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Select a publicly traded U.S. corporation for which you have a common interest - Essay Example

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was first started off by Pierre Omidyar in 1995, as simple marketplace, trading in sales of goods and services, on a person to person online basis. During this time, sellers used to list items for sale, while buyers bid…
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Download file to see previous pages egic business decisions, the company has been able to trade in over 186 million bids, with a sum of over $840 million items being sold with an average of around 800, 000 bids per day. (Schonfeld, 2005)
As a result of internet technology a lot of business sprung up, among them being Electronic commerce. The online business started to pick up in the early 1990s, and by around 2000 the business was fully embraced across the globe. Recently, e-commerce industry has experienced an immense development, mostly due to the growth of internet users across the world. More and more people are shifting their attention towards the new shopping model of doing online shopping. (Schonfeld, 2005)
E-Bay incorporation provides an online platform for sellers and buyers to interact and trade in various categories of goods and services. There are three segments in eBay namely; payments, marketplaces and GSI Commerce.
Since access to e-commerce is universal, and the physical assets to start up this form of business are commercially available, barriers to entry into the industry is quite lower. Now what matters here is the network externalities effect. For instance, it is extremely difficult for a competitor to acquire a bigger share of the users in market where there is relatively huge network externalities. Nonetheless, eBay has managed to secure its position among the top e-commerce websites in the world. However, just like any other industry eBay is subject to competition from companies like Yahoo and Amazon. These companies normally employ tactics such as lowering of price of their services in order to gain competitive advantage. At the moment eBay is focusing its markets abroad. It is now operating in eight of the top ten countries, by e-commerce market size outside the American nation. For example, eBay controls over 80% of e-commerce market in Asia, while it is reported to be gaining users, 45% faster in Europe continent more than in U.S.A. It is also experiencing a 135% growth ...Download file to see next pagesRead More
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