The current most powerful online marketplace created in 1995 as a result of a vision that was aided through the seeking of funds from venture capital investors at the world’s technology hub (Silicon Valley) this quest happened to be fruitful with Investors been fairly confused of It been a good Investment. Bay pioneered online trading by developing a web-based community in which buyers and sellers were brought together In an efficient and entertaining format to browse, buy, and sell Items, such as collectibles, automobiles, high-end or premium art items, jewelry, consumer electronics, and a host of practical and miscellaneous teems. In early 2002, the Ebay trading platform was a fully automated, topically arranged, Intuitive, and easy-to-use service that supported an auction format.
Sellers listed Items for sale and buyers bold on Items of Interest In a fixed-price format In which sellers and buyers traded items at a fixed price established by sellers (eBay.
Com, 2010). EBay maintained a worldwide platform that consisted of Ballpoint, Half. Com, eBay International, eBay Motors, eBay Stores, eBay Local Trading, and eBay Live Auctions.
With eBay been the enabler of trade on local, national and international scale around he world and having on its site on any given day millions of items which runs across thousands of categories for sale does nothing more than help eBay’s revenues continuous growth, the sky is seemingly the Limit for the company despite opposition from competitors such as Hallo, Amazon.
Com and its increasing number of imitators. Company structure Sprung up from a simple commerce company on Wall-Street to now been a giant e- commerce conglomerate that has complete change the way online market is perceived eBay Organizational Structure This sort of structure promotes specialization of labor into distinct tasks, encourages the use of managerial and technical skills efficiently, and allows decisions to be made faster. Refer to appendixes for the list of positions held by the names in the organization chart. 1. Company Culture Build on a platform of entrepreneurship which harness the spirit of creativity and innovation in a technical sense that transformed the world of commerce, due to the fact that eBay tries as much as possible to differentiate its business model through the creation of a form of an abode for the coming together of different people to share their personal experiences and also exchange ideas being possess, this sort of immunity has embedded in the spirit a sort of culture that gives back to the community, with eBay making clear its focus on not centered on building cars or others but more towards building communities through the act of commerce which is highly quite usual if been compared to other sites. EBay has been sort of loss with no fixed and systematic way of doing things, gives the chances for spurs of creativity in the minds of the employees and this does provide the challenge for them to work harder and smarter.
With a culture pump up towards the refinement and change of commerce like we know it every passing day, the ultra encourages a manner of training that pushes for the retaining of fun in the working environment and retain the community and family feeling eBay is focus on that drives for its unique and special culture. Basically the organization has an open and cooperative culture with employees not Just working as staff but also with them having a sense of ownership which puts in them the willingness to strive for more towards making the company better and finally as a result of this culture the company exceeds well in achieving business objective. 1. Organizational Change Over the years eBay has ran a very successful business strategy of been the most popular and recognize auction site around the globe through means of its wholly and partly owned subsidiary that takes its business engagement to new heights even with its diversification, for ensuring best business practice and profit optimization in an ever changing dynamic business environment. EBay has been known to be synonymous with nothing higher than internet auctions, going Deck In tell to Its needle Doglegging as a start up cotton sleet to a now gigantic electronic market place acting as host to well over 532, 000 online storefronts al over the world.
Equating its monetary value from its market place puts its revenue to about at 77 billion dollars as at 2007, the company goes on to boast of 83 million active users.
In recent times its growth strategy of expansion and diversification from innovative product development and purchase that has gone to encompass all the activities people perform on the internet, has not really created the desired effect that was intended by top management. All its various diversification moves has led it to stray from its core business objective (Auction), but still not willing to go back an organizational transformation change is on the verge with a change in business model from a fully based auction to the creation of a fixed price model, which has gone on to account for about 40 percent of marketplace revenue.
I Acquisition I I international expansion I lantern Usability I I Expand community services | 1/3 of internet users already registered on eBay I Theft Consumer Confidence Market Leadership eBay been the world’s largest online auction site draws a tremendous amount of strength from its market leadership using as a sort of leverage to continue to grow its dominance in the market place and increase profit, with its capability of attracting a wide audience and catering to the diverse nature of their needs and also been a major dominant player allows it to reduce the number of new entrants wanting to roof into the market. Brand Name With a reputable, well establish and recognizable brand name it helps with the coverage of reasonable amount of grounds in the mind of consumers on a local and international scale as to help promote the business and ensure its profitability, also it been the market leader and the brand name has gone on to been a great sort of differential tool due to its uniqueness.
Business Model The auction trading giant maintains a pretty substantial business model that acts as part of the organizations biggest strengths; this model is seeing in its ability to driver owe cost with it not holding any of their inventories and this still maintained in its initiation of the fix price method, here by removing threat in the area of possible liquidation and increasing gross profit margin while keeping customer acquisition costs too fairly low price. Global Reach Having a global reach second to no other in place does add up to whatever sort of needed strength graved by the organization, with it win the preference of customers on a globe level as opposite to its possible competitors puts its ability to reach customers on a virtual bases around the world on a highly successful leave providing he product they are interested in.
WEAKNESSES Illegal Activities The company still has a weakness when it comes to issues patenting to illegal activities performed on the site with customers complaining about the company doing a very bad Job of controlling this activities, with customers call upon eBay to be more strict when it comes to other registered users who their main aim is to scam others or perform illegal auctions. But hopefully the company would be compensating in a sort of way with its fix pricing technique. Litigation Given the size and position of the company it would suffer great scrutiny when it moms to how it handles the affairs of its business in regards to the market because possible Dustless calicles could De looked at as a monopoly move Ana taking away rite to fair competition, this would translate legal action been taking against the company by its competitors in terms of infringement and other possible charges, if not handle proper could go on to affect its earnings.
Technology Malfunction With technology playing a crucial role in the operation of the organizations business it must try hard to keep the technology malfunction has to be kept to a minimal level as it tends to pop up when it comes to dealing with web technologies so as to help retain and keep a customers happy and satisfied at all levels possible, also keeping hackers out of Papal and eBay accounts. Product Quality and Description The company’s inability of not given full descriptions of merchandise to be sold which could be seeing as a possible factor in the case of the selling of counterfeit and wrongly identified products to customers, while in the case of its fierce competitors the case is reversed.
And also there is the problem of content regulation as to the laity of product been sold on the site, with the only regulation check in place is done after contents are posted and its short coming in this area has lead to facilitation of copyrighted and not for resale items to exchange hands.