Sell side/ Supply side with eBay Networked Organisation Group project

 This is a sell side/ supply side map for eBay ( Case study 1.3  pp.42 Text book)

Corporation Background:

A California software engineer named Pierre Omidyar coded the site on 4^th Sep 1995. Therefore, it became eBay in 1997. The eBay market place is well known for the service which enables sellers to list items for sale on an auction or fixed-price basis giving buyers the opportunity to bid for and purchase items of interest. The marketplace platforms include an average of 100 million products for sale on each day.

Revenue Model:

1.      The eBay marketplaces approximately 70% of net revenues in the core business in 2007.

2.      PayPal approximately 25% of the net revenues in 2007.

3.      Skype Internet telephony contains 5% of the net revenues in 2007.

4.      Advertising and other net revenues totaled $94.3 million in 2004. ( just 3% of the net revenue)

eBay proposition:

  eBay use the successful strategic approach to take advantage of increased consumer adoption of the internet. But also they did good job on the integration across the customer and suppliers.

This is the force to point out the crucial elements make eBay success.

For buyers:

Selection   Value

Convenience   Entertainment

For Seller:

Access to broad markets      Cost-effective marketing and distribution

Access to large buyer base     Good conversion rates.

Compare to the order Management:

  We are experiencing the changes of CRM and SRM in the High-tech industry and manufacturing industries around the world. eBay did the work to make the business’s CRM and SRM systems answers from customer and supplier standpoints. On the costumer side, it is hard to control the customer orders managed cost effectively across the order fulfillment chain. In the mean time, to manage the interaction with the vendor taking into account the customers’ purchase decisions.

  In sum, to take an enterprise view of CRM and SRM systems is the key to success. Corporations must integrate these systems to achieve each part of the business are connected and collaborated.