Competitive Strategy for E-Bay Incorporation- myassignmenthelp

Question: Discuss about theCompetitive Strategy for E-Bay Incorporation. Answer: Analysis of eBay E-Bay incorporation is an international electronic commerce organisation, facilitating online sales between consumers and businesses. The company was started in 1995 by Pierre Omidyar. The organisation provides the facility of online auction and shopping of wide variety of products. The company had revenue of US$8.97 billion in 2016 financial year. The purpose of selecting eBay is that the organisation changed the method of online trading, by taking a risky step of using innovative technology. This decision of company helps them in gaining a competitive advantage over their competitors (Simonsohn 2010). E-Bays Business Model According to Zott Amit (2010), eBay has adopted a unique strategy that helps them achieve success in electronic commerce market. E-Bay is originally an auction site that assists customers in selling their products to other customers. The unique business perspective help organisation in increasing their customer base and increasing customer satisfaction. The company provides a new form of trading which is not provided by other online retailers such as Amazon or Wal-Mart. The company features online auction where interested customers can bid their prices on a product and the largest bidder gets the product. The website structure is simple and easy to understand. The organisations unique business model helps them gain a competitive advantage because the customer base is not restricted by geographic boundaries. Companys Strategy The research of Chen, Liu Yu (2012) provides that eBays strategy is to provide high-quality services to its customers, to maintain their satisfaction and deliver products at cost-effective prices that help them gain an advantage over its competitors. Following are the key elements in their strategy: The company provides a customer-to-customer trading option in the online retail market. Customers can buy new products from different companies or auction their stuff on the website. Other customers can bid their price and the product is sold to the highest bidder. It is a unique approach adopted by the company. The worth of product enhanced due to this technique which is satisfying for both the parties. Other online retails such as Amazon, have high inventory storage cost, but eBay has competitive benefit since the company does not store their products in the warehouse. The company has more than 171 million active members in the second part of 2017 and it has a net worth of US$9.4 billion. The organisation has used various strategies to increase their market value in the online retail industry. The competitive advantage of the company includes the transparency of transaction in the C2C model where no details are hidden. The company provides high-level of security in their transactions as well. These features help the company in sustaining their growth in the future. CAGE structure The organisation has implemented innovative technology within their business processes and enhanced their business globally. The paper of Ofili (2016) discussed that, the online nature and no inventory storage requirements help the company in increasing their business worldwide. The company provide key information to interested customers and help them organise their trade. The website uses make online payments due to their trust in the organisation. It helps the company in establishing a competitive advantage. Analysis of Atlassian Atlassian was founded in 2002 and it is an Australian software company. The firm operates in the software industry and prepares group collaboration tools for companies. The clients of the company include Facebook, Visa, and BMW along with other forty thousand corporations. The revenue earned by the company in the first quarter of 2017 was AU$619.9 million. The company has increased their worth to US$5 billion in past 12 years. The purpose of choosing Atlassian for this report is that company has raised their client to forty thousand without any sales force. The companys spending on sales and marketing are below 21 percent of their revenue. Atlassian did not take any funding from outside investors for business operations. Companys Strategy According to Carlson (2017), Atlassian aim is to provide great quality software programs at a lower price, compared to its competitors. The company develops programs for organisational teams to chat and collaborate on different projects. The popular programs of Atlassian include JIRA, Confluence, and Bamboo. To increase their market share, Atlassian acquires various other software companies. Their recent acquisition was a group collaboration program called Trello. Atlassians main objective is to provide great product satisfaction to their clients. The organisation keeps their programs charges low for their customers. Asay (2014) called Atlassian strategy to be upside down because it did not spend on sales team or marketing their products, and they did not take funding from investors. Instead of focusing on satisfying their outside investors, the company focuses on their consumers software requirements, and they maintain a high rate of client satisfaction. This unique approach creates a competitive advantage because the money saved on sale and marketing are spent on product enhancement by Atlassian. The company has sustained their future growth by adopting this upside down policy. Atlassian Business Model The business model of the company emphasises on providing great quality programs at comparatively lower charges. According to Bass (2016), the absence of sales force is an example of the innovative approach. Below are the key parts of Atlassian business model: Creating a great product based on clients necessities Charges of product should be lower than competitors Concentration on enhancing the daily users for applications Ease of availability of programs at the website of the company Maintaining easy trial options and transparency in charges The business model of Atlassian shows innovation and new approach of the company. The high rate of clients satisfaction and no outside investors pressure, sustain the growth of the company. CAGE structure To enhance their market share, Atlassian required increasing business in outside countries such as Ireland, China, and Singapore. Atlassian can enhance their clients by investing in the software companies of Singapore. The organisation should evaluate their cultural, administrative, geographic and economic factors before investing in outside markets. According to Reodique (2016), Atlassian can benefit from the rapid growth of Singapores software industry. References Asay, M. (2014). Atlassians upside-down business strategy: Could it work for you?. TechRepublic. Retrieved from https://www.techrepublic.com/article/atlassians-upside-down-business-strategy-could-it-work-for-you/ Bass, D. (2016). This $5 Billion Software Company Has No Sales Staff. Bloomberg. Retrieved from https://www.bloomberg.com/news/articles/2016-05-18/this-5-billion-software-company-has-no-sales-staff Carlson, R. M. (2017). Atlassian: Analysis and strategic recommendation. Chen, K. P., Liu, Y. S., Yu, Y. T. (2012). The Seller's listing strategy in online auctions: evidence from eBay. Ofili, O. U. (2016). Internationalization: Choosing The Right Entry Mode: Lessons From Ebays Strategy In China.European Scientific Journal, ESJ,12(1). Reodique, A. M. (2016). Singapores analytics software market to grow 8.6 percent CAGR over the next 3 years. MIS-Asia. Retrieved from https://www.mis-asia.com/tech/applications/singapores-analytics-software-market-to-grow-86-percent-cagr-over-the-next-3-years/ Simonsohn, U. (2010). eBay's crowded evenings: Competition neglect in market entry decisions.Management science,56(7), 1060-1073. Zott, C., Amit, R. (2010). Business model design: an activity system perspective.Long range planning,43(2), 216-226.