E-business
Outline of the company
EBay is among the topmost organization in the ecommerce industry. The marketing company facilitates the transacting of business deals via the internet (eBay, 2011). The renowned internet based company allows businesspersons to interact and carry out their various transactions online. The company runs an internet site, eBay, whereby sellers post their commodities, while buyers purchase from various locations across the globe.
Type of E-business model used by eBay
EBay employs an ecommerce model where consumers and sellers interact for transaction purposes (Burton, 2007). The internet-based company allows sellers post their various commodities for customers to choose from a variety of options. On the other hand, the company also allows customers bid for commodities, which often end in favor of the highest bidder.
E-business model and theories learned in this class
The E-business model (ecommerce) aligns with the theories studies in class, in a wider capacity (Goymer, 2004). The company uses creative approaches in conducting various commercial activities. This is in line with the concepts studied in class whereby creativity plays a vital role in attracting customer. Such creativity also helps the company thrive in various possible commercial aspects.
Relevant market influences on eBay
There are several market influences on eBay, which sometimes work in favor or against the company (Singh, & Waddell, 2004). The company’s market consists of customers who bid for commodities online. Therefore, any fluctuation of customer numbers in the market significantly interferes with the bidding process. When the number of customers is high, demand increases, which in turn increases the bids of various commodities. This eventually leads to increased profits. On the other hand, when the number of customers is low, demand increased, which means a decrease in bids for various commodities. This, therefore, implies decreased demand of a commodity.
References
Burton, W. (2007). Burton's legal thesaurus. New York, NY: McGraw-Hill.
eBay. (2011). who we are. eBay.
Retrieved on 25 June 2011 from:
http://www.ebayinc.com/who
Goymer, J. (2004). BTEC national e-business. Oxford, OX: Heinemann
Singh, M. & Waddell, D. (2004). E-business innovation and change management. Hershey, PA:
Idea Group Pub.
