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Abstract: The alarm clock hasnt even gone off yet, Jeff Bezos,founder and chief executive of global ecommerce behemoth,Amazon, says of the US e-commerce market, about 20 years after it came about in that
country. By that yardstick, the market in India isnt even a peck, considering only 11 per cent of the countrys
population uses the internet. But there are definite signs soon, Indian ecommerce, pegged at 47,349 crore in
2012 (including online travel bookings). According to a study by the Internet & Mobile Association of India and
KPMG, would be a force that would take on physical retail head on, possibly forcing the closure of many brickand-mortar stores.
E commerce in India has grown from 19,249 Crore In 2009 to 47,349 crore in 2012 and expected to grow
62,967 crore in 2013.
According to the study, by the end of this year shows the potential in this space. In India, the category took off
with a deluge of portals, including those focused on travel, media and jobs, at the turn of the century, building
into a bubble that burst systematically in ensuing years. Now, just a handful of serious players are left in this
sector.
Expected to contribute around 4% to GDP by 2020 .Online travel, which grew 30% last financial year, makes
up for 71 % of e-commerce in India. E-tailing segment has increased 59% from last year; share in ecommerce
rose to 16 per cent in 2012 from 10 per cent in 2011. Internet reaches 11% of India's population against 34%
world average. eBay, Inc. is the largest and most popular marketplace on the Internet, allowing members to buy
and sell almost anything. Launched in 1995, about 147 million people now use eBay. An estimated 430,000
people in the United States make all or most of their living by selling on eBay. eBays online payment service,
called PayPal, enables transactions nearly anywhere in the world. eBay proclaims trust between buyers and
sellers as the key to the success of the marketplace. EBay is the The worlds Online Marketplace, which is its
positioning statement, and it means many things about the companys identity. It enables trade on local,
national and international basis, with a diverse and passionate community of individuals and small businesses.
eBay offers an online platform where millions of items are traded each day. The objective at eBay was to to
develop the work ethic and culture of eBay as a fun, open and trusting environment and to keep the organization
focused on the big picture objectives and key priorities.
This case intends to study the click and click business model of eBay, whose competitive advantage lies
in its pure play strategy, a breakthrough from the traditional brick and mortar model, which leads to
Sustainable growth and a competitive edge over the other retailers. eBay is one of the only major Internet "pure
plays" to consistently make a profit from its inception. What is eBay's business model? Why has it been so
successful? eBay makes every effort to conceptualize its users as a community (as opposed to, say
"customers" or "clients"). What is the purpose of this conceptual twist and does eBay gain something by
doing it?
The whole case will based on the above raised questions to achieve excellence in strategic management for
improving the companys strategy, sustaining the companys growth and business performance, and
potentially expanding from online auctions into general etailing, and to become the worlds largest online
mall- Ebay.
Keywords: Online marketplace, retailing, EBay, online auctions ,e-commerce
Introduction:
eBay is The Worlds Online Marketplace. Founded in 1995, eBay created a powerful platform for
the sale of goods and services by a passionate community of individuals and businesses. On any given day, there
are millions of items across thousands of categories for sale on eBay, as well as on Half.com, eBays site
dedicated to fixed price trading. eBay enables trade on a local, national and international basis with customized
sites in markets around the world.
Pierre wanted to name the company Echo Bay. However, another company had registered echobay.com. As a
result, he chose eBay. Pierre had strong opinions about the unfairness of many market arrangements
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