Nobody downloaded yet

The value chain and competitive forces model to eBay - Case Study Example

Comments (0) Cite this document
Summary
The researcher of this following essay will make an earnest attempt to apply the value chain and competitive forces model to eBay. The discussion also seeks to answer the question: What people, organization, and technology factors play a role in eBay’s response to its problems?…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.9% of users find it useful
The value chain and competitive forces model to eBay
Read TextPreview

Extract of sample "The value chain and competitive forces model to eBay"

Download file to see previous pages In this present case of eBay value is created through the interplay of its various activities such as primary and support activities that ultimately creates value to eBay. Its primary activities includes it inbound and outbound logistics, marketing and sales and its operation. Working together, the interplay of these activities enable eBay to operate as an online auction venue where sellers can virtually sell listed items with description and photographs in an auction where potential buyers could bid on item for sale on a fixed duration of time. The trust among the online community of eBay to transact online also provides value to the organization as transactions can easily be facilitated without the hesitation of being cheated. The interaction of these various activities in eBay’s value chain enables eBay to make profit of 1% to 5% for every item sold online. EBay’s business model and business strategy revolves around the idea that anything can be virtually and bought and sold on a global basis through its online auction platform. The business model has been successful because more and more people prefer to transact online due to the ease and convenience of consummating a transaction by a click of a mouse. In addition, online auction and shopping online proved to be cheaper due to the almost no overhead of the sellers which reflects on the price being sold. The range of items available on eBay is mind boggling that almost anything can be bought from there. EBay’s success however is a product of a deliberate strategic management. The whole business concept and strategy was for eBay to build an online community through its platform where anyone can transact without the anxiety of being cheated. 3. What are the problems that eBay is currently facing? How is eBay trying to solve these problems?  The most common problems that eBay perpetually is facing is the common problem that besets any technology based companies. System breakdowns are more precocious in eBay because the system disruption disturbs activities which has economic value such purchases and payment that does not go through due to system breakdowns. The incidence of system outages however are minimized as technology improves and with eBay working together with its partners such as PayPal on how to effectively deal system issues during payments. EBay is not also spared from the unscrupulous activities online. It also has its share of being attacked by hackers where its unsuspecting buyers receives bogus emails pretending to come from eBay only to get information from the unsuspecting buyers. There is no known direct action from eBay on how to address such issue as it assumes that its prospective buyers are sophisticated enough to determine which email comes from eBay and which are those who solicits information from the customers. 4. Are these good solutions? Why or why not? Are there any other solutions that eBay should consider?  Working together with PayPal to effectively address system issues during payments is a solution of the payment part of the transaction. The integrity of its systems however has to be made redundant to make sure that the site is up even during outages and breakdowns to ensure that transactions will not in any way be disturbed. With regard to the unscrupulous activities online, eBay can warn its buyers of such unscrupulous acts online that they may become aware of it hence preventing them from being victimized. The non-action on how to deal with ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The value chain and competitive forces model to eBay Case Study”, n.d.)
Retrieved de https://studentshare.org/business/1395565-the-value-chain-and-competitive-forces-model-to-ebay
(The Value Chain and Competitive Forces Model to EBay Case Study)
https://studentshare.org/business/1395565-the-value-chain-and-competitive-forces-model-to-ebay.
“The Value Chain and Competitive Forces Model to EBay Case Study”, n.d. https://studentshare.org/business/1395565-the-value-chain-and-competitive-forces-model-to-ebay.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The value chain and competitive forces model to eBay

Value Chain Model

...?Introduction: The Value Chain Model was a concept framed by Michael Porter. He introduced this model in his book, Competitive Advantage (1885), to explain a range of activities that are common to a wide range of firms. The aim of most of these activities is to offer the customer a certain threshold of value that exceeds the cost of conducting activities and reaps profits for the business. The report will put to light the Value Chain Model of the firm Audible, Inc (www. Audible.com). Audible, Inc is a subsidiary of Amazon, Inc. It pioneers in the provision of digital spoken audio...
5 Pages(1250 words)Research Paper

Porter's Five Forces Model

...of substitute products, Threat of new entrants, Intense rivalry among existing players, Bargaining power of suppliers and Bargaining power of Buyers (Porter’s Five Forces Model, 2009). The figure given in the next page explains Porter’s five forces theory. (Porter’s Five Forces Model, 2009) Even though our organization has a good brand value in the market, it should be noted that our brand value is in hospitality industry alone. Banking is an industry in which huge competition is currently going on and prominent organizations from all over the world are currently competing in this business segment. Since...
5 Pages(1250 words)Essay

Porter's Competitive Forces Model-Information Systems

...? Porter's Competitive Forces Model-Information Systems Porter’s Competitive Forces Model Michael E. Porter’s Five Forces Model is considered as the best model that can be applied in understanding the competitive position of a business in regards to its external business environment. Herein the competitive position of the business is analyzed based on an analysis of the key stakeholders like consumers, suppliers, and also the competitive entities like existing and emerging competitors and the prevalence of substitute products in the...
7 Pages(1750 words)Research Paper

Value Chain

... famous book ‘Competitive Advantage’ in 1985. The analysis of value chain identifies the activities performed by an organization and further relates them with the organization’s competitive strengths. Porter identifies primary and secondary activities as the two major activities essential for value chain analysis. He further grouped the primary activities into five sub-heads including inbound logistics, operations, outbound logistics, marketing and sales and services which are concerned with the value creation as well as delivery of products. Similarly, secondary activities are also grouped into four sub-heads namely, human resource management, technology development, infrastructure and procurement. The secondary activities help... ...
6 Pages(1500 words)Term Paper

Target Corp - Strategic Management - 5 forces - value chain

...to avoid customer inconveniences. 4. a. Target Company is involved in the retail business. It is an upscale discount chain that offers trendy merchandise at affordable prices. Among the various products it stores include fashionable and trendy products, hardware products, cosmetics and pharmaceutical p[products, against a wide range of other products. thus, the business model for Target corporation is retailing. b. Porter’s value chain model determines the profitability level of any particular company. In the value chain model, Porter defined the various components involved in the value...
8 Pages(2000 words)Essay

Value chain

...now contain activities that are tightly integrated and often managed on a day-to-day basis. The globalisation of value chains is motivated by a number of factors. Increase efficiency Continuous growth of competition in domestic and international markets forces firms to become more efficient and lower costs. One way of achieving that goal is to source inputs from more efficient producers, either domestically or internationally, and either within or outside the boundaries of the firm. New emerging markets Emergence of new markets and access to strategic assets that can help tap into foreign knowledge is one of the important motivations of global...
11 Pages(2750 words)Case Study

Porter's Five Forces Model

...Introduction Porter's Five Forces Model is applied in the analysis of industry and corporate strategy. His Five Forces framework utilizes such conceptual approaches as the development of an industrially organized system of economics so that the five forces can be utilized to decide the extent of competition and thus the relative appeal of a market. It's feasible to consider the degree of attractiveness here. In fact it's this particular characteristic that determines the level of industry profits. Thus the opposite is true when unattractive industries incur losses as in the case of those industries that constantly develop characteristics of perfect...
9 Pages(2250 words)Essay

Value chain

...organizations, - meaning that the product is rare – in appearance, in quality or any other feature. In addition, a competitive advantage is also gained when the organization is able to streamline all its activities, its value chain, in such a manner that the most cost effective combination of processes are achieved which deliver better value to the customer. In the case of Google, its core competency of providing ‘lightening fast high quality Internet search’ differentiates it from other search engines. The core competency of Google in Search Engine makes it the best suited service provider for not only direct generic searches but also establishes its credibility for...
2 Pages(500 words)Essay

5 forces model

...Five Forces Model in the Online Auction Industry In the online auction industry, the easily available requisite software important for start-ups together with cheap hosting services and low cost of establishing start-ups enhance the ease of potential entrants entering into the online auction industry. In effect, this poses a threat on eBay’s market share, which has an effect on eBay’s profits. Conversely, the simplicity of establishing start-ups makes the suppliers in the online auction industry possess little bargaining power and play a minimal role in eBay’s strategy. In addition, the online bidding platform used by eBay ensures that...
1 Pages(250 words)Assignment

Global value chain and domestic value chain

...to establish the demands of a particular cultural group in a country that the firm intends to establish a market. Therefore, there is the likelihood of using resources to carry out research before making marketing advances. Example 2: Domestic Value chain in Marketing and Sales The challenge of the diversity of preference among customers facing a manager in a domestic value chain is minimal compared to that of a global value chain (Gereffi, Humphrey & Sturgeon, 2005). However, there is a high feasibility of competition by external investors. Thus, aspects such as pricing strategies are necessary. The most prevalent...
2 Pages(500 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic The value chain and competitive forces model to eBay for FREE!

Contact Us