Chinese consumers are as yet unaccustomed to online purchases, the banking system is not as wired, and there are issues with Chinese characters that eBay will need to address. Until Internet security matches Western levels, eBay's ability to penetrate the Chinese market could be inhibited. Information security in China is struggling to keep up with the explosion of the Internet there, including Internet crime (AsiaInfo, 2009).
The competitive environment will also be a challenge for China. Google and other American companies have met with strong competition in China, in part because Chinese consumers prefer Chinese companies and in part because the market is so large that competition is intense. The degree of competitive intensity that develops in the Chinese online auction market will help determine the success of eBay's new venture in the country.
Lastly, a critical component of the external environment is the development of ancillary industries that serve to support eBay's operations. This includes everything from Internet security and Internet service providers to courier services and online banking. Courier...
EBay PayPal Merger Growth in business comes from the joining of synergy to produce savings and necessarily growth, which lead to better profits. EBay is one of the greatest creations of the Internet in buying and selling, and it seems to be a continuously growing operation. The approach to the potential user is extremely friendly; the site gives good quality products which builds up the faith of the customers about the
New methods like the peer-to-peer bump technology and mobile payment systems in offline stores are aimed at the future. EBay has been developing applications for popular devices like the iPad and the iPhone along with specific sections dedicated to clothing, electronics etc. which indicate a positive step towards the future (Donahoe, 2010). Since EBay has its revenues coming mostly from North America and Europe (48% and 41% share respectively),
EBay: A Case Study Analysis Letter to the CEO Dear CEO: The face of ecommerce has been changed by the creation of a global online marketplace. eBay has provided consumers an opportunity to not simply survive, but to thrive. eBay has established a forum for buyers and sellers to untie in and form a community. The online marketplace has established a safe and secure online marketplace where traders can exchange goods and services
EBay is an online auction website, and pioneered this business model. eBay runs its website, in multiple countries, and acts as an intermediary for buyers and sellers. The company earns its revenue by charging for listings and taking a profit on transactions. eBay has 128 million active users around the world. It also owns PayPal, which is a leading online payment site. eBay was founded in 1995 and has remained
Once this occurs, is when the firm will be able to reach out to a bigger audience and increase the number of people who are purchasing products from them. (Ahmed, 2009, pp. 142 -- 149) A second strategy that EBay could utilize is to have customizable products that will reach out to specific demographics of the population. The way that this could occur, is the company could install programs that
Further, eBay's gross merchandise volume - the amount of goods passing through eBay's various marketplace platforms -shrunk by 22% in the last quarter (Buley, 2009). The company had misjudged the potential compatibility between Skype and the Marketplace business (Burrows, 2009). EBay sellers were uninterested in phone chats with customers (Barret, 2009). Although the company has announced that it will spin off Skype via an IPO, next year, the economic environment
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