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Submitted by ced8413 on October 2, 2005
Category: Business
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Introduction
EBay is a company that began when there was no model or mold. Online auctioning at the time was almost as new as many to the internet in the mid to late 90's. The creator of EBay created something that had never been done therefore challenges did arise many that still exist today. Creating this online auctioning concept had many opportunities and many challenges to be discussed in this document. Since the company's beginning it has faced these challenges and appeared to make the most of the opportunities to become the premiere and most successful online auctioning site in the world. Taking advantage of its market entry and enhancing technology features has made EBay a household name in the United States and throughout many other countries in which individual access the internet.
Opportunities
In 1995 Pierre Omidyar created a whole new concept utilizing the internet. He took advantage of a new concept that could link individuals in various parts of the world utilizing a fairly new concept. Being the first to enter this market gave EBay a distinct competitive advantage that it still maintains to this date. As of 2005 EBay has become a generic term for online auctioning. EBay does not utilize the same strategy as your typical ecommerce shop. The difference is that EBay has formed a virtual community that has allowed sellers and consumers throughout the world to connect directly to one another. In a since EBay works as a virtual garage sale in which various sellers bring their products and pay a fee for a space to sell goods. Within EBay there are various relationships among sellers and buyers including person to person and business to person. Sellers vary from power sellers who might sell hundreds of products monthly to those who might list one item for sale. EBay sellers consist of online stores and even large businesses wishing to auction off excess inventory. The competitive...
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