Case Study on e-Bay
The society we are living in today is much closer than it was before, and of the reasons for this is the advent of the internet. People no matter how geographically separated they are can communicate with each other with just a click of a button. The world may be big, but it doesn’t hinder the people from reaching out to others. There are many things that a person can do with the internet. They can view other people through web cams, talk to them online by chatting or voice over the internet. The internet has totally overwhelmed the social lives of people. But it is not just the social aspects which the internet has tackled. It could also tackle about economics and marketing, wherein a person can transact business through the web. One of these internet wonders which ventured in the aspect of online markets is the E-Bay.
History of E-bay
What started as an online flea market is now the world-famous online trading system wherein you can sell or buy virtually anything. This is according to it’s creator, Pierre Omidyar, who didn’t see his website as a revolutionary e-commerce model, the online emporium for anything under the sun. Omidyar was rumored to have started E-bay because his girlfriend collects Pez dispensers. After staying online for a few months, word has spread about E-bay, which instantly earned a following. Internet goers then used it for trading anything that they can trade: antiques, action figures, game cards and more. As it gains popularity, the bigger its customers become. It is not only in the aspect of the number of customers, but also their affiliations. They are not limited only to individual costumers, companies and government organizations soon availed E-bay’s services because of its popularity over the web. Omidyar’s living room became to small to accommodate the needs of the people in the internet.
If E-bay would just be starting today, then the results would really be very different from what it has accomplished now. E-bay is successful because it is one of the pioneers in the online trading business today. If it would just be starting now, then some other companies might have established an auction site already, which would be very difficult to go against with. It is the established name that people trust, not on how interactive or how innovative your website is. In online trading, the number of people that knows about your site matters. Popularity is everything, especially if people have good feedbacks on what your site has to offer, which is in the case of E-bay.
E-bay’s business model is an online auction business model. People go online to sell or trade their stuffs, from simple collections to age-old antiques, and so much more. The interested buyers would then give their best bid for that item, depending on a starting price. Then at the end of auction period, the one with the highest bid gets the item. There is also an option to buy the item immediately, which would cost the buyer higher than the regular bidding price. Payment is made through various ways, including wire transfer, PayPal, and more. With this, the buyer is assured that he will get what he’s paid for.
There has been no strong competitors for E-bay as of recently because they are one of the pioneer dot-com sites. These sites were those who managed to forge their names in the internet industry, just like Yahoo! and Amazon. Many people trust them, as compared to those newly sprang auction sites. They gained the trust because they are the pioneers in the auctioning field, assuring sellers of potential buyers viewing the site,
However, this reign by E-bay is being threatened by its contemporary dot-com sites, which has now ventured into the world of online auction. Both Yahoo! and Amazon have established their auctioning sites which are directly competing with E-bay. Even though E-bay still has the upper hand, they must not go easy on the competition, because these two other sites have also established names in the internet world that would surely overpower E-bay if given a chance.
If I would be developing a strategic development plan for E-bay in the following year, I would concentrate on improving the site’s services to people. This is because of the growing competition in the auctioning business. If I don’t have anything new to offer to these people, then they would surely go to those who have better services than mine. The internet is a field where everyone is a competitor, and these competitors can see you. If they know that the company is faltering with regards to costumer services, then they would do everything to take advantage of the situation. Some aspects that I could concentrate into would be further improving the payment system so as not to let fraud get in the way of transacting a fair business over the internet.