The eBay Economy in 2005


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Case Details:

Case Code : BSTA135
Case Length : 12 Pages
Period : -
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : UK
Industry : -

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

The eBay Company
eBay, originally called AuctionWeb was founded in 1995 by Pierre Omidyar, a software engineer. His aim was to create a simple online system in which a group of people could trade goods. Initially, Omidyar did not have any idea as to what people would want to sell...

The eBay Community

The eBay Community was made up of around 150 million people around the world who bought and sold in the eBay marketplace. These users included individual buyers and sellers, small businesses, and even enterprises...

eBay's Challenge

eBay attempted to ensure that the company did not do anything to incur the wrath of its community. eBay attempted to reinvent itself every day, through intimate knowledge of its clientele needs. However, doubts were being expressed whether such a laissez-faire attitude could sustain eBay's growing economy...

Looking Ahead

eBay's business model was bound to create a conflict of interest between the community and the corporation. In February 2005, eBay increased fees from 17 % for lower-priced items to 45 % for auctions above $500...

Exhibits

Exhibit 1: eBay's Performance in the Stock Market
Exhibit 2
Exhibit 3: The eBay Economy
Exhibit 4: The eBay Community's Five Fundamental Values
Exhibit 5: The Job Ahead

 

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