Shaye Trenda

ITS 380

Submitted on 2/26/18

Chapter 11 – Social Networks, Auctions, and Portals

C A S E    S T U D Y    Q U E S T I O N S

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

eBay’s original business model was focused on auctions, transactions fees, and advertising fees. Even though eBay’s strategy has changed, they revenue still coming from transactions fees, and advertising fees, but now their products are being sold at a fixed cost.


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

eBay is facing numerous problems including:

·         Competitors. Many other sites provide a similar service, so their market share has been reduced

·         Fraud. Numerous cases of fraudulent buyers

·         Laws and regulations. Some countries have very explicit regulations that have caused some problems to eBay in the past.

In order to solve some of these problems, eBay has adopted some measures that make their transactions safer in order to reduce the number of fraudulent transactions.


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

Yes, they are. eBay has recognized that something was not working as expected, so they started to develop a new strategy. They have been trying to adapt to the new market needs and new technologies.

Other solutions that they should consider can include what other competitors are doing and works. For example: pickup delivery, membership/premium service, fast delivery, etc.


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

eBay’s top three competitors are Amazon, Google, and Craiglist. eBay’s strategy can help it to compete if they know how to take profit of the brand name and its global reach. At the moment, eBay is not providing a differentiated service, but it will be crucial for the company’s future that they find a way to differentiate eBay from its competitors.



3. Visit one for-profit-sponsored and one nonprofit-sponsored social network. Create a presentation to describe and demonstrate the offering at each site. What organizational objectives is each pursuing? How is for the profit company using community-building technology as a customer relations management tool?

Profit sponsored social network is the type of social network whose primary objective is to make the profit and widen the market for its products while making connections with their clients and customers. This includes systems such as online jobs and online Fantasy Stock Exchange.

Online jobs are the jobs posted on the social networks by several individuals or companies to be done by the interested persons at a pay. When the job is posted on the social network, an interested person can enter into the contract with the company and then assigned to work. Several innovators are also creating social network pages then advertising the services they can offer at given prices and their products.

The profit company is using the several social network such as Facebook and Twitter to advertise their products to their target customers in the community. The profit company is also using community-building technology in meeting different community needs such providing cheap and fast methods of payment such as PayPal to transfer funds from one place to another.

Nonprofit sponsored social networks are the type system whose primary objective is to tie individuals, reinforce interactions and informing them about the up-to-date matters.

Facebook is the largest social network with large number of users in whole world, Facebook allows people interact from different places through messaging, poking and chatting, people are also able to update their status on the Facebook concerning their lives, upload photos and also share photos and contacts through their profile.


4. Visit one of the social networks listed in Table11.1 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 chose to compare Facebook to Instagram


-          Both social networks have a feed

-          Both social networks have “friend options”

-          Both social networks have search, direct message, and “like” feature

-          Both social networks allow the user to share photos and videos

-          Both include private profile options



-          Instagram only allows you to post something if you are including a picture; it is not possible to post a text message

-          Instagram calls friends followers, and someone can follow you without the necessity of following them back

-          Instagram does not have the option “share”

-          Instagram is mostly used on mobile devices and it is limited when using it on computer devices.

-          Facebook has way more activity than Instagram.