Evaluation of Business Model of E-Bay and Dell Companies - Essay Example

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"Evaluation of Business Model of E-Bay and Dell Companies" paper evaluates E-Bay.com which uses a combinational business model of portal and auction to attract customers and considers Dell.com which uses a storefront business model to sell its products for getting various products to the customers…

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Evaluation of Business Model of E-Bay and Dell Companies

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Subject: Miscellaneous
Type: Essay
Level: Ph.D.
Pages: 1 (250 words)
Downloads: 2
Author: mhagenes

Extract of sample "Evaluation of Business Model of E-Bay and Dell Companies"

This offers a fixed brand price for the products which makes it acceptable to customers worldwide. Dell was an enthusiastic convert to the Internet, creating its first website in 1994 and moving many of its website activities to the Internet ahead of its competitors. (Kraemer & Dedrick, 2001) The company witnessed that its direct model gave it a leader in selling online.

Unlike indirleadervendors, such as Apple, IBM, HP, and Compaq, Dell did not have to worry about channel conflict with resellers and distributors when it began selling online. Grandmas Treats is suitable for taking up the storefront model for selling its products, similar to Dell.com. The reasons would be as follows: Maintenance of its product's price and brand competition for its products sale would be of no use as the products incur a fixed price model which is not likely to change illicit means of raising the price of the products must be avoided for the products.

The extra software usage for the auction model would be expensiveThe concept of dynamic pricing would be is not possible with the site-type model selected as in storefront and portal model price variations are not witnessed and the selected brand may have discounts but no variations in price. It would save the customers from Unnecessary price hikes and Crude competition for the products. Quality is sacrificed at the cost of pricing. An impression to get it at pricing and not to buy at the branded price. The company would incur various costs.

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