The paper "Internet Marketing - E-Bay " is a good example of a marketing case study. EBay is an e-commerce multinational company located in the United States that offers C2C and B2C sales services through the internet (Sinclair, 2007). The company was founded in 1995 and has grown to become one of the largest e-commerce companies worldwide. Being among the largest e-commerce companies, the objectives of eBay is to allow online shopping through auctions. EBay’ s mission is to discover new communities across the globe built on commerce and founded upon trust and stirred by opportunities (Sinclair, 2007).
The overall goals of the company are to increase its revenues by focussing on acquisition, activation and activity. EBay has physical stores as well as online shopping website where customers buy and sell their products and services. The company generates its profits and revenue through fees for services, final value fee as well as listing products features (Sinclair, 2007). EBay charges about $0.10 to $2 as an installation fee. The final value fee makes up about 10% of the overall sales of the company. The company’ s strategy involves exploring new markets.
The company has expanded in over 30 countries such as China and India (Sinclair, 2007). This paper will highlight the audit of the company and the recommendations for improvement. In the audit, the paper will describe the competitive analysis, market structure, segmentation and target market and the company’ s web presence. In the recommendation part, the paper will offer general web strategy, website analysis and social presence of the company. Competitive Analysis The major competitors of eBay include Yahoo and Amazon Inc. Amazon is said to be the leading e-commerce company in the United States.
Amazon offers a variety of products such as electronics, foodstuff and furniture (Luthge, 2004). The company also produces electronics like TVs and e-book readers. Amazon’ s value proposition includes convenience, speed and choice. The online business of Amazon is extremely convenient as it is easy to find what one is looking for (Luthge, 2004). The company delivers its products fast due to warehouses located in convenient locations. Amazon offers choices for its customers from books to electronics. The company has acquired a large market percentage due to its safe auction through insurance (Luthge, 2004). Yahoo value proposition includes fast, fun and focussed.
The company delivers its products and services fast and has offered a fun environment for the employees (Luthge, 2004). In addition, the company focuses on the needs of the employees and customers which have contributed to its success. Yahoo is the most known brand name that offers services for free of charge. In addition, yahoo offers quality products and services due to its investment in technology that improves its overall performance. Overall, eBay has dominated the online industry followed by Amazon and then Yahoo.
Amazon and eBay hold a larger market share compared to Yahoo. Yahoo has been faced with many challenges gaining grounds (Luthge, 2004). They have failed in their global venture and their operations in foreign markets have been unsuccessful. The strengths, weaknesses, opportunities and threats of eBay compared to the competitors can be summarized in a SWOT Analysis table.