CH 11


  1. Contrast eBay’s original business model with its current business model.

When eBay first started their main goal was to create a platform that allowed people to bid on products. Now days most of the items on ebay are just sold and not bidded on. Back when Ebay first started they created a form that allowed the people to set a limit on there product so it would sell when it went over the price the seller wants. In today's world ebay has went more towards an ecommerce based website where there's not as much bidding.


  1. What are the problems that eBay is currently facing? How is eBay trying to solve these problems?

When eBay first started they were focused towards bids, other companies went for an ecommerce base platform. Now days Ebay has pushed towards what amazon is doing and going more towards an ecommerce base and somewhat copy what amazon has done.


  1. Are the solutions eBay is seeking to implement good solutions? Why or why not? Are there any other solutions that eBay should consider?

What ebay has been doing has helped them evolve and become more user friendly, and made it easier for suppliers and buyers to communicate, Ebay also has increased their sales by having both bids and buys at the same place, consumers can't bid on amazon or other ecommerce sites.


  1. Who are ebay’s top three competitors online, and how will ebay’s new strategy help it compete? Will eBay be providing a differentiated service to customers?

Top three competitors

Amazon, Google, craigslist

Ebay's new strategy will help them, because they are going off of models and platforms that has worked out in the past for them. Ebay is pushing for more like amazon and becoming more of a user friendly.



2. Examine the use of auctions by businesses. Go to any online auction of your choosing and look for outlet auctions or auctions directly from merchants. Research at least three products for sale. What stage in the product life cycle do these products fall into? Is there quantity purchasing requirements? What was the opening bid price? What are the bid increments? What is the auction duration? Analyze why these firms have used the auction channel to sell these goods and prepare a short report on your findings.

I went to ebay and the three products I first looked at was a callaway driver, callaway bag and callaway golf balls. The bag starts a bid at $33 the driver starts its bid at $300 and the golf balls start at $.01. These products are in there final stage. THe bid increments vary from item to item, the golf balls can go for whatever but the drive needs at least $300.