013).

In 1995 Pierre founded AuctionWeb as part of his site. One of Pierres initial sales on the site was a damaged laser point. eBay was run as a hobby until early 1996 when Pierre started charging persons who used his site. Towards the close of 1996, eBay secured a third-party licensing agreement with Electronic Travel Auction. Through the arrangement, the firm obtained the right to transact plane tickets via the Smart market Technology. In January 1997, eBay recorded phenomenal growth; the site registered two million auctions, a shoot from 25000 during the previous year. Towards the close of 1997, AuctionWeb was renamed eBay. On 21^st September 1998, eBay was listed and recorded a tripling effect on its price on the first trading day (Collier, 2013).

The company continued to expand through horizontal and vertical acquisitions. Nevertheless, at the onset of 2006 internet auctions registered a disturbing movement. Owing to the maturation of the internet business, clients grew less willing to wait for days trailing their bids to achieve a good deal. In addition, online buyers were uncomfortable with the toppling of bids at the last minute. With automated software programs, last moment bidding became common. Search engines enabled clients to swiftly locate any commodity at the least price. The convenience of purchasing goods swiftly at a predetermined price gave clients room to save on time. The new development created a performance gap in the companys operations; the future performance of eBay was at stake.

Data analysis at eBay indicated that the firms traditional ploy, online auctions, was getting obsolete. About half of eBays transactions were attributable to fixed prices sales while auction sales constituted less than thirty-three percent compared to seventy-five percent in the previous two years. eBay instituted performance gap analysis to bridge the performance gap. The performance gap analysis process involves the definition of a change programs objectives and system parameters, recognition of problems, symptoms, and the roots of ineffectiveness, identification data collection methods, description of diagnostic models and methods used in online data programs, and application of ordered diagnosis to a firms situations. On identifying the areas in need of improvement, the present performance is assessed and the envied levels of output and quality are set (Brown, 2011, p. 117).

Performance gap analysis provides the information needed for a swift response to changes in the business environment. When data analysis was concluded at eBay, the management resolved to alter its strategy by shifting to fixed-price commodities. eBay resolved to concentrate on easing the process of finding goods for consumers (Brown, 2011, p. 120).

Advantages and Disadvantages of Large Quantities of Data

Gathering large quantities of data is essential in maximizing the performance of eBay. Through large quantities of data, selling prices can be optimized, and improved customer satisfaction is achieved. Large volumes of data empower the seller to identify what customers are looking for, what they like, and what they want to buy. Large-scale data accumulation has facilitated the improvement of customer relationship management. Indeed, big data creates customer intimacy and places the customer at the center of the corporate strategy. The availability of large amounts of data eases the acquisition of more customers. Demand signaling becomes easier; this leads to maximization of profit. Through large data, it is easier to targeted customers through adverts (Russ and Preskill, 2001, p. 180)

Large quantities of data are transformative as they take businesses to places. It is easier to perform analysis when you have big data. Big data enhances opportunity creation in businesses. It also enhances service offering as they are offered in real-time. Products renovation and expansion are realized. Through large data old segments can improve including their functions. New businesses models are developed through the availability of large data quantities and especially financial businesses. Big data enhance strategic decision-making. Mass production is realized and this leads to growth and cost reduction opportunities.

The government is not left behind when it comes to benefiting from large data quantities. Big data has enhanced service improvement, taxpayer funds optimization, improved market governance, and better protection through improved weaponry. Fraud detection and prevention are possible through large quantities of data. It is also possible to conduct risk and portfolio analysis when large quantities of data are gathered.

Though the accumulation of large quantities of data provides leverage to identify patterns, trends, correlations, and relationships, it also presents serious challenges to the clients, users, and their systems. The collection of large amounts of data makes it more challenging to analyze and make meaning out of it. Bulk data collection also inhibits the efficiency of the available infrastructure (Russ and Preskill, 2001, p. 181).

The collection of large amounts of data raises privacy and security issues. Many corporations have acquired a lot of confidential and personal information relating to their clients. Unfortunately, most of them have inadequate security resources to safeguard such information (Russ and Preskill, 2001, p. 193). This exposes their clients to infringement of privacy by fraudsters and dishonest employees and misuse of their personal information.

Indeed, the issue of personal privacy has increasingly become a cause of concern particularly with the boom in internet consumption through e-commerce, blogs, social networking, forums among others aspects (Russ and Preskill, 2001, p. 213). Clients are worried that their data is gathered and put into unethical use likely to cause many troubles. Furthermore, businesses or corporations do not last for eternity; they may merge with others, be taken over, or get out of business. In case of such eventualities, the data collected to provide an understanding of customer trends may leak or be sold to other organizations.

Although the accumulation of large amounts of data is essential to understanding consumer behavior, it cannot be useful by itself. Online data analysis needs a specialist to draw objective inferences out of the computerized output. If the specialist inputs an incorrect or inadequate amount of data, the result will be adversely affected (Russ and Preskill, 2001, p. 181).

References

Brown, R. D., (2011). An Experiential Approach to organizational Development.London: Pearson Education, Limited.

Collier, M., (2013). eBay Business All-in-One For Dummies. New Jersey: Hoboken.

Russ, D., and Preskill, H. (2001). Evaluation in Organizations. New York: Basic Books.

eBay: Some History

Ebay is an online auction service, uniting buying and sellers across the world. It was initially founded in 1995, then known as AuctionWeb; the companys current name, eBay, came about in 1997. Since its first sale, a broken laser pointer (estimated value under a dollar), it quickly grew into a corporation grossing over 10 million in revenue, according to 2018 materials.

eBay: Choosing a cloud computing model

When choosing a cloud computing model that would work best for a service such as eBay, one needs to consider the user base. For eBay, the most important factor is that its users, both buyers and sellers, are likely to use the service intermittently. For many of them, once they have bought or sold the item they wanted, they no longer need the service. Furthermore, as long as the items and payments are being delivered, the users do not know or care who the other person is. Finally, regular users are not likely to possess the computer literacy needed to install, maintain, or run complex software.

The Software-as-a-service (SAAS) model

Software-as-a-Service is a cloud computing model that suits eBays needs outlined in the previous slide. The vendor hosts the proprietary service, which can be accessed by users, often through a web browser. This means it requires no dedicated hardware, installation or additional steps to maintain or update on the users part beyond accessing the service from their existing device  from his or her perspective, it just works. This is the crucial advantage of SaaS compared to other cloud computing models: Grandma can use it to sell her vintage desk lamp with only basic computer knowledge required to operate an email and an accessible web site.

Advantages of SAAS

Deploying the SAAS model brings several advantages to the vendor. As outlined previously, it is accessible and easy to make available to a broad audience. As anyone can access the service without specialized hardware, software, or knowledge, it can be brought to a large audience with little to no limitations. Furthermore, the ease of access is further improved by the fact that since the service works entirely in a web browser, the user does not need to spend any time on installing, updating, or managing it. He or she can stop and resume using it as necessary, even with years in between.

More advantages of SAAS

For the vendor, developing a SAAS model allows to reduce costs, as well. Since the critical part of the software is hosted on the vendors hardware, there is no need to develop separate software for Windows, MacOS, Linux, Android, or maintain implementations for legacy systems. Although a web client still needs to be adapted to the different display configurations like smartphones, tablets, and desktops, this requires less work. Finally, using the SAAS model saves time and money on its support and maintenance for the same reason. Once implemented, updates can be pushed to the service and all of its users simultaneously, preventing edge-case issues affecting only a minority of them.

Disadvantages of SAAS

SAAS is not a perfect model; like any system, it has its disadvantages. However, these disadvantages are either shared by all cloud models, or negligible for eBay. Although connecting to a web service and using a web browser for all interactions with the system can be slow, compared to dedicated software, especially in areas with limited connectivity, an online auction is generally not a service where time is critical. Most importantly, eBays service needs to handle its users personal and financial information, such as addresses and payment details. This makes security breaches especially dangerous as they can cause significant damage. However, this disadvantage is true for any cloud model.

References

eBay. (2020). Our history. Web.

U.S. Securities and Exchange Commission. (2019). eBay, Inc. 2018 Annual Report (Form 10-K). Web.

NIBusiness. (n. d.). Advantages and disadvantages of Software as a Service (SaaS). Web.

eBay is a multinational online consumer-to-consumer company based in California, USA. It was started in 1995 by Pierre Omidyar (Collier, 2013). The firm has now been transformed into a multi-billion dollar enterprise with operations spread to more than thirty nations. Its core business is composed of an online shopping and auction website; businesses and individuals purchase and sell a wide range of commodities and services globally. The website has grown to incorporate standard shopping, classified advertisement, event ticket exchange, and money transfers among others. eBay is one of the worlds markets and the largest recycling center. The firm deals in merchandise sales and auctions on the internet. The provision of a global market and timely collection of taxes are at the heart of eBays business model. eBay neither runs stores nor has warehouses. Its revenues originate from advertising and listing charges, the banking system for internet clients, and PayPal (Collier, 2013).

In 1995 Pierre founded AuctionWeb as part of his site. One of Pierres initial sales on the site was a damaged laser point. eBay was run as a hobby until early 1996 when Pierre started charging persons who used his site. Towards the close of 1996, eBay secured a third-party licensing agreement with Electronic Travel Auction. Through the arrangement, the firm obtained the right to transact plane tickets via the Smart market Technology. In January 1997, eBay recorded phenomenal growth; the site registered two million auctions, a shoot from 25000 during the previous year. Towards the close of 1997, AuctionWeb was renamed eBay. On 21^st September 1998, eBay was listed and recorded a tripling effect on its price on the first trading day (Collier, 2013).

The company continued to expand through horizontal and vertical acquisitions. Nevertheless, at the onset of 2006 internet auctions registered a disturbing movement. Owing to the maturation of the internet business, clients grew less willing to wait for days trailing their bids to achieve a good deal. In addition, online buyers were uncomfortable with the toppling of bids at the last minute. With automated software programs, last moment bidding became common. Search engines enabled clients to swiftly locate any commodity at the least price. The convenience of purchasing goods swiftly at a predetermined price gave clients room to save on time. The new development created a performance gap in the companys operations; the future performance of eBay was at stake.

Data analysis at eBay indicated that the firms traditional ploy, online auctions, was getting obsolete. About half of eBays transactions were attributable to fixed prices sales while auction sales constituted less than thirty-three percent compared to seventy-five percent in the previous two years. eBay instituted performance gap analysis to bridge the performance gap. The performance gap analysis process involves the definition of a change programs objectives and system parameters, recognition of problems, symptoms, and the roots of ineffectiveness, identification data collection methods, description of diagnostic models and methods used in online data programs, and application of ordered diagnosis to a firms situations. On identifying the areas in need of improvement, the present performance is assessed and the envied levels of output and quality are set (Brown, 2011, p. 117).

Performance gap analysis provides the information needed for a swift response to changes in the business environment. When data analysis was concluded at eBay, the management resolved to alter its strategy by shifting to fixed-price commodities. eBay resolved to concentrate on easing the process of finding goods for consumers (Brown, 2011, p. 120).

Advantages and Disadvantages of Large Quantities of Data

Gathering large quantities of data is essential in maximizing the performance of eBay. Through large quantities of data, selling prices can be optimized, and improved customer satisfaction is achieved. Large volumes of data empower the seller to identify what customers are looking for, what they like, and what they want to buy. Large-scale data accumulation has facilitated the improvement of customer relationship management. Indeed, big data creates customer intimacy and places the customer at the center of the corporate strategy. The availability of large amounts of data eases the acquisition of more customers. Demand signaling becomes easier; this leads to maximization of profit. Through large data, it is easier to targeted customers through adverts (Russ and Preskill, 2001, p. 180)

Large quantities of data are transformative as they take businesses to places. It is easier to perform analysis when you have big data. Big data enhances opportunity creation in businesses. It also enhances service offering as they are offered in real-time. Products renovation and expansion are realized. Through large data old segments can improve including their functions. New businesses models are developed through the availability of large data quantities and especially financial businesses. Big data enhance strategic decision-making. Mass production is realized and this leads to growth and cost reduction opportunities.

The government is not left behind when it comes to benefiting from large data quantities. Big data has enhanced service improvement, taxpayer funds optimization, improved market governance, and better protection through improved weaponry. Fraud detection and prevention are possible through large quantities of data. It is also possible to conduct risk and portfolio analysis when large quantities of data are gathered.

Though the accumulation of large quantities of data provides leverage to identify patterns, trends, correlations, and relationships, it also presents serious challenges to the clients, users, and their systems. The collection of large amounts of data makes it more challenging to analyze and make meaning out of it. Bulk data collection also inhibits the efficiency of the available infrastructure (Russ and Preskill, 2001, p. 181).

The collection of large amounts of data raises privacy and security issues. Many corporations have acquired a lot of confidential and personal information relating to their clients. Unfortunately, most of them have inadequate security resources to safeguard such information (Russ and Preskill, 2001, p. 193). This exposes their clients to infringement of privacy by fraudsters and dishonest employees and misuse of their personal information.

Indeed, the issue of personal privacy has increasingly become a cause of concern particularly with the boom in internet consumption through e-commerce, blogs, social networking, forums among others aspects (Russ and Preskill, 2001, p. 213). Clients are worried that their data is gathered and put into unethical use likely to cause many troubles. Furthermore, businesses or corporations do not last for eternity; they may merge with others, be taken over, or get out of business. In case of such eventualities, the data collected to provide an understanding of customer trends may leak or be sold to other organizations.

Although the accumulation of large amounts of data is essential to understanding consumer behavior, it cannot be useful by itself. Online data analysis needs a specialist to draw objective inferences out of the computerized output. If the specialist inputs an incorrect or inadequate amount of data, the result will be adversely affected (Russ and Preskill, 2001, p. 181).

References

Brown, R. D., (2011). An Experiential Approach to organizational Development.London: Pearson Education, Limited.

Collier, M., (2013). eBay Business All-in-One For Dummies. New Jersey: Hoboken.

Russ, D., and Preskill, H. (2001). Evaluation in Organizations. New York: Basic Books.

eBay: Some History

Ebay is an online auction service, uniting buying and sellers across the world. It was initially founded in 1995, then known as AuctionWeb; the companys current name, eBay, came about in 1997. Since its first sale, a broken laser pointer (estimated value under a dollar), it quickly grew into a corporation grossing over 10 million in revenue, according to 2018 materials.

eBay: Choosing a cloud computing model

When choosing a cloud computing model that would work best for a service such as eBay, one needs to consider the user base. For eBay, the most important factor is that its users, both buyers and sellers, are likely to use the service intermittently. For many of them, once they have bought or sold the item they wanted, they no longer need the service. Furthermore, as long as the items and payments are being delivered, the users do not know or care who the other person is. Finally, regular users are not likely to possess the computer literacy needed to install, maintain, or run complex software.

The Software-as-a-service (SAAS) model

Software-as-a-Service is a cloud computing model that suits eBays needs outlined in the previous slide. The vendor hosts the proprietary service, which can be accessed by users, often through a web browser. This means it requires no dedicated hardware, installation or additional steps to maintain or update on the users part beyond accessing the service from their existing device  from his or her perspective, it just works. This is the crucial advantage of SaaS compared to other cloud computing models: Grandma can use it to sell her vintage desk lamp with only basic computer knowledge required to operate an email and an accessible web site.

Advantages of SAAS

Deploying the SAAS model brings several advantages to the vendor. As outlined previously, it is accessible and easy to make available to a broad audience. As anyone can access the service without specialized hardware, software, or knowledge, it can be brought to a large audience with little to no limitations. Furthermore, the ease of access is further improved by the fact that since the service works entirely in a web browser, the user does not need to spend any time on installing, updating, or managing it. He or she can stop and resume using it as necessary, even with years in between.

More advantages of SAAS

For the vendor, developing a SAAS model allows to reduce costs, as well. Since the critical part of the software is hosted on the vendors hardware, there is no need to develop separate software for Windows, MacOS, Linux, Android, or maintain implementations for legacy systems. Although a web client still needs to be adapted to the different display configurations like smartphones, tablets, and desktops, this requires less work. Finally, using the SAAS model saves time and money on its support and maintenance for the same reason. Once implemented, updates can be pushed to the service and all of its users simultaneously, preventing edge-case issues affecting only a minority of them.

Disadvantages of SAAS

SAAS is not a perfect model; like any system, it has its disadvantages. However, these disadvantages are either shared by all cloud models, or negligible for eBay. Although connecting to a web service and using a web browser for all interactions with the system can be slow, compared to dedicated software, especially in areas with limited connectivity, an online auction is generally not a service where time is critical. Most importantly, eBays service needs to handle its users personal and financial information, such as addresses and payment details. This makes security breaches especially dangerous as they can cause significant damage. However, this disadvantage is true for any cloud model.

References

eBay. (2020). Our history. Web.

U.S. Securities and Exchange Commission. (2019). eBay, Inc. 2018 Annual Report (Form 10-K). Web.

NIBusiness. (n. d.). Advantages and disadvantages of Software as a Service (SaaS). Web.

The firm offers an automated, well organized website that gives the customers easy time when transacting businesses online. Those selling items are able to display their goods and every detail including prices on the site. Auctioneers have found it easier to use e-Bay since it helps them perform every step involved during auction as well as providing completed transaction to both the seller and the bidder.

The company offer buyers free browsing time, this provides cheap channel for buyers to access high quality goods while on the other hand sellers are able to access large market with rich customer base (Tang 371- 376; Feng et al 467-503).

The company has protected its customers from fraudulent activities that may occur in the process business transactions. It provides its clients with insurance for the first $200 of every transaction performed through its site. They give the customers opportunity to socialize freely using their site. They offer clients the opportunity to choose one station where to list their inventories (Tang 371- 374)

Connected Activities

The e-Bay company entered into partnership with several other companies which formed the basis of its expansion (Tang 371). The company is currently involved with products that have ready market. There is also involvement in vertical channels that sees the company sell automobiles and other industrial goods boosting the companys revenue. The company partners with outside vendors to offer to clients additional assistance services.

The firm offers education to its users and this help in improving the customers proficiency in online activities. The company has created several sub sites that helps in the sale of some goods like used cars, Kelley Blue Books helps the firm in advertising prices and information regarding commodities on sale (Tang 376-377).

The firm has adopted the use of non-auction methods to sell off products. It also created the program that enables buyers to win auctions as fast as possible. The firm uses a strong brand name which has been one of the driving forces behind their success.

They use the brand name to attract new customers through partnership and advertisement in the internet. It partnered with American Online which led to co-branding of the auction sites; this gave eBay a good base to market its products. It also incorporated its activities in MSN through partnership with Microsoft Corporation.

The firm has further partnered with several service providers to offer enough space and good inventory management for the big businesses to channel their products (Tang 377). The company acquired PayPal to help in improving the level of the non-auction services. This offers the clients maximum security and efficiency on their transactions.

Scope

The firm uses public relations effectively and uses it to provide stories to its customers. It offers its services to United States where it operates local sites in the regional markets. The local sites enable the users to locate products that are sold within their reach; this is more eminent in Los Angeles, Honolulu, Oklahoma and Miami all in the United States. The American Online digital City enables the customers of e-Bay to access city guide services and Newspapers all over the region (Tang 376).

The firm has expanded its services to twenty seven countries, these include; United States, Brazil, Canada, Argentina, Chile, Columbia, Ecuador, Mexico, Uruguay, Venezuela, Austria, European countries, Australia and some countries from the far East. In some countries like Germany it offers services on acquisition of online auction houses.

It offers customers wholesale markets, developed retail options and structural efficiencies (Tang 388). The firm offers sellers free listing services and heavy sales promotion in Japan. The firms stores have been used by big companies as preferred channel to sell their products. The state governments also find it convenient to auction their vehicles through e-Bay (Tang 376-377).

Works Cited

Feng, Froud, Johal, Haslam and Williams. A New Business Model? The Capital Market and the New Economy. Economy and Society, Vol. 30, No. 4, 2001: 467-503

Tang, Scott, e-Bay: growing the Worlds largest online Trading Community. United States. 2003: 371-383

Reasons why eBay have succeeded as an online auction market place

Kotler and Keller assert that the success of eBay was as result of their capability to create new pricing strategies that enabled the bidders or buyers to establish the values of the products they need 411. The ability of the consumers to predetermine the prices created a feeling of control among the consumers. Consumers also had the capability of bargaining the best prices. Moreover, the website enabled the consumers to reach a wide variety of sellers as well as the products to choose (Kotler and Keller 411).

On the other hand, the eBay platform enabled sellers to meet a variety of customers at reduced costs. In fact, eBay established a distinctive online business that attracted both the customers and the auctioning firms. The uniqueness of eBay attracted customers from the competitors resulting in most of the competing firms merging or shutting down (Stevens 141).

The online firm has been successful on the online business because of the knowledge of the needs of the customers. Moreover, eBay had a proper knowledge of its customers and targeted their needs that the competitors did not give much attention (Kotler and Keller 411). In fact, the firm was fast to identify the requirement of the people, do business in second-hand quality goods, and earn cost-effective proceeds.

The company became conscious of the fact that there is need for a platform where auctioneers for second-hand products could meet the buyers (Kotler and Keller 411). The company applied its technological competence to create the required platform that enabled free trade between the auctioneers and the buyers.

The firm has been able to build its credibility among the customers. The credibility the firm established during the first years of operation enabled many potential customers build trust on the firm (Stevens 141). Creditability is critical in the cyberspace where sellers meet potential customers virtually and exchange takes place.

The company builds this credibility through having high quality website that increases the capability of customers and sellers to interact (Stevens 141). Moreover, the company also embraced a well-established payment system including the WorldPay as well as PayPal that increased the customers confidence on the business. In fact, the reputable money transfer firms turned many non-believing customers to the business (Stevens 141).

Essentially, the success of the online auction was attributed to the simplicity of the user interactivity, the ability to offer wide variety of products, increased degree of trust among the customers, enhanced level of development and adaptability, augmented connection capabilities, improved levels of commitment and the ability to adopt the reputable and reliable payment options (Stevens 141).

The ability of the company to attract large volume of traffic also boosted the customers confidence and enabled increased frequency in buying. Moreover, the company developed an easily to use website that enabled increased interactivity. In addition, the companys website has advanced features that allow easy navigation, increased availability, high-usage interaction and clutter-free (Kotler and Keller 411). All these features contributed to the success of the company.

The company has also been able to acquire similar firms that would have offered competition hampering its growth and development. Through these acquisitions, the company has grown from a simple online firm to a large international online firm operating in many countries.

Evaluating the eBay fee structure

The company attains its financial gains through fees it charges on the auctions. According to the company pricing policy, there is a fee charged for each listing while there is a final value charged on the fixed price. In fact, the seller meets all the charges. Taking an example in the case, there is a percentage charged on the $25 of each action. The percentage reduces depending on the amount sold.

A particular percentage is also charged on the remaining amount. For instance, the company will earn $5.69 in an auction that costs $100 dollars to the buyer. In other words, the seller will be charged 8.75% on the first $25 and 3.5% on the remaining $75. Numerically, (2.19 + 3.5) this equals to $5.69.

The fee structure could be improved by lowering the percentage on the fixed charge and increasing the percentage on the remaining amount. In other words, the pricing structure should be flexible to enable the company remain competitive.

Flexibility in the pricing structure should be made in such a way that it still deter the low-priced items auctioneers while at the same time increases the company competitiveness. The online business is currently becoming more competitive. Therefore, online businesses must ensure flexibility in all their operations to gain the competitive advantage. The pricing structure of eBay should not only be flexible but also enhance efficiency.

The future of eBay

The successes that the company has achieved will enable its growth and expansion as well as remain competitive in the market. There are high possibilities that many competing online firms will emerge. However, the company will use its capabilities in terms of technology, finance and market share to remain at the top (Kotler and Keller 411). Moreover, the company is still capable of acquiring the competing firms that will add value to its customers. The future of the company also lies on the way it addresses the challenges it is facing.

The way the company addresses the challenges coming from the sectors such as the real estate markets as well as expensive collectibles will determine its future growth and development (Kotler and Keller 411). In addition, the company is facing challenges arising from regulations, honesty in the part of sellers as well as in the internet security. Besides, tackling these challenges, the company has to offer quality services to the sellers and the buyers. The quality services will enhance the confidence of the users of its site.

Forming partnerships with other online businesses such as Wiki together with social networking sites including Facebook and twitter is another opportunity the company can exploit for its future growth and development (Kotler and Keller 411). Partnership with these online companies will ensure increased market share and be found within the market niche of these online firms.

Moreover, the social sites will ensure continuous popularization of the company. The company must also come with innovative and unique ways of doing business in order to remain relevant in the market.

In addition, the company should make considerable investments to expand in new markets found in various developing and developed countries that lack the eBay presence. Further, the fixed-price options should also be a focus of the company. The fixed price options should provide superior prospects and enable the firm to advance into new markets (Kotler and Keller 411).

Works Cited

Kotler, Philip and K. Keller. Marketing Management. Upper Saddle River, NJ: Pearson Education, 2012. Print.

Stevens, Robert. Marketing Management: Text and Cases. London, UK: Routledge, 2012. Print.

Meg Whitman collaborated with other employees in E-Bay which enabled the firm to achieve positive performance in the market. She hired new employees and made them aware of corporate changes she intended to introduce in the firm. Whitman employed older and more experienced employees with multiple skills, who did not have any background in Information Technology. The group of employees assembled was competent and had the necessary qualities needed to initiate positive change in the organization.

She also hired another team of employees whose were given the responsibility to assure customers that E-Bays financial systems were not susceptible to fraud. This restored consumer confidence in the firm which had been severely eroded. She updated the firms systems by installing advanced programs which helped to protect E-Bay from online fraud. These two instances show that Whitman was willing to improve the internal capacity of E-Bay to make its operations more competitive.

Whitman improved the companys policies to make them responsive to new changes which she had introduced. She learnt new technological skills which demonstrated her willingness to learn and understand problems which the firm was facing at the time. This made it easy for her to understand the firms situation which enabled her to communicate key aspects of her vision to subordinates. She collaborated with technical staff to solve system problems which E-Bay was facing at the time.

Whitman also made E-Bays customers more loyal because they were receiving high quality services from the firms employees. All employees were aware of the importance of customer focus, which Whitman had introduced, as part of the firms market strategy. This encouraged them to interact with clients to understand their issues better. This was helped to elevate the companys position in the market.

Whitman removed obstacles which existed between the firm and its customers. She allowed openness in the way the firm interacted with its clients which made them more loyal to the firm. The Voice of the Customer allowed the firm to identify areas in operations which needed improvements to ensure customers were offered high quality services.

This strengthened E-Bays brand in the market because customers were more confident about the firms reliability and its willingness to satisfy their expectations. Under Whitmans guidance, the firm transitioned from an auction website to a full e-commerce website. This expanded the firms customer segments and led to positive growth in revenues. The firm was in a better position to benefit from a larger revenue base because these approaches enabled it selling more products in the market.

Whitman made customer service a key part of the firms vision. This changed E-Bays corporate culture and the way it conducted its operations in the market. She also changed the mode of purchasing from auction to fixed price which reduced the time products were sold to different customers. This approach helped the firm expand its reach into new markets which helped it grow its revenues. Her guidance helped E-Bay acquire B&B and Kruse International, high profile firms which helped E-Bay change its market strategies.

Whitman encouraged major companies to sell their high priced products through E-Bay by giving them favorable terms. This expanded the amount of goods sold through the e-commerce website and improved its earnings. This helped the firm increase the number of high income clients who purchased products through its website. She improved the reputation of the firm in the market which improved its long term performance in key consumer segments.

Meg Whitman is CEO of eBay, Inc. The particular approaches to developing strategies and her leadership qualities made Whitman one of the most successful CEOs in the market world. Meg Whitmans leadership depends on the effective combination of methods discussed by Kotter as the ways to create the major change within the company. Whitman contributed to the development of eBay, Inc. with references to using the efficient planning and marketing strategies.

Kotter developed the Eight Step Process for Creating Major Change, and Meg Whitman followed all the steps during her integrating process into the companys culture.

Thus, the focus on changing the environment in relation to using the eight-step model can be discussed as more effective in comparison with the usage of the strategies to promote the companys rapid growth. The strategy can be followed successfully when the guiding coalition is created. Whitman demonstrated her abilities as the effective leader and focused on the slow development of the working team.

For example, Meg Whitman used the pattern developed in the company in relation to team-building process previously and improved it basing on the ideas of unity of internal and external community cultures along with encouraging and empowering employees to provide their own opinions and recommendations. Furthermore, Whitman decided to integrate into the companys culture conducting frequent meetings where the team could solve the issues and interact effectively.

To direct the change effort, Whitman proposed the radical vision as the main goal of the company. She stated that it is important to become the worlds largest person-to-person trading company which operates online. From this point, the long-term perspective became focused on the proclaimed vision. To achieve the vision, Whitman developed strategies to work on such issues as the market and brand positioning.

That is why, the frequent meetings helped communicate the new vision of the companys development. Whitman focused on the effective communication between the participants of the team using senior managers as role models to demonstrate the elements of behaviors expected from the other employees.

Empowering broad-based action, Whitman changed the structure of the organization. Whitman started to work in the engineering-driven organization. To achieve the significant progress, it was necessary to change the structure of the organization with references to the increasing number of employees. Thus, the organizations structure was later divided into units or departments.

To generate short-term wins and achieve visible improvements, Whitman concentrated on developing a strategy for the companys investment, on defining the marketing strategy, and on preparing eBay Inc. for IPO during the first weeks of working in the company. The further wins of the company were associated with overcoming the controversial issue of selling firearms by eBay Inc. To respond to the communitys expectations, it was necessary to improve the working strategies.

The further consolidation of gains and production of more changes was based on supporting the principles of the communitys safety and on developing the partnership relations with many companies, including AOL and Butterfield & Butterfield. Thus, the company focused on the ethical principles of selling to contribute to the communitys safety.

Furthermore, the companys promotion was based on the cooperation with AOL and developed advertising strategies. The increase in profits was connected with Butterfield & Butterfields strategy in relation to eBay Inc. Having hired experienced managers and legal councils, Whitman achieved not only short-term goals but also the main vision of the company.

History of eBay and strategic partners

eBay is an online auction company that does the business of listing products on its site to connect both sellers and buyers. The case study majorly enumerates on the history of eBay and clearly explains all the steps that the company has taken in its bid to increase its market growth and internationalize its operation.

Also contained in the essay are the strategic partners and alliances that eBay formed in order to grow. Clarifications are given on some of the factors that might have caused the companys slow growth in Japan and the quality of management of the company among many more (Hsiao, 2011).

eBay strategic decisions

The main management issue here is the strategic decisions the company needs to make for it to widen its market share and customer base. In the case study, we get to know the strategic alliances that the company has entered into. The poor marketing strategy and promotional means that eBay has pursued could be responsible for the failure to penetrate the Japan market.

The robust competition in Japan from already established competitors especially yahoo auction dominance requires brilliant and stronger strategies if the company is to survive. eBay should increase its marketing cost and reduce its listing charges to break through the high switch cost from yahoo auction (Brooke, 1996).

Important data of case study

In the case study, the most important data is the information explaining the reasons for the companys failure to penetrate the japans market. This is because such data can assist the managers to get information necessary in formulation of strategies and course of action the company can exploit. The information will also assist in analysis of trends and support the management assertion and decision.

From the analysis of the case study, the theories that need to be considered are the internationalization theories and the international business location theories.

This theories will improve the quality of decisions of internationalizing operations and determination of the locations which the company should establish its operation (Ahlstrom & Bruton, 2009). Pricing and promotional theories are also essential for the price setting and the advertisement decision to be undertaken by the company (Ahlstrom & Bruton, 2009).

The information pertinent to the management of eBay can be obtained from various reading materials. Text books on strategic management, international marketing and books on management of online services are useful. Other materials that can be used to gather data will be the journal of the companys competitors like yahoo and the periodicals on online business linkages.

Information omitted in the data

Other information that should be included in the case study above is the financial statements of eBay and its strategic partners. Such information will be useful in the determination of the type of relationship that can be developed. Information on the companys mission and vision will also be needed clearly incorporating the core values and other intermediate plans (Deresky, 2008).

Recommendation and conclusion

For the company to strategically establish itself, it needs to embark on heavy marketing strategies that can enable it penetrate the new desired market. Stronger strategic alliances and high quality services should be developed by the company (Elsevier, 2010). The site that is used for marketing must be made user friendly to be accessed by those without much computer knowledge.

eBay can also strategies by increasing their customer loyalty by initiating rewards and incentives for those who list and acquire products on their site. These decisions can only be made feasible by employing management with high qualification.

Reference List

Ahlstrom, D., & Bruton, H. D. (2009). International Management:Strategy and Culture in Emerging World. London: Cengage Learning.

Brooke, M. Z. (1996). International management: a review of strategies and operations. London: Nelson Thornes.

Deresky, H. (2008). International management:Managing across Boarders and Cultures. London: Pearson Prentice Hall.

Elsevier, T. (2010). How Emerging Economies are RESHAPING OUR Undestanding of Global Entrepreneurship. (M. Kotabe, Ed.) Journal of International Management , 16 (4), 321-434. Cahil.

Hsiao, A. (2011, 4 13). Understanding eBay Bidding. Retrieved from About.com: https://www.thebalancesmb.com/understanding-the-ebay-auction-automatic-bidding-system-1140186

As the number of online retailers grows, eBay struggles to preserve its customers and to stay relevant and competitive in the contemporary marketplace. The company chose to pursue a mass marketing strategy, attempting to tailor to both individual sellers and large corporations. Meanwhile, eBay is also losing its distinct brand identity and customer loyalty. The present memo recommends the following actions for the company to survive in the e-commerce business: market segmentation, diversification of complementary services, and community-centered marketing.

Initially, eBay was designed as an online selling platform for small sellers, typically individuals buying and selling collectible items. The company was thus built around the sense of a close-knit community, human interaction, and customer engagement (Frei and Farrar 2). In 2001, however, the company decided to extend its services to large companies by allowing them to sell discounted items on eBay (Frei and Farrar 5).

While this strategy resulted in an immediate short-term growth, eBays marketplace business has been experiencing a steady decline in recent years, as the largest contribution to the companys revenue came from PayPal, now an independent company (Rosoff par. 3). EBays small sellers, dissatisfied with the growing presence of large corporations, turn to other online platforms (Thomas par. 7-8). At the same time, the company is unable to provide the same high quality of services as its competitors, such as Amazon (Soper par. 22). As the company lost sight of its customers, eBays very survival is now threatened.

Nevertheless, it does not mean that the company cannot maintain both groups of sellers  rather, it implies that eBay should recognize the two distinct segments of its suppliers and approach them differently. Thus, the company should pursue a market segmentation strategy that allows it to satisfy the needs of both small sellers and corporations (Wedel and Kamakura 4). As far as individual sellers are concerned, eBay needs to revive its community-centered approach to marketing. The company should provide more favorable conditions to small sellers: for instance, create a separate part on its website dedicated exclusively to small sellers and allow buyers to filter their search results based on the seller. At the same time, eBay should diversify its complementary services, such as payment and delivery.

The outlined strategy will help the company achieve the following goals. A market segmentation strategy would allow eBay to maintain both groups of suppliers while also addressing their specific needs and concerns. It is especially important for the small sellers who would be able to compete on eBay thanks to the favorable conditions created for them, which is their main concern (Frei and Farrar 6).

Community-centered marketing will allow the company to capitalize on its reputation as a customer marketplace, as well as make sure that it is not losing customers to other platforms such as Etsy and Bonanza (Thomas par. 7-8). Abandoning the small seller segment would not be a strategically viable solution as the company would lose its competitive advantage and brand identity (Hassan 104). Diversification and improvement of payment and delivery services will ensure the reliability and predictability of purchases made on eBay. Currently, the company misses out on the holiday shopping as its customers are not sure whether they will get their purchase on time (Soper par. 9).

Thus, the company needs to take the following steps. The IT department needs to incorporate the small-seller division and filters into the website. The external relations department has to contact potential partners to research payment and delivery options. The marketing department needs to create a new marketing strategy built around a sense of community and belonging.

Works Cited

Frei, Frances X., and Hanna Rodriguez-Farrar. eBay (A): The Customer Marketplace. Boston, MA: Harvard Business School, 2005. Print.

Hassan, Seyed M., Amir Jahanshahi Sistani and Satya R. Raju. Top Online Shopping E-companies and their Strength and Weakness (SWOT). Research Journal of Recent Sciences 3.9 (2014): 102-107. Print.

Rosoff, Matt. eBay Just Lost the Part of Its Company That Was Driving All Its Growth. 2015. Web.

Soper, Spencer. Amazon Woos eBays Once-Loyal Merchants with Sales Growth. 2015. Web.

Thomas, Owen. Insurgent Startups Are Attacking eBay from All Sides. 2013. Web.

Wedel, Michel, and Wagner A. Kamakura. Market Segmentation: Conceptual and Methodological Foundations, New York, NY: Springer, 2012. Print.