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Essay / Research Paper Abstract
A 7 page paper that explores some of eBay's strategic issues. This company is the largest and most popular of all auction online sites. This paper considers what they do to continually increase their market share and improve net revenues; how they deal with rigged bidding (sellers who use a shill); their strategies for expansion; and what the future holds for this company in terms of further services. bibliography lists 11 sources.
Page Count:
7 pages (~225 words per page)
File: MM12_PGebay2.rtf
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Unformatted sample text from the term paper:
for expansion; and what the future holds for this company in terms of further services. bibliography lists 11 sources. PGebay2.rtf eBAY - STRATEGIC ISSUES ,
November, 2001 properly! Founded in 1995, eBay Inc., with headquarters in San Jose, California, is the leader in the
online auction market. This company sells more than 8,000 categories of merchandize. It gains its revenue primarily through listing and selling fees and has about 34 million registered users. The
company is moving into offering some new services, such as wireless access and used car auctions. It is also expanding into about 4 other countries, through launching sites, joint ventures
and outright acquisitions. The company owns Butterfields, a traditional auction house as well as the fixed price site, Half.com. Chairman Pierre Omidyar owns 26% of eBay; VP Jeffrey Skoll and
CEO Meg Whitman own about 15% and 4%, respectively. eBay is traded on Nasdaq as eBay (Hoovers, 2001). Since the online auction market is a free market, new companies
can set up their operations whenever they want. But, new entrants will have to entice both sellers and buyers to their auction site. A new company may offer some incentives
to get people to try their site but thus far, that has not worked well against eBay. For instance, there are currently at least two other relatively popular auction sites
- Yahoo!Auction and Amazon.com Auction. eBay continues to outperform both of these companies. Consider - eBay about $12 million worth of merchandise on the average each day; Yahoo!Auction which moves
about $500,000 and Amazon.com auction, which moves about $200,000 per day (Goldsborough, 2000). These are both large corporations but together, they do not sell as much merchandise in a day
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