EBay: Analyze eBay's innovative business model and key success factors
Denny Lau
TMAN 613
Professor Shilesky
November 26, 2004
eBay: Analyze eBay's innovative business model and key success factors
From Beanie Babies to automobiles to fine antiques, eBay is by far the most popular one stop shop on the Internet. eBay is an online auctioneer where buyers and sellers can buy or sell almost anything. The online service offered by eBay allows sellers to list items for sale, while buyers will bid on items of interest. Anyone who is interested can browse through the list of items in a fully automated, categorically arranged service that is available 24 hours a day.
eBay, which generates revenue through listing and selling fees and through advertising, boasts some 95 million registered users. Since its incorporation in May 1996 in California and was reincorporated in Delaware in 1998, the online auctioneer is offering new services and expanding into new territory (China, India, South Korea, Spain, Switzerland, and Taiwan) with continual success.
Not to be outdone by eBay, a number of new entrants had entered the online auctioning market - notably uBid, Bidz, and Yahoo! Auction. But none of which has experienced the dramatic level of success that's seen with eBay. In order to better understand how eBay has become the online auctioneering giant that it is today, we will analyze eBay's innovative business model, as well as some of the key success factors of the company.
TMAN 613
Professor Shilesky
November 26, 2004
eBay: Analyze eBay's innovative business model and key success factors
From Beanie Babies to automobiles to fine antiques, eBay is by far the most popular one stop shop on the Internet. eBay is an online auctioneer where buyers and sellers can buy or sell almost anything. The online service offered by eBay allows sellers to list items for sale, while buyers will bid on items of interest. Anyone who is interested can browse through the list of items in a fully automated, categorically arranged service that is available 24 hours a day.
eBay, which generates revenue through listing and selling fees and through advertising, boasts some 95 million registered users. Since its incorporation in May 1996 in California and was reincorporated in Delaware in 1998, the online auctioneer is offering new services and expanding into new territory (China, India, South Korea, Spain, Switzerland, and Taiwan) with continual success.
Not to be outdone by eBay, a number of new entrants had entered the online auctioning market - notably uBid, Bidz, and Yahoo! Auction. But none of which has experienced the dramatic level of success that's seen with eBay. In order to better understand how eBay has become the online auctioneering giant that it is today, we will analyze eBay's innovative business model, as well as some of the key success factors of the company.