This report has focused on an innovation of eBay, the largest online marker in the world. Considering this, there are two innovations that the company can to choose from. The first one is conducting its own shipping through removing other shipping options in the site. The other one is through charging shipping firms 5% of their shipment fees for each transaction done on eBay website. From this report, it is a fact that eBay has the resources capabilities of performing any of the two innovations including financial resources, IT infrastructure, current customer base as well as talents. However, the first innovation has higher financial risk as compared to second one. This is because it includes big investment in starting up shipping company, it does not give the customers the choice of choosing their preferred shipping costs. Nevertheless, if successfully implemented, the company can yield a substantial amount of profits as eBay already has more than 230 million users on its platform , besides eBay got the expertise to implement a proper electronic platform for tracking shipment and getting two way feedback from the customers to ensure the efficiency of the shipment process , besides this innovation would enable eBay to increase its user platform and enhance customer satisfaction by efficiently managing the delivery and shipment of products. For the second innovation, although the financial risk is small, the profits are much lower as compared to the first innovation and the success of this option is extensively dependent on the courier company chosen by eBay. Thus, considering the two innovations, this report finds the first one is more lucrative as compared to the. Second one Therefore, this report recommends the company should consider implementing the first innovation, bearing in mind the chances of the financial risks are minimal. Contents
1.0 Company background
2.0 Problem to be addressed and innovation
2.1 Problem to be addressed
2.2 Strategic response
2.2.1 First suggested innovation: Provision of shipping services
7 2.2.2 Second innovation: Receive $1 from other shippers
3.0 Asses market opportunities
3.1 Market opportunities for first innovation
3.2 Market opportunities for second innovation
4.0 Identify target markets
4.1 Target market for the first innovation
4.2 Target market for the second innovation
5.0 Analysis of competitors and barriers
5.1 Competitors for first innovation
5.2 Competitors for second innovation
6.0 Assess resources and expertise
7.0 Knowledge and commitment
8.0 Strategy for landing product
9.0 Financial risks
10.0 Conclusion and recommendations
1.0 Company Background
EBay is an American multinational e-commerce company. The company provides a wide range of consumer to consumer as well as business to consumer sales services through the internet (Alm & Melnik, 2014). Headquartered in California, United States, the company was established in 1995 by Piere Omidyar. With increased use of internet among many people all over the world, the company has witnessed substantial growth over the past few years. Currently, it is a multi-billion company with operations localized in more than thirty countries all over the world. The company operates eBay.com, which is online auction as well as shopping website, where businesses and people buy and sell a wide range of products as services all over the world (Cebi, 2013). eBay generates revenue by a complex system of fees for services, the more the seller sells and get profits the more eBay acquire profits. The website has also expanded to include online classified advertisements, online ticket trading, and online money transfers among other services. This report seeks to evaluate a suitable innovation that can increase profits for the company. 2.0 Problem to be addressed and innovation
2.1 Problem to be addressed
Due to the increased popularity...
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Gold, E , 2002,“Shipping and International Organizations: The Globalization of an Industry”, Ocean Yearbook Online, vol4,no.2, pp.354-377.
Hambrick , D, & Fredrickson, J. 2014, “Are You Sure You Have a Strategy?” , Academy of Management Executive, vol 15, no.4, pp. 48-59.
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