Undral Naran

ITS 380 Global E- Commerce

Chapter 11


Case Study Questions


1.           Contrast eBayís original business model with its current business model.

EBayís first business model was auctions. However as time passed, people started to more likely buy goods at fixed price rather than racing for an auction price. This changed eBayís auctioning model to basic e-commerce model. But eBayís still kept little portion of its auctioning until this day. Also their product offering didnít have restriction; if the product is not illegal, it is most likely can be sold on eBay. But after the change, eBay basically went from online flea market to online outlet mall where retailers sell out of season, refurbished and overstocked goods while individuals sell their own goods.


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

It has been a victim of hacking attach in 2014 of its customer information. Right after the breach, eBay sales were dropped 5.4% in only 10 days. EBayís visibility on Google is getting lower.


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 hopes standardizing their listing can help their search engine optimization and appear of Google better and more. They also started offering eBay Now in bigger cities to do same day shipping to compete with Amazonís speed of shipping which is their strongest attraction to the customers.



4.           Who are eBayís top competitors online, and how will eBayís strategy help it com- pete?

Amazon is definitely the biggest competitor for eBay. EBayís multiplatform visibility is helping them a lot. EBay is accessible from many different devices like android phone and iPhones. They are especially focusing on their mobile app development since m- commerce is expanding greatly.



††††††††† Projects


1.   Examine the use of auctions by businesses. Go to any auction site 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? Are 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 visited GovDeals. The products were all used. Visitors can see all the information about inspection and history. Deals were usually posted for 2 weeks. Each product were listed individually or as a package. Buyers has to buy everything on the page of bidding.


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


I visited LinkedIn. Linked in is Facebook of professionals. The news feed consists of job postings, current news and company information. People update their profiles with their academic and professional information rather than sharing personal pictures and personal messages. I would prefer using both, because they both have different purposes.