University of Mary Hardin- Baylor
1. Analyze the marketing environment and the forces shaping eBay’s business over the years. What conclusions can you draw?
The market eBay takes place in is primarily the Internet market. Around 1995 the Internet market was just beginning. “there will be more than 500 million users by 2003 and a rapid increase in e- commerce turnover, rising from US$500 billion worldwide in 2001 to more than US$3 trillion in 2004” (Fichter, 2003) EBay was a pioneer in Internet market until competitors such as Amazon and Wal-Mart began to sell products online as well. “Online marketing is now the fastest-growing form of marketing” (Armstrong, 2013). The difference between eBay and its competitors was that eBay allowed consumers to bid on items while the competitors allowed for consumers to buy products at barging prices and no shipping fee. The buying trend of the consumers was leaving the bidding arena and entering the traditional buy now at a bargain price type of consumerism. This is when eBay decided a change is necessary to continue to strive but they did not just want to strive they wanted to soar so they began to innovate and jump into the creation of mobile apps for their company. EBay did what was necessary to be a “big dog” competitor in their marketing niche, if they continue to be innovative and continue to succeed in being one step ahead of competitors, I have no doubt they will accomplish being the number one ecommerce company.
2. How was the change in the nature of eBay sellers affected the creation of value for buyers?
EBay began its business as an auction company. Therefore they grew selling peoples possessions at low moderation volume. But as time pass and consume behavior changed and new competitors entered the market eBay noticed that their competitors were receiving their goods from whole sellers in bulk. “E-commerce causes structural change of the economy and affects lifestyles and
References: Armstrong, G & Kotler,P (2013). Marketing an Introduction. Upper Saddle River, New Jersey: Pearson. Fichter, K (2003). E-Commerce Sorting Out the Environmental Consequences . retrieved January 23 2014, from engineering.dartmouth.edu Web Site: http://engineering.dartmouth.edu/~d30345d/courses/IE-at-UNG/eCommerceConsequences.pdf