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Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
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eBay To: Board of Directors From: Management Team Subject: ebay: Facing the Challenge of Global Growth Date: 29 October 2008 Executive Summary: Introduction: The goal is for E-bay to move into more international markets; such as Russia, Denmark, Vietnam, and Turkey. In addition, to focus on fixed-price options and advance opportunities with more sellers and specialty items. Discussed will be the strategic impact on the above identified issues, and the best direction that E-bay should move into for advancement in business growth and operating margins. Industry Analysis: World Wide Internet users are on the rise. People across the world are adapting to using the internet (see Exhibit 1). With a large increase eBay would be able to market across the world. The company would make a considerable investment to expand in countries such as Russia, Denmark, Vietnam, and Turkey. With the current investment in 33 countries, a minute step to invest in more would be a significant gain in market share. The most positive outlook on the international market expansion is that the barrier to entry is relatively low. Competitors will need to enter the market and be able to know how to attract buyers, what will be sold and how much, and how to control their budget. Competitors also lack the knowledge that is developed from years and years of experience of the on-line auction industry. E-bay has the tacit knowledge and experience to continue to grow in the international market. The online auction industry will also give much strength to suppliers. With the decrease in selling costs this will coerce competitors to obtain groundwork to increase the amount of supplier’s and entices new sellers by offering higher profits per sale.In return this will truly benefit E-bay. Competitor Analysis: Amazon, another high competitor, will maintain to deliver more value to the customer in terms of ease, selection, and availability, which in turn will continue its competitive pressure on eBay. EBay to fully win over competition will need to increase the fixed-price options. Yahoo and Amazon both offer products at fixed-prices which bringin a variety of clientele. Some that may be not searching for a bargain, but a particular hard-to-find item. The fixed-price trading is expected to grow to nearly 50% by the year 2010 (see Exhibit 5). This causes for a huge emphasis, because this is a growing market.
Amazon.com is an On-line retailer of, originally, books. The company was established as a micro enterprise in the US in 1994. Since then it has enjoyed rapid expansion in all aspects of its operations, including business turnover, and a spectacular rise in share value since public floatation in 1997. New on-line sites based in Germany and UK and a distribution centre in Amsterdam were established in 1998 to cater for European markets. On August 30, 2000 Amzon.com launched its third site outside the US, Amazon.fr in France. Amazon.com sells only on-line and is essentially an information broker. It holds a relatively small, though increasing, inventory and outsources most aspects of its operations (but not IT). The key to its operation is to offer value added and sophisticated customised services, a continuously expanding catalogue of products in terms of both quantity and range, and deep discounts. Alliances and partnerships with publishers, other on-line retailers and technology providers are therefore strategic. The ambition of the company today is to become a premier general on-line retailer by leveraging on its existing brand and business model. Amazon.com: Business Overview
Key Issues The growing popularity of online retailing is attracting competition from traditional and online multi-retailers such as Wal-Mart and Amazon, which are gaining considerable market shares in many of the product segments included in the specialty retail sector. Currently, the majority of revenue is generated by store sales, but online sales from the stores’ websites are increasing. With the US dollar getting weaker, international sales from these US based websites are increasing too. This creates a significant positive outlook for the large incumbent players but also acts as a significant barrier of entry for new players.
Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage doubled annually, thus, allowing for the expansion of the industry. Google is launched a year later, in 1998, only to become the most used search engine in the world and an essential partner for the online retailers by helping them tailor their websites to customer’s personal preferences and by advertising. After that, more and more people see the opportunity in the growing industry and enter it. By 2001 there are more than 513 million Internet users globally, which calls for action in terms of creating regulations and laws to protect the users and personal property. In 2003, Apple launches iTunes, and provides a platform for low-cost digital downloads. Another major change is the appearance of social media from 2004, which is one of the biggest influencer on the state of the industry. With the launch of iPhone in 2007, this trend strengthens as people get to enjoy the Internet anywhere they want to. From then on, technological advancements have made it extremely easy and fun to shop online, making it ...
This paper is about a company called PayPal. First I will touch the general information about the company, then provide
Krishnamurthy, S. (2004). A comparative analysis of eBay and Amazon [PDF file]. Retrieved from http://faculty.washington.edu/sandeep/d/amazonebay.pdf
...oes not dominate the entire market. The Chinese market is so large that even an e-commerce giant like Alibaba is unable to capture the entire market. Here are some other players who are in the market as well:
in 4/01. Listings on their site began at 500 in 1998 and grew to just
This report will attempt to critically analyse and assess the internal and external factors which effected the strategic decisions made by eBay. These strategic decisions consisted of the acquisitions with Skype and PayPal coupled together with an analysis on why eBay failed may have failed in expanding their online presence in eastern parts on the globe such as China.
Based on these concerns, retailers in the international marketplace have their work cut out for them. But through proper education of consumers, and the ever-expanding growth of the infrastructure in many countries, the future seems to be leaning heavily towards using the Internet for many needs.
eBay needs to transfer its competitive advantage in the online auction industry into the area of
Global Payments Inc is payment-processing service that serves as a middleman between the merchant and the bank to make sure that the transaction goes through. In March of 2012, Global Payments recognized a data breach in its security system after a blogger displayed a hack in the company. Paul Garcia, CEO at Global Payments at the time of the breach reassured the public that the breach was small and that it was intercept internally. A few times after the expansion of the news, three separate card-issuing institutions came forward with proof that Visa and MasterCard was confirming the breach, and that it occurred earlier that year between January 21 and February 25. After investigation, in April, Visa reissued a statement claiming that the
Amazon captured more than half of online sales growth in 2016. “Some analysts view e-commerce as a maturing and well-penetrated market, pointing to Amazon’s high-profile forays into web services and video streaming and eBay’s growth rate, which has stabilized in the 15-20% range” (Hao, 2013).
One of the greatest opportunities for Amazon is an Online Payment System. The online system allows the company to reduce transaction fees and increase ease of use for their customers. Internet sales are increasing at a fast pace. This is a product of increased fuel prices, which make driving to a store less likely, and foreign purchases. This development allows foreign purchases to buy clothing as it becomes more popular abroad. Amazon’s biggest competitors can include retail stores that online stores such as Target, Best Buy, and Walmart among others, these can be considered the most dangerous for them since they have strong market share and can be a direct competitor since they attack the same market. Amazon wish to compete in prices, offering
The Amazon was founded in 1994 by Jeffery Bezos with a sole aim of exploiting the internet to reach more and more customers given the fact that internet was increasing at a rapid phase. However, the company was at first focused on online bookstore but as it grew it invested in other goods such as electrical appliances. Currently, the company is placed in top 100 lists of fortune companies despite the ever growing competition in the online retailing business in the world today. However, the company has never fallen short of ideas, concepts, and strategies aimed at monitoring and developing plans that can put Amazon at the leading place in the global Internet retailing industry. This assignment will attempt to cover in details how Amazon can
seller, leads to an increase in the role of trust in online retailing. Although, the