eBay Part 3 - Question 3 eBay business model is based on...

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Question 3 eBay business model is based on creating and maintaining a person-to-person trading community where buyers and sellers could readily and conveniently exchange goods. eBay’s role is to facilitates online buyer-seller transactions by providing a supportive infrastructure that enable buyers and sellers to come together in an efficient and effective way. eBay’s strength depends not only on the quality of eBay’s infrastructure but also on the quality and quantity of buyers and sellers attracted to the site. eBay’s major strength is that eBay assumed no liability for the sales that took place buyers and seller that significantly reduces the business risk. In addition, the online auction format means that eBay carried zero inventories and could operate a marketplace without the need for a sales force. (Hoskisson, Hitt, & Ireland, 2008). eBay holds alliances with some of the largest companies in the world, that include UPS, America Online, IBM, PayPal, and Walt Disney. These alliances create more opportunities for eBay to advertise and reach potential customers. eBay has also created alliances with companies that helps maintain its customer satisfaction. Tradesafe and I-Escrow have both partnered with eBay to make sure that all customers get what they pay for. In order to remain successful and hold market share in the catalog and mail order business,
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This note was uploaded on 04/08/2011 for the course ECON 101 taught by Professor Econo during the Spring '10 term at Dutchess Community College.

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eBay Part 3 - Question 3 eBay business model is based on...

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