Today, eBay has one of the highest traffic sites on the Internet, with about 42 million members all over the world (Avis, 2003). The site has generated more than 1.6 billion page views every month. EBay provides a source of globalizing communication between buyers and sellers from the different marketplace. eBay reported $16 billion in sales profits in 2003 and had a market capitalization of about $25 billion (Hill, 2004). EBay's huge customer base has created a bubble of influence that serves as a magnetic field. Large and small information technology merchants are drawn to eBay because they know eBay has surplus buyers that are attracted to the extensive selection of products. eBay found its successes as an Internet-based organization, where so many other firms have failed, and revolutionizing the business approach to the organizational structure, plans, and design. The company's business model has challenged traditional production strategies through changing what it means to be customer-oriented. The most profoundly exemplified by the impact of the external community on the internal structure of eBay's organization, in turn, redefining internal corporate alignment. eBay's organizational blueprint reflect a strict commitment to maintaining a culture that has been the pillar for the websites successes. The result of such an approach is in the value of shares that transcend beyond reasonable corporate-customer borders by having the external community define internal culture. eBay's company structure and design facilitate the operational decisions in technological developments, production strategy. The executive format of eBay's business is to provide a medium where anybody can buy or sell anything with anyone; this has led eBay to become one of the largest person-to-person web trading community. Even through the organization's business model is facilitated by the auctions provided, recognizing them as nothing more than just a platform enabler. The original background of eBay's operations focuses on providing buyer and sellers with a unique sense of web based community, a single method in operational strategy that guides the building of the website making it user-powered and as such, the internal culture of the community was designed to mirror the external community culture.
eBay SWOT Analysis EBay's greatest strength was that it was the first to commence online customer-to-customer market in 1996. Ever since then EBay has gained an enormous popularity and its brand name has become synonymous with the web-based auctioning industry. EBay's strong brand name and the image is considered its greatest strength over all its competitors. EBay now controls one of the biggest shares of Customer to Customer e-market, with millions of transactions that are being processed every day through its website. EBay.com was rated as the easiest site to navigate by many individual rating sites. The site also is readily available from anywhere around the globe. Sellers and customers of EBay have developed some sense of loyalty and more than twenty million dollars worth of goods and services traded annually on EBay. It is safe to say that this massive online
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- Summer '09
- Ebay.com, EBay model, eBay Introduction, eBay Incorporated