However, since eBay is oprating in a global context, its resources are on a larger scale. Amazon on the other hand operates in a very different way compared to eBay. It acts mainly as a retailer. Thus it has developped huge competencies in inventory and supply chain management based on information technology. Moreover, it leverages this enourmous IT capabilities by providing cloud computing services to its customers.
1. COMPANY POSITION 1.1. Executive Summary This case study is about the Californian Fortune Global 500 company eBay Inc. It examines the business model of the former named company. As a matter of fact, this report provides an emphasis on financial and strategic analysis based on its external and internal environment analysis and company analysis of resources, competence and culture.
Now rapidly changing in both marketplace, there a not lot of sense that they are stick together and follow the same strategic. Both of them need to come out their own strategic to competing with the new entry competitor and existing competitor. That is strengthen to let them be stronger and improve their services to increase the user or consumer loyalty and become the first place in their own market. By setting the right strategy, the eBay and PayPal can create the sustainable value for their shareholders and provide the new experience to global customer and create the competitive
eBay Inc. – World’s Market Place eBay Inc. , an American multinational company, founded by Pierre Omidyar on September 3, 1995. It evolved as great success story after the dot-com bubble. The company manages a shopping portal in which the business is done through online auctions. A large variety of goods and services are sold and brought all over the world. It is a platform where the world goes to shop, sell and give.
iii) THREE Strengths and THREE Weaknesses of the ebay online websites Nowadays, high-technology and Internet services are around us. We are facing the globalization of the world. Consequently, online marketing company websites has increased day by day such as ebay, Lazada, Amazon and Zalora. Today, we are going to talk about THREE strengths that ebay websites possess which can help its gain competitive advantage among the competitors, differential advantage and delivers high customer value than competitors to attract, retain and grow customers. Strengths : Simple and Easy to understand Ebay websites group all the same kinds of things into a same categories group.
Once they are separating, both of them will have a sharper concentration and superior flexibility to pursue prospect achievement in their relevant worldwide retailer and payment markets. eBay and PayPal able to create sustainable, long-term value for their stockholders and provide prodigious opportunities and experiences for their customer globally via setting the right strategy, structure and operational discipline. This is because eBay and PayPal can be more focus on their own resources and capabilities to generate their particular core competencies and lastly achieve their competitive advantage. Apart from that, separation of eBay and PayPal able to perform better as they can reorganize their market segmentation and targeting in order to place themselves in the right positioning. This can be proved by the improved financial performance of eBay and PayPal after the
Being the world’s leading online retailer, Amazon derives its strengths primarily from a three-pronged strategic thrust on cost leadership, differentiation, and focus. This strategy has resulted in the company reaping the gains from this course of action and has helped its shareholders derive value from the company.Amazon primarily derives its competitive advantage from leveraging IT (Information Technology) and its use of e-Commerce as a scalable and an easy to ramp up platform that ensures that the company is well ahead of its competitors.One of the key strengths of Amazon is that it enjoys top of the mind recall from consumers globally and this recognition has helped it enter new markets, which were hitherto out of bounds for many e-Commerce companies.Using superior logistics and distribution systems, the company has been able to actualize better customer fulfillment and this has resulted in Amazon deriving
Etsy is a company that started out as a company where entrepreneurs had the ability to sell handmade products for consumers. The company was a quick success when it first launched, but with time the company stopped seeing revenue so they decided to make a change. The change the company made was allowing its entrepreneurs to look for factories that could manufacture their products; this caused uproar because the company was leaving its core values. The article mentions the change the online company Etsy has gone through in the last year to a more factory-based production as opposed to the original homemade production, which was made to increase the company’s revenue. Part Two The company Etsy needed to revamp its image to compete with the standards of others companies.
The closest competition, Walmart, does most of their business in an actual store. Amazon dominates e-Commerce, the sole reason why people think the company could be a monopoly. However, The company does not fit the definition of a monopoly. As long as prices do not go up, consumers do not suffer, and competition challenges Amazon, the company does not fall under the category of a monopoly. The fact that no one has seen anything like Amazon before makes people worried; this produces people into believing that the five- hundred and sixty billion dollar company has control of the economy, thus forming a monopoly.
Amazon started their business online, thus gaining every advantage from IT is not new to them. Walmart and their physical stores demand people actually walking in to make a profit. In today’s society more than 3 billion people have access to the internet. Walmart would never be able to build enough physical stores to capture what the internet can. Smart phones and devices give consumers unprecedented access to shopping anywhere in the world.