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EBay - Case Study Example

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The reason why eBay has succeeded is because of its wide reach, effective connection amongst buyers and sellers, and building on the reputation premise. This has turned eBay into a community which connects people at different levels, and thus makes the business smooth. Others…
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eBay Why has eBay succeeded as an online auction marketplace while so many others have failed?  The reason why eBay has succeeded is because of its wide reach, effective connection amongst buyers and sellers, and building on the reputation premise. This has turned eBay into a community which connects people at different levels, and thus makes the business smooth. Others have failed because they have not been unable to address these factors which eBay has given attention to, time and again. The believability factor for the buyers and sellers has largely boosted the online auction marketplace business and given eBay uplift in terms of just about all issues and factors (Anderson & Simester, 2003).
2. Evaluate eBay’s fee structure. Is it optimal or could it be improved? Why? How? 
eBay’s fee structure is based on the principle of charging more for the initial amount and less for additional ones. It is therefore focused more on building big with bulk sales, which indeed exponentially increases on the sales graphs for an organization. The high volume sellers get attracted and even companies that have made it huge within the industry now bank on eBay for their inventory sale (Munir, 2010). As of today, eBay’s fee structure needs no tinkering because it takes care of both the buyers’ and sellers’ needs. Hence incremental improvements can always be brought about but no wholesale changes would as such be required at this stage.
3. What’s next for eBay? How does it continue to grow when it needs both buyers and sellers? Where will this growth come from? 
The next steps for eBay are to acquire renowned businesses that exist in the virtual world and build on the strategy to take over companies for its own betterment and in a desire to increase profits in the long run. The capabilities shall continue to expand in the times to come which would further the cause of eBay and enhance its vision to grow and expand across the board. It continues to grow when there is a need for both the buyers and sellers to get in touch through a collective mindset of growth and advancement whereby eBay benefits just about everyone who comes in contact with it (Reuer, 2009). This growth comes from a collective mesh of connecting with eBay which paves avenues for such participation which in the end increases on the profits for eBay.
Bibliography
Anderson, E. & Simester, D. (2003). Mind Your Pricing Cues. Harvard Business Review, 81:9, September, pp. 96-103
Munir, K. (2010). Letting users into our world: Some organizational implications of user-generated content. Research in the Sociology of Organizations, 29
Reuer, J. (2009). Organizational economics insights from acquisitions research. Advances in Strategic Management, 26 Read More
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