Economies of Scale
Open Seller Platform
Non-Business Related Acquisitions
Moving away from auctions being the primary business
Department Store Failures
Brand name - Strong brand name helps to increase margins by charging premium prices for goods, because customers perceive a higher standard of quality from companies with strong brands. The strong brand name eBay has obtained has increased the number of customers they draw into their business because of the common name they have throughout consumers. Economies of scale - eBay has economies due to its large supply of buyers and sellers. Having a large number of active users as they do, they are able to protect themselves from new entrants to the industry. This retains their market share and provides them with a strong foundation for successful business. Internet Sales – Internet sales are increasing at a fast pace. This has come to benefit eBay and the industry as a whole because of the recent advancement to using technological based systems to run the businesses. The continued growth of the internet and also its expected growth into the future greatly supports eBay’s business and success. Open Seller Platform - The ability to allow businesses to sell their products on a website enhances liquidity for such products, gives better options to users and allows the platform provider to increase the number of goods they have for sale, which increases their revenue and margins. When buyers can get new or used products from one place, the customer relationships between the buy and the preferred platform will increase. Low-Cost Product – Low cost provides significant barriers to entry if that company is the only low cost product among many other...
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