Ebay value chain analysis. eBay Value Chain childhealthpolicy.vumc.org 2022-10-22
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Ebay is a multinational e-commerce company that was founded in 1995 by Pierre Omidyar. It is a platform that allows individuals and businesses to buy and sell a wide variety of goods and services globally. Over the years, Ebay has grown to become one of the largest e-commerce companies in the world, with millions of active users and billions of dollars in annual revenue.
In order to understand the value that Ebay creates for its customers, it is useful to analyze the company's value chain. The value chain is a framework that identifies the different activities that a company performs in order to create value for its customers. According to Michael Porter, the value chain consists of two main categories: primary activities and support activities.
Primary activities are those activities that are directly related to the creation, production, and distribution of a company's products or services. For Ebay, the primary activities include:
Inbound logistics: This refers to the process of receiving, storing, and distributing the goods that are sold on the Ebay platform. This includes managing the inventory of goods, as well as coordinating with sellers and logistics partners to ensure that the goods are delivered to buyers in a timely and cost-effective manner.
Operations: This refers to the process of preparing and packaging the goods for sale on the Ebay platform. This includes quality control measures to ensure that the goods meet the standards set by the company, as well as processing orders and managing payment and shipping details.
Outbound logistics: This refers to the process of delivering the goods to buyers. This includes coordinating with logistics partners to ensure that the goods are shipped to the correct address and in a timely manner.
Marketing and sales: This refers to the process of promoting the goods and services offered on the Ebay platform and converting potential buyers into actual buyers. This includes advertising, public relations, and sales efforts.
Customer service: This refers to the process of providing support to customers before, during, and after a sale. This includes handling customer inquiries, complaints, and returns.
Support activities are those activities that support the primary activities and help to create a competitive advantage for the company. For Ebay, the support activities include:
Procurement: This refers to the process of sourcing raw materials and other inputs needed for the production of goods and services. For Ebay, this includes negotiating with suppliers and managing the supply chain.
Technology development: This refers to the process of developing and maintaining the technological infrastructure that powers the Ebay platform. This includes developing and maintaining the website and mobile app, as well as the systems that support the various processes involved in the value chain.
Human resources management: This refers to the process of recruiting, training, and retaining employees. Ebay has a large and diverse workforce, and effective human resources management is crucial to the success of the company.
Firm infrastructure: This refers to the various support functions that are necessary for the smooth operation of the company, such as finance, legal, and administrative support.
By analyzing the value chain, it is clear that Ebay creates value for its customers through a combination of primary and support activities. The company's inbound and outbound logistics activities ensure that goods are delivered to buyers in a timely and cost-effective manner, while its operations and customer service activities help to ensure the quality and satisfaction of the goods and services offered on the platform. The marketing and sales activities help to promote the goods and services offered on the platform and convert potential buyers into actual buyers, while the technology development and human resources management activities support the smooth operation of the platform. Overall, Ebay's value chain helps to
The value chain and competitive forces model to eBay Case Study
However, DHL must avoid making misleading promises about product characteristics that the production department cannot provide. . Similarly, its auction-based sales system is an inspiration for many modern-day platforms. Artificial intelligence and other emerging technologies to improve trust in e-commerce 2. The company operates an online website, facilitating millions of transactions each year. The main use or objective of the business is to make sure that the tangible goods which are sold on the website can be traded in a safe and a secure manner without inconvenience to the consumers. The company have a very less number of competitors in the market but the kind of value chain of the company has set the company apart from its competitors Cost-Factor: The virtual value chain of the company reduces the cost of the company as the company does not have to itself ship the goods to the buyers.
Value Chain Analysis : Conceptual Framework and Simulation Experiments by Stefan Koch, Kateryna Gerwin, Joachim Reese and Marco Waage (2016, Trade Paperback) for sale online
There are five primary activities that companies have. In the beginning of the report, there is a detailed explanation of the value chain analysis. Primary Activities: Inbound Logistic: The main activity regarding the inbound logistics would include warehousing and to receive the raw material, and also it include the distribution and also manufacturing as and when it is required. The four generic support activities are — Firm Infrastructure Firm infrastructure support activities at Ebay Person consists activities such as — general management, planning, legal services, finance and accounting and quality management. Reports offered by research-methodology.
The addition made by them to this value chain gives them their share of the profit thus bringing them income prosperity. Company reports are produced to assist with academic works of business students in particular. Similarly, its primary Chinese market has also seen an increase in imported products. The firm can also achieve its cost-cutting goals by comparing recruiting and training expenses to their respective returns. Moreover, the company encourages its sellers to offer superior customer services to buyers in order to maintain the positive reputation of the brand. Alibaba also has a dedicated support channel for buyers and sellers.
Ebay Value Chain Model Information Technology Information Technology Essay
Therefore, it is necessary to look at its performance through its segments and countries of operations. Through this process, the company creates value for its suppliers and customers. Support Activities: Company Infrastructure: Most of the business activities can be run successfully and that is possible only when infrastructure of the firm is quite strong compare to other things. Thanks to the nature of its business model, eBay does not have to deal with wholesalers and distributors and retailers. These include a collection of brands such as mobile. The shipping services are fast and relatively straightforward. Bureaucracy and red tapism in some emerging markets may hinder growth 2.
The link will stay active for 7 days. Firm infrastructure activities at Ebay Person supports entire value chain though the scope varies given that Ebay Person is a diversified company even within the industry. These include storing finished goods and delivering them to customers. For eBay, these include the following. There are various other companies like Tesco, Asda which provides such services online but EBay differentiates with these companies due to its value chain management. . Nutrient content of livestock and dairy products has a value far better than the nutrients from plants.
For the purpose of this article the definition is broad — it can mean moulding plastic to make products, using customer data to serve advertisements based on usage behavior to clients etc. Similarly, it can get a substantial lead over its competitors. For Alibaba, these inputs come from both its suppliers and customers. Similarly, these made 70. Effective and well-coordinated marketing initiatives may help DHL build brand equity and differentiate itself from the competition. The non-action on how to deal with. In other places, eBay has also use technological innovations to obtain a competitive advantage.
They understood and used the porter five forces to make their virtual value chain stronger and so it is not only competitive in the current market but also customers felt satisfied after using their services. . The whole business concept and strategy was for eBay to build an online community through its platform where anyone can transact without the anxiety of being cheated. In addition, online auction and shopping online proved to be cheaper due to the almost no overhead of the sellers which reflects on the price being sold. . Most of the outbound logistics function for eBay comes from the use of external services.
It provides customers and suppliers with a way to connect and resolve their issues through the call center. Often price drivers are customer expectations that customers are willing to pay more for. Eliminates the supply chain: Supply chain is a part of the value chain analysis but the biggest advantage a virtual value chain helps is to eliminate the supply chain of the company. For eBay, these are as follows. Alibaba generated its highest net income to date in 2021, amounting to ¥143. Similarly, the services it provides are the best among online e-commerce companies. The company is just a medium for buying and selling of goods and services.
It established Alibaba as a major player in the Chinese market among online retail platforms. These are services that make eBay a great choice for customers. Apart from that, eBay also has several promotional offers for customers. . From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs.
Download file to see next pages Read More This paper analyzes the unique e-business model perpetuated by Ebay with respect to conceptual frameworks like Porter's five forces model and value chain analysis. These partnerships allow the company to benefit from lower prices. As of October 2021, the company has approximately 1. EBay has also built an in-house Artificial Intelligence AI engine using new technologies which will help it to offer new products and enhance its customer experience, thus further strengthening its e-commerce platform. Are these good solutions? Easily replicable business model 3. New entrants While eBay has been ahead of the competition in some areas, it has also suffered due to new entrants.
