Mba-Case Study

01. What are the key success factors for eBay?

According to Lynn Reedy, the three key success factors for eBay are:

1) A great idea

2) A great business model without sales force or inventory

3) A management team that ensured eBay was at the right place at the right time.

02. Where is eBay Vulnerable? What should it watch out for?

Case study: EBAY 

I.What are the key success factors for eBay?

a.Pricing revolution

Buyers get the best price for their items

and by letting customers decide the pricethey want to pay for products, eBay had created a pricing revolution.

b.No capital needed 

eBay itself doesn't buy any inventory or own the products on its site. It earns itsmoney by collecting a fee for the auction listing, plus a commission when the sale iscompleted.

c.Thorough knowledge of market and customers’ needs

After noticing that someone was auctioning a real Ferrari in the car segment of eBay, eBay created a new category: used cars. eBay Motors created the followingtrust-building elements in its used car brokerage operations: online reputationratings of buyers and sellers, escrow service for holding funds until the car isdelivered

,

fraud-protection warranty of up to $20,000, network of available third-party inspectors.eBay is positioning itself to be a global giant, part international swap meet, partclearing house for the world's manufacturers and retailers. For instance, it is tryingto get its PayPal electronic payment system established worldwide and adding newcategories and big partners like Sears, Sharper Image, and IBM, all of which unloadexcess inventory over eBay.It offers a fixed-price "buy it now" option to buyers who didn't want to wait for anauction and were willing to pay the price set by the seller.

d.Efficient distribution channel 

Dealers get a bargain: for $40, a dealer can reach a national audience. In contrast,dealers spend upward of $500 to get one local customer to buy one car, accordingto the National Automotive...