Kim Mattson

ITS 380

CH 11


Case Study

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

eBay’s original business model’s focus was on auctions.  eBay’s current business model is more focused on fixed price goods.  Its revenues were dependent on millions of small sellers. Then it converted into a more professional seller environment where small retailers would buy goods, and then flip it on eBay for a profit. Then in 2009, eBay’s revenues fizzled, and Amazon’s retail model became popular. The current business model is like Amazon’s, dependent more on professional retailers and large online stores to sell products at fixed prices.

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

The main problem is driving revenue growth. eBay’s revenue growth had ceased partially because the small retail eBay users couldn’t create the volume of sales eBay needed. Because of this, eBay moved to a larger scale and professional large volume retailers. eBay has had to overhaul its identity as an auction site and create one of an online retailer, like Amazon.

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

eBay must meet competition from Amazon and Walmart. They have restructured their catalog to be more formatted, enabling them to analyze the data and obtain insight into retail trends and profile consumers with the help of SalesPredict.  eBay’s insight to the rise of the mobile platform has proven to be beneficial to the company. They are leading the way with mobile technologies like biometric touch identification support and virtual reality of seats for tickets sold on StubHub.

4.        Who are eBay’s top competitors online, and how will eBay’s strategy help it compete?

eBay’s top online competitors are Amazon, Walmart, and Alibaba. eBays’s mobile acumen has kept them in the game while it tries to establish itself again. eBay is a trusted and well-known brand name, a bonus for the company while it is regaining its position in the e-commerce world.


1.       Find two examples of an affinity portal and two examples of a focused-content portal. Prepare a presentation explaining why each of your examples should be categorized as an affinity portal or focus-content portal. For each example, surf the site and describe the services each site provides. Try to determine what revenue model each of your examples is using and, if possible, how many members or registered visitors the site has attracted.

Facebook is an affinity portal. It is a site for people to join and connect with others they identify with. Facebook’s main revenue source is advertising, earning the company over $40 billion dollars in 2017. Services offered by Facebook are Messenger, Paper, Page Manager, Audience Insights is an example of a focused-content portal. It is a free site dedicated to gamers and all information related to gaming. Members can access previews of new games, reviews, news, online forum, and utilize their game specific search engine. The site’s revenue model is an advertising mix.  

4.       Visit one of the social networks listed in Table 11.1 and compares it to Facebook. In what ways is it similar to Facebook, and in what ways is it different? Which do you prefer and why?

Tagged, like Facebook, has a newsfeed, customized profile, similar layout, and games. While the page layout is similar, it is not as streamlined as Facebook’s. It differs from Facebook by   using algorithms to make connections for people in three categories: common interests, games, and dating. It emphasizes making new connections instead of a collective of preexisting ones.   Tagged offers specific chat rooms instead of the ability to only chat with a current friend. There is also a filter at the top of the newsfeed where you can select certain age range, gender, country, and distance from you. While I don’t care for Facebook, I would rather utilize it than Tagged. To view the site for comparison, I had to open an account. The people on there, while not within my region, were posting content very indecorous. If that is a sample of the possible category of people I could meet, I’d rather be alone.