Why Ebay Is Successful

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INDEX

1- INTRODUCTION 1

Task 1

2- WHY AUCTION ON LINE 2

3- TRADITIONAL AUCTION VS ON-LINE AUCTION 3

3.1 ADVANTAGES AND DISADVANTAGES 4

3.1.1 TRUST SECURITY QUALITY

3.1.2 SOLUTION TO THE PROBLEMS

3.1.3 ADVANTGES

4. INTERNET SEGMENTATION (EBAY) 5

4.1 FROM SEGMENTATION TO COMUNITIES 5

Task 2

5-BUILDING BRANDS IN THE INTERNET 6

5.1 DIFFERENCES BETWEEN REAL AND VIRTUAL BRANDING 6

5.2 C.R.M. 9

5.3 LINKS 9

Task 3

6- RESULTS ES TEST 10

6.1 EBAY STRATEGY 10

6.1.1 HOW SUCCESFULL IT HAS BEEN

6.2 TEN STEPS IN THE NEW MARKETING 11

6.3 RECOMMENDATIONS FOR IMPROVEMENTS 11

6.3.1 DIFFERENTS BRANDS NAMES FOR LUXURY

6.3.2 LINKS WITH AUCTION HOUSES

6.3.3 NETWORK FOCUSED ORIENTATION

6.3.4 MARKET DEVELOPMENT INTO AFRICAN PRODUCTS

6.4 FUTURE OF THE COMPANY 14

7-APPENDIX 12

8- REFERENCES & BIBLIOGRAPHY 23

1-INTRODUCTION

The company that I've chosen is Ebay .com, this company is the biggest auction company on line in the world, recently its trying to expand to Europe; with the take over of Ibazar (the bigest auction business in Europe), and to south America with the co-operation with Mercadolibre.com

Despite of its only six years of live, Ebay is the biggest auction business in the world. But why? Which are the factors that have helped this enterprise to be the number one? What is its strategy? What are their expectations for the future?

These are some of the question that I expect to answer in the next pages.

TASK 1

2- WHY AUCTION ON-LINE

There are many different profits brought by being on the line, this is well known for the company and each year more and more companies, start their business in the net.

The nature of the business is very different, in the net we can find insurance companies, banks, travel agencies, book shops etc… But what is the reason for being on line?

First of all the Internet allows the penetration in the market, that means that with the same product the enterprises can increase their customers in their current market. By the publicity customers services, marketing communications etc.

Secondly we can see how the Internet allows the enterprise to go abroad, thanks to the Internet, the enterprises can commerce everywhere in the world.

Thirdly we find the product development, Internet is helping the creation of new products and services, most of them concentrated in the information industry, as Tom Knight states in Virtual Business magazine "enterprises have to move from selling products to selling know how". And the Internet is one of the best media to sell knowledge.

Fourthly, the Internet allows the diversification; the enterprises can move to new markets and new products.

These are the reasons that explain why most of the enterprises want to be in the Internet, and between them the most important to Ebay is the market development. If there is a factor that makes a big difference between the real auction and the on line, is that the on line is international, while the real auction is usually local. The size of the market is the biggest benefit to Ebay due to the fact that is a pure virtual player

At the beginning of the year Ebay market was mainly USA, but now it has it presence also in Europe and in South America. The more markets they have the most different customers and the more different products, the more purchasing so the more benefits for Ebay.

3- TRADITIONAL AUCTION VS ON LINE AUCTION

Before going inside the issue of real or on-line auction, we should know that the auction is to sell a product between the public and the person who offers more money is the one who is going to get the product.

TRADITIONAL ON-LINE

1 SPECIALISED LUXURY PRODUCTS ALL PRODUCTS

2 LOCALY BASED WORLD WIDE

3 HIGH SOCIETY ALL SOCIAL GROUPS

4 SMALL GROUPS ALL PEOPLE

5 SEEK VALUE SEEK CHEEPEST PRICES

6 PHYSICAL PRODUCT VIRTUAL PRODUCT

7...
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