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Essay / Research Paper Abstract
This 3 page paper looks at the business model, considering it using the framework developed by Afuah and Tucci looking at how and why it has been successful and whether the model can be emulated. The bibliography cites 3 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEebaymodel.rtf
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Unformatted sample text from the term paper:
The company has a specific presence in 39 markets and a total of 84 million active users (EBay, 2008). The effectiveness of the business model, where the company acts only
as an intermediary and does not need to hold or sell any stock, can be considered from a number of perspectives, including the value chain as well as the model
of Afuah and Tucci, (2003). The model developed by Afuah and Tucci looks at different components that come together which are based on the activities and capabilities of the firm
and the way that these are managed and delivered. EBay presents good value to the customer, they have expanded aggressively and have a wide number of users, it is
partly this very broad and diverse user based that can be argued as beneficial on an internet auctions site, sellers (who pay eBay fees for selling their goods in the
eBay internet site) want to go to a site where they will get the highest potential target market. The buyers of the goods sold on eBay are attracted cue to
the large number of sellers and the variety of goods offered. Customer value may be in the way that value is created for customers by way of low costs, or
through differentiation, reflecting the competitive advantage model put forward by Porter (1985). EBay does offer a cost effective way of selling goods, but this is not unique, there are now
other companies that have emulated the model, and charge lower prices. This leaves differentiation. EBay was the first major internet auction site, giving it a unique form of differentiation; the
first mover advantage which the company was able to leverage and create a high level of brand awareness. There are also complimentarily aspects to the service, such as with the
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