What Is Ebays Business Strategy Information Technology Essay
eBay.Inc, together with its subordinates, provides on-line market places for the sale of goods and services, on-line payment services, and on-line communicating offerings to a diverse community of persons and concerns in the United States and internationally.
The company operates in three sections: eBay Marketplace, Payments, and Communications.
The eBay Marketplaces section provides substructure to enable on-line commercialism in a assortment of formats, including the traditional auction platform ; and its other online platforms, such as Rent.com, Shopping.com and Marktplaats.nl. Its services include trust and safety plans ; feedback forum ; safe seaport plan ; eBay standard purchase protection plan ; client support ; tools and services ; and My eBay, which permits users to have a study of their eBay activity that includes command, merchandising, history balances, favorite classs, and recent feedback, every bit good as About Me, which provides users to make their ain personal place page.
The Payments section delivers a merchandise for little concerns, online merchandisers, and persons that enables them to direct and have payments online. Its services include fall ining the web, confirmation of its PayPal ‘s history holders, retreating money, and trust and safety plans.
The Communications section enables voice over Internet protocol calls between Skype users, every bit good as provides connectivity to traditional fixed-line and nomadic telephones. It offers its package in 23 linguistic communications.
The company besides offers on-line flat lease services and comparing shopping resource service, every bit good as provides an Internet payment platform that allows merchandisers to authorise, procedure, and manage online payments. eBay, Inc. was founded by Pierre M. Omidyar in 1995 and is headquartered in San Jose, California.
What is eBay ‘s concern scheme? How successful has it been? What are the jobs that eBay is presently confronting?
The concern scheme of eBay is to bring forth gross from the fees and committees associated with it ‘s charged to the site to exchange merchandises. The gross is generated by the people who use the eBay site. This position has been supported in the work of Laudon ( 2009, pp.308-309 ) . eBay besides collects gross from direct advertisement every bit good as from assorted service suppliers, such as PayPal that increase the easiness and velocity of eBay minutess ( The wikinvest, 2010 ) .
eBay besides construct on its bing strengths and increase its pick of customized shopping experiences and new monetisation theoretical accounts. Properties such as eBay Express, ProStores, eBay Stores, and Shopping.com give eBay entry into the market for new, in-season merchandises ( The eBay Inc, Annual Report, 2009 ) .
eBay ‘s growing scheme focuses on enlargement in geographics and range and on go oning invention to heighten the assortment and entreaty of merchandises on its sites. This position has been supported in the work of Laudon ( 2009, pp.308-309 ) . eBay is now begun developing tools and services that promote e-commerce anyplace on the web. eBay is besides holding treatment with MySpace to let eBay naming on MySpace pages.
The eBay company ‘s program has been really successful by economic systems of graduated table of eBay due to its big supply of purchasers and Sellerss ( Kevin Dickson, 2009 ) . Having a big figure of active users as they do, they are able to protect themselves from new entrants to the industry. This retains their market portion and provides them with a strong foundation for successful concern.
eBay is really successful, whereby the company has been profitable and had attracted more than 233 million users by 2006 It has operations in 32 states. In 2005, eBay users listed 1.8 billion points in auctions. This caused about $ 50 billion dollars interchanging custodies ( Catherine Holahand 2007 ) . One of the most successful parts of the company is that it is to the full automated. This significantly reduces costs to eBay, maintaining net income high.
Harmonizing to Danny Vogeley, 2005 provinces that, current jobs that eBay confronting now is based on analysts report that gross revenues growing have dropped from 40 per centum yearly to 23 per centum. New users are no longer fall ining the site at the same rate they used to fall in, and there are many of eBay ‘s top Sellerss are n’t concerned in adding voice calls to their gross revenues theoretical accounts. eBay besides has faced is a lifting figure of purchasers who have been defrauded by Sellerss ( Albert, Miriam R, 2002 ) .
Customer service is one more job for eBay and it is largely due to the size of the eBay company. eBay experiences fundamentally two types of clients, Sellerss and purchasers. Often the demand of one client is non the same as the demand of the other ( The eBay Inc, 2010 ) . The following jobs that eBay is presently confronting are resistance by some of its top Sellerss to its operation of a VoIP service Skype, a aggressive menace to the on-line auction market place in Asia by Yahoo, and keeping the honestness and unity of its auction service in the face of enormous growing and enlargement ( Jeffrey S, 2006 ) .
How is eBay seeking to work out these jobs? Are these good solutions? Are at that place any other solutions that eBay should see?
In order eBay to work out these jobs, they are seeking to better its site ‘s user experience to maintain its loyal client base happy. It is cut downing the jumble of its web page design, particularly the place page, which has been described as one of the most confusing and cluttered in the industry. This position has been supported in the work of Laudon ( 2009, pp.308-309 ) . eBay is looking to better merchandise hunt consequence and give purchasers more counsel in happening the merchandise they are looking for without holding to scour through 100s or might be thousand of listing. eBay besides progressively focused on supplying a traditional retail experience or little marketer in order to hold great income as a consequence ( Nikole Cruise, 2009 ) .
The solutions is eBay attempt to include a great enlargement. Growth rates have been hindered by the addition in marketer fees, nevertheless, these loses have been covered by the enlargement into other states. This position has been supported in the work of Laudon ( 2009, pp.308-309 ) . Joseph. T. Sinclair ( 2007, pp.62 ) states that eBay has added excess steps of protection. For illustration, eBay will give excess protection to those purchasers that purchase a vehicle on their sites. eBay has besides entered into a figure of relationships with major rivals such as Yokel! and Google.
Other than that, eBay is banking on PayPal to go the standard payment technique for on-line dealing ( Evan Schwartz, 2001 ) . This has allowed its eBay ‘s clients to purchase and sell goods and receive payments easy. This has increased the user base of eBay ‘s clients. To stay in touch with its clients, eBay has started a plan called Voices which brings purchasers and Sellerss together 10 times a twelvemonth at corporate central office ( Josh Catone, 2008 ) . This plan allows users to speak to direction and discourse what the users like and dislike about eBay and do suggestions.
eBay has tried to construct a channel of communicating between clients ( Charles M. Mayo, 2010 ) . It enables clients to discourse tips on how to sell and buy points. It is besides making a constituent of the web site where people can discourse points that people collect and trade. Using these thoughts can assist to diminish the figure of deceitful minutess. This position has been supported in the work of Laudon ( 2009, pp.308-309 ) . eBay is now besides looking to better merchandise hunt consequence and give purchasers more counsel in happening the merchandises they are looking for without holding to scour through 100s of listing.
The solutions that eBay has come up with to decide assorted jobs seem to be effectual. eBay believes that the most critical undertaking of the company is to maintain clients happy ( Annalee Newitz, 2007 ) . eBay is seeking to keep the merchandising capablenesss of the merchandisers on eBay every bit good as the assurance of its clients.
An excess solution that eBay have to see includes assisting to avoid deceitful purchases ( Tri Bros Broda, 2006 ) . eBay could move as a go-between between the two parties. It could put regulations saying that the buyer must pay the sum of the point to eBay. Once the point has been sent to the buyer, the payment will so be forwarded to the marketer.
What people, organisation, and engineering factors play a function in eBay ‘s response to its jobs?
Peoples factors that play a function in eBay ‘s jobs include the company employs and pull off diverse sorts of people. The company employs about 15,500 employees. Whereby, the employees of the company have different background and each had different occupation experiences in the past. Such is done by the company because they believe that these people can give them a indifferent in organisation ( The eBay Inc, 1998 ) . This makes the company flexible to different sorts of state of affairs to this job.
The following People factor that plays a function in eBay ‘s jobs is the employees at eBay are highly good taken attention of, and this is an country of pride for the company ( Kevin Dickson, 2009 ) . With out a big force of human capital eBay would non be able to work. The focal point on employee satisfaction and attitudes is of import to accomplish the success of the company.
Peoples factors include acknowledging that there are jobs in the company and coming up with the solutions to the jobs. Peoples in eBay has to calculate out how apportion its 8000 full clip workers as eBay purchases new engineerings and plans that will be used on the web site and that will necessitate support ( The eBay Inc, 2010 ) . Peoples will hold to speak to purchasers and Sellerss to find if the company ‘s new services are fulfilling the demands of the users.
Organizational duties factor play a function in the planning procedure because an organisation is responsible for supplying stakeholders with net income or value foremost and first. ( Sarah Ganly, 2010 ) . The benefit to the stakeholder to play a function in the determinations of the planning procedure because the ultimate end of most concerns is to supply value
Organization factors in eBay include holding plenty employees to transport out the alterations to the company. It must be made certain that the organisations concern scheme is customized to fulfill new and emerging demands ( The eBay Inc, 2009 ) . The organisation besides needs to hold adequate fundss to fund the purchase of the new plans and services that it may utilize to react to the jobs ( Catherine Holahan, 2007 ) .
Within the organisation factors eBay has made many progresss to help in their growing. Three runing sections have been designed within the company to manage the normally used market places, along with the add-ons of payments and communications ( Kevin Dickson, 2009 ) . Markets are made up through the usage of eBay auction listings, fixed monetary value listings, every bit good as the add-ons of their other online platforms, Half.com, Rent.com, Shopping.com and StubHub.
In Technology factors include offered new inventions in the technological sector and introduced new constructs with respects to eBay site ( Ina Steiner, 2010 ) . Sing as, engineering quickly changes the company makes certain they are updated to what is go oning and they can set to these alterations. The company makes certain that the merchandises they have are updated with respects to engineering and if new engineerings emerge they can vie with these merchandises.
eBay summarized its on-going site operations and underscored its success in scaling to treat ever-growing planetary demand and turn overing out advanced characteristics and maps while take downing costs ( The eBay Inc, 2001 ) . The company besides described its following coevals package architecture, which is designed to increase productiveness and trading velocity every bit good as allow for greater flexibleness in adding new concerns
Technology factors include the component and plans that will be run by eBay such as PayPal, Half.com, Shopping.com and Skype. EBay will most probably have to besides increase storage infinite to suit the new plans ( Kevin Dickson, 2009 ) . EBay will hold to develop the engineerings and have the plans written that will power eBay ‘s new Ad Context plan that will vie with Google ‘s Ad Sense plan that runs contextual online ads based on keywords that are searched in the web site.
Will eBay be successful in the long tally? Why or why non?
Yes, eBay will be successful in the long tally. eBay is the universes largest on-line auction web site ( The Buzzle Online, 2010 ) . eBay will remain successful every bit long as another e-commerce site does non get down up that offers better security and seller/buyer service. Their concern scheme has already proven to be highly effectual, and they are presently the dominant participant in the on-line market place concern. As the attempt that eBay facing may restrict its hereafter growing and enlargement, they should ever be able to maintain at least their current degrees of concern and resulting net income borders ( The Channel Advisor, 2010 ) .
In the ways to do eBay to successful in long tally, eBay will hold to plan ways of pulling new purchasers to the web site so that minutess can go on to take topographic point ( Jack Goldstein, 2009 ) . eBay has been puting greatly in VOIP ( Voice Over Internet Protocol ) , but at the minute VOIP is non of necessity considered a mainstream service. This position has been supported in the work of Laudon ( 2009, pp.308-309 ) . eBay needs to happen ways of doing this service more gettable non merely to its current users but to people in general. eBay can work with computing machine makers and provide fiscal investing to hold VOIP engineering installed into computing machines.
Beside this, eBay has a big market infinite crossing tonss of states. This maintains a big base for clients to sell their merchandises easy and efficaciously. eBay is seeking to use more interactivity with the purchase of Skype, so that clients and Sellerss can pass on two-way ( Catherine Holahan, 2007 ) . eBay provides a high degree of monetary value transparence, the simpleness to which clients can happen out monetary values in a market ( Philipp Maier, 2005 ) . eBay has recognised that it is more profitable to work with rivals such as Yokel! and Google. The resulting that eBay now shows has generated a beginning of gross.
eBay has ever done really good in concentrating its company ‘s ends and has been fast in catching into chances.
eBay ‘s concern theoretical account demanded that their viewing audiences needed to be many 1000s of consumers, and there should be a balance between purchasers and Sellerss. They actively worked equilibrate the figure of purchasers with the figure of Sellerss. Visualizing success, they designed their Web site to do it easy for many coincident purchasers to happen points to purchase, and for Sellerss to offer points for sale. They provided Sellerss with a safe, dependable agencies to roll up what they were owed, while besides supplying the purchaser with a similar safe, dependable agencies to guarantee that what they bought was merely as the marketer had represented it.
The eBay company should seek to ramify out to other concern chances. The company can seek to hold a personal purchasing and merchandising concern wherein a company has a seeable subdivision that buys and sells different merchandises and services. Customers who have known the company for a long clip will be the first clients of the company in this attempt. eBay gives a whole new significance to the word in-between adult male concern. It does this by supplying excess ordinary tools to Sellerss which, lets the marketer aim their merchandises to the purchasers. It besides provides purchasers with fantastic hunt tools, to acquire to the merchandises they are looking for. eBay has made a really powerful platform for both Sellerss and purchasers by being seamless and unseeable but at the same clip easing Customer to Customer relationship.