With the advent of the new technologies, the distribution network has been completely reframed. The introduction of the Internet has revolutionized the consumer behavior. Indeed, electronic commerce has flourished over the last 5 years and the companies cannot afford to ignore such a development. A new form of business and trade been a huge success due to the Internet. Established in September 1995, eBay is the "World's Online Marketplace for the sale of goods and services by a diverse community of individuals and businesses?.
[...] Thus, EBay has currently very little competition in the online auction industry. As the company grows, so does its name recognition, making it harder for competition to penetrate its markets. • Amazon Despite seemingly distinct business strategies, Amazon and eBay have gradually been competing more closely. Amazon started an Internet auction business in 1999, copying the system launched by eBay. The company did her best to develop its own system, with agreements reached with retailers for them to sell their products on auction on the site. [...]
[...] The most important and developed one deals with the online payment, which may be the major fear concerning e-commerce. This service is managed by the PayPal system, providing many guarantees and security to the online buyer. Buyers on eBay have 2 options to purchase items: - in auction-style format, consisting in bidding for a product and waiting to see if you have won by proposing the highest auction. In that way, customers can buy products at a lower price than in traditional commerce. [...]
[...] The overall European market is a key place for eBay, highlighted by the success of eBay's top two international websites, eBay Germany and eBay United Kingdom. EBay plans to develop new localized services to reach expansion across eBay's other international websites and for growth around the world. We can notice that each year the company register higher revenue during the last quarter, a convenient period for buying gifts due to the holiday period and Christmas. On average we can say that the company register about 40% of its annual turnover during that quarter. II. The competitive environment A. [...]
[...] More recently though, Amazon has begun a new strategy selling used books, electronics and other goods at fixed-prices from the same Web pages on which it sells brand-new items. Last quarter, Amazon said one out of 10 customer orders in the U.S. were for used goods. • Yahoo Yahoo Inc. is also a global Internet company that offers a comprehensive branded network of properties and services to consumers and businesses worldwide. It is the second eBay's closest competitor. • The others There are some others Internet auction business like Epier or uBid for instance. [...]
[...] EBay is already a tempting online shop-front for selling new products. Cutting more deals with big companies such as IBM or Motorola, in order to develop their offer with high quality goods, and even to become an online bank, could turn eBay even more powerful. But this strategy is not on the edge yet, because eBay's CEO Meg Whitman insists on the fact that the big retailers, which represent about of eBay's business, should be equally treated with individuals. Instead, the present strategy is to concentrate on “making the existent business bigger and better for the community”, providing the best infrastructure for doing business. [...]
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