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Published by: business_mba on Sep 21, 2009
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e-Bay King of the Online Auction
e-Bay is considered as one of the most well known e-business in historyof the Internet. It is a company that offers an online auction that connects itscustomers that are separated by time and space. It covers the traditional face-to-face traditional transaction of buying and selling, therefore making the lives of their customers easier, thus help them save money. After the success of e-Bay,electronic auction had become popular around the world, however, e-Baymaintains its position as the number one successful Internet auction site.e-Bay was born over Labor Day weekend in 1995, when a computer programmer, wrote the code for an auction website that he ran from his homecomputer. Since then, it has become the largest place to buy and sell in theworld, with a huge community of regular people, small businesses and even bigbusinesses from all the continents in the world. In addition to that, the company isalso offering wide varieties of products and services. In 2007, the company ispresent in 39 markets, including the US, with more or less 84 million active usersaround the world, thus it had helped e-Bay to become one of the importantfactors that changes the face of e-commerce. During 2007, the total value of thesold items on the website’s trading platform was already $60 billion. It shows thate-Bay users in the world are trading more than $1,900 worth of goods andservices on the site every second (2008).
The mission of the company is to provide a global trading platform whereanyone can trade anything. Thus as a result, e-Bay is considered as the largestmarketplace for rare, discontinued, collectible and even rare items, no matter what the type or price. The website gives benefits for the customers by providingan open trading platform where the market determines the value of items that arebeing sold. Thus, it had become the cultural barometers of sort, thus provide aview into what objects the consumer wants at any time.
Development and Implementation of Different Strategies
The strategies of e-Bay focus on three important strategic level. In termsof corporate level strategy, the company focuses on diversity which focuses ontheir customers, product range and their business as well as market. Thecompany also focuses on having different strategic business alliances withdifferent organization. In terms of business level strategy, the company focuseson broadening their differentiation strategy by offering vast selection of products,focusing on the eBay community, improvement of eBay website, using the brandimage and reputation of eBay, and the most important thing is the process of global reach.Global expansion is one of the most important strategies of the company,and in order to cope with it, eBay is focusing on different strategic businessanalysis. In 2001, the company announced a strategic alliance with Microsoft inorder for the two large company to jointly expand their global online presence atthe same time improve the e-commerce experience of the customers. The two
company worked together in order to enable the online buyers as well as sellersto seamlessly interact across the multiple websites and use different applicationsanywhere in the world. On the other hand, e-Bay supports the Microsoft
.NETtechnologies and the first website in the world to offer the Microsoft
community-based commerce engine to Web developers as an XML-based web services; thee-Bay marketplace is integrated to the web properties of Microsoft
and e-Bayuses different Microsoft
technologies such as Windows Server and Passport( 2001).The said action was followed when e-Bay enters strategic alliance withthe Zoovy, Inc, one of the leading providers of right-size d e-commerce™solutions. Zoovy integrated its proprietary e-commerce web storefront, on-linepayment processing, auction management, inventory management, sales order processing and the customer relationship management tools through the e-Bay’sDevelopers Program that gave Zoovy an access to the Application ProgrammingInterface tools of e-Bay 2002). Then in order to broaden the company’s offeringby adding the service of Business-to-Consumer, the company had an alliancewith the PFSweb, Inc., a leading provider of business process outsourcingsolutions. It had helped the PFSweb clients to utilize e-Bay as a channel todistribute their products (2002).In addition in 2006, e-Bay announced its strategic alliance with Yahoo!Inc., the largest online media company. Under the said partnership, Yahooexclusively provides online banners as well as graphic advertisement at e-Bays

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