Analysis of eBays Business Strategy Essay Example | Topics and Well Written Essays - 1000 words

Analysis of eBays Business Strategy - Essay Example eBay uses online auction-based marketing strategy to expand business across the world. The company has developed community value concept among users while core essence of the concept lies in trusting people. They are trading thousands of dollar daily via online community and the business process is based on faith in online community members. The marketing strategy of the company can be entangled with business strategy. They implemented the concept of e-commerce to create the online platform for buyers and sellers to do the transaction. They did not limit themselves in the USA but designed online platform for international buyers and sellers. They successfully created an environment complemented with mutual trust for traders and ultimately fosters the concept of e-loyalty among them. The company has established a strategic relationship with more than sixty websites to attract new customers and their partnership with America Online helped them access large internet user base. This Move helped them to create an entry barrier for AOL to enter online auction market. Business Exchange program of the company added local dealers to participate in consumer auction market and this strategy helped the company domestic auction market of the country. eBay has rightly analyzed trading behavior of local customers and hence they have developed fifty-three local sites for the country. They expand distribution channel across the country and designed transaction site in accordance with consumer behavior of local users. They have entered more than thirty countries with establishing hundreds of transaction sites. Customers across the globe can get transaction support on a real-time basis. The company did not invest a single dollar on marketing in the initial years and the relied on time-tested viral marketing and word of mouth strategy to promote the brand among customers. Then they shifted to below the line promotion like electronic display, ambient advertising to increase brand visibility, and customers. They shifted their focus to e-marketing after digital marketing revolution. They used a web browser, social media platform, emails to generate response among online users.