Log In

Currently Viewing: Business Teacher » Business Resources: » Case Study Database » EBay
Case Study

EBay Case Study

A Case Study Documenting Ebay s Success and Challenges.

EBay provides a unique model in which the operation is driven by the consumer an
d seller whilst the operator
(or EBay) simply provides the platform within which the transaction takes place.
As the largest on-line market
place this model would appear to indicate success for the business and with a pr
esence across the globe this can
be described as an international operation. Product diversification within the t
rading areas and the range of price
points results in attracting presence from many demographic groups within the ma
rketing mix.
With minimal operating costs from this model one would assume the levels of reve
nue drive high levels of
profits for this business which would drive forward as a key success factor. How
ever although the revenue is
relatively high the participation of 40% marketing costs results in a low profit
margin participation overall.
Thus while the success of the business depends on the operating system the level
of marketing would appear to
be a challenge for the future in order to drive these costs down and increase th
e profitability levels going
forward.
Key reasons for Ebay s success include: reasons for Ebay s success include:
A key advantage EBay holds over other retailers operating on line is the technol
ogical development and
innovation, through the use of acquisitions EBay are able to challenge the statu
s quo and establish improved
transactional capability. EBay have made strategic acquisitions in media compani
es, for example telecoms
Skype. These acquisitions can be used to improve the service offered currently a
nd grow the sales opportunity
thus generating further income. Through using innovative changes and building cu
stomer trust there is the
opportunity to offset marketing costs through increased sales, the present forma
t makes increased and
incremental sales difficult to achieve because of the communications limitations
however simple changes to
communications can result in this challenge being fulfilled.
EBay are fortunate to enjoy relative dominance in the online retail marketplace
environment. Although several
other organisations have tried to compete the attempts have been unsuccessful an
d whilst there is limited
competition from localised specialist auction houses in some countries this is r
elatively small in terms of
competitive nature given the specifics of the auction sales. However there is th
e opportunity for this market to
be considered by EBay yet some indicate this movement would need to be made in c
onjunction with specialist
partners in order to gain credibility and presence although the movement into sp
ecialist product areas would
succeed in driving profit and sales additional to the current portfolio.
Challenges and outlook for Ebay Include:
Whilst there are challenging times ahead in terms of economic climate EBay for g
eneral consumer sales are in a
prominent position offering the value end of the market the general public will
be looking for, however at the
same time the exchange rate will provide a negative impact for this area of the
business with global exchange
rates reflecting low returns. On the other hand through ventures to improve leve
ls of sales and with new markets
to explore there are methods to offset the potential decreases which the market
may throw at the business.

Related Pages:

Macroeconomic Policies -YMCA

Detailed Analysis Accounting Essay
Martha Stewart Omnimedia Essay
EBAY SWOT ANALYSIS
Starbucks SWOT Analysis
Tagged With: Case Study Communication Ebay exchange rates Income Marketing mark
ting mix
Media Profit Profit Margin Revenue

Printer Friendly Page

Send to a friend:
Type & Press Enter Type & Press Enter
Essay Service:
.
Custom Essay Information
.
Order Your Essay -Now!
.
Instant Price Quote
.
Essay Marking
.
Free Plagiarism Checker
Information:
.
Business Essay Writing Service
.
The Ordering Process
.
Essay Guarantees
.
Terms And Conditions
.
FAQs
.
Fair Use Policy
.
Complaints Policy
Business Teacher:
.
Business Teacher Press
.
Meet The Team
.
Contact Us:
.
About Business Teacher
.
Essay Writing Vacancies
.
Website Feedback
.
In the Community
.
Sitemap
.
Get Verified

How To Write A
.
Business Essay
.
Business Dissertation
.
Business Report
.
Internal Memorandum
Business Resources:
.
Recommended Reading
.
Business Studies Revision
.
An Introduction To Business
.
Free Essays
.
Case Study Database
.
SWOT Analysis Database
Business Operations:
.
SWOT Analysis
.
Business Plans
.
Business Strategy
Accounting & Finance:
.
Sources of Finance
.
Accounting Principles
.
Profit and Loss
.
Cash Flow Management
.
Costs, Revenue and Profit
.
Break Even Analysis
People In Business:
.
Leadership and Motivation
.
Dealing With Customers
.
Employee/Employer Relations
.
Organisational Structures
Markets:
.
Critique: Market Research
.
Theories: Supply & Demand
.
Market Segmentation
.
The Nature of Markets
.
Boston Product Matrix
.
Market Research
.
Market Analysis
Marketing:
.
Marketing Techniques
.
Data Analysis
.
Aims of A Marketing Department
.
Marketing Mix
.
International Marketing
.
Product Life Cycle
.
What is Good Marketing?
Business Environments:
.
Business Constraints
.
Macroeconomic Factors
.
Globalisation / Internationalisation
.
Business in the Community
.
International Competitors
.
Global Factors and Strategy
.
International Trade
.
Multinational Business
.
Government and EU Influences
.
Business Competitors
Free Essays
Looking for a free business essay? Select one using the drop down box:
6Click To Choose an Essay...
Bookmark:
Click this button to add a bookmark to your favourite social bookmarking service
: favourite social bookmarking service:

Subscribe: Email Updates.

Read All Our Guarantees?
Company Registered in England and Wales - Company Number 4964706 - VAT Registrat
ion No: 842417633
XML Sitemap --Business Teacher is a trading name of All Answers Limited - UK Pro
vider of Business Essays
Business essay writing service in the UK --Free plagiarism checker