E-Business in the Modern Business Environment - Essay Example

Ebay e business Table of Contents Introduction 3 Discussion 4 Brief Overview of e-Business 4 Background of eBay 5 Business Model of eBay 6 Organisational Design of eBay 7 Business Strategy of eBay 8 Products and Services of eBay 9 Importance of e-Business in the Modern Business Environment 9 Technology Used in eBay 11 Future Projection of eBay in the Global e-Business 12 Conclusion 14 References 15 Bibliography 18 Introduction In relation to the fierce competitive position of the global business environment, it has been observed that e-business is considered to be an essential component for the modern marketers in order to strengthen their business operations that further enable them to accomplish superior competitive position. The incorporation of ‘Information and Communication Technology (ICT) refers to the formation of e-business through which organisations can develop revolutionized relationship among its stakeholders. Additionally, in today’s business environment, e-business technology plays an imperative part by which organisation can customise its broad assortment of products or services, enhance productivity, raise customer satisfaction and attain superior competitive position among others. With the emergence of internet and different forms of web-based technologies, huge differences can be observed between traditional and international electronic marketplace. Through this technique i.e. e-business, majority of the companies are capable to determine their potential opportunities and comprehend the necessary skills and human capital that are required to grab those opportunities in an efficient manner (Thomson Reuters, 2013). The primary purpose of this research study is to reveal the role of technological advancements in the modern e-business environment. Moreover, the rationale of this study is also to identify the scope of e-business for the modern organisations. With regard to the present business context, the modern organisations tend to conduct their business operations with the help of internet or executing e-business technologies. It has been apparently observed that majority of the organisations perform their respective business or operational functions under dynamic, rapid changing and highly competitive environment. With the help of e-business technology, these organisations are capable to understand their overall marketing scenario and indentify opportunities towards attaining long-term sustainable growth. Therefore, it is quite essential to understand how e-business technology supports today’s business organisations in efficiently conducting their respective operational activities (SAGE Publications, n. d.). Through this study, it would be quite easy to understand about which way companies utilize e-business techniques while developing business models, implementing strategies and making effective delivery of products or services. This study also shows how international companies operate its overall business activities by executing e-business technique. Moreover, with the help of this study, it can be viewed that how e-business helps to develop valuable organisational designs, business models and strategies through which organisations can easily satisfy their objectives in terms of fulfilling market demands. Additionally, this study also intends to discuss the significance of e-business and e-marketing by which companies can attain competitive position over their chief business market contenders. This study also concerns about how eBay Inc. utilise e-business techniques and which way company manage and control its business activities with the help of this mechanism. Furthermore, the discussion of this paper would also further reveal the scope of e-business for the modern organisations and how it can enable the organisations to gain competitiveness in the business environment. Discussion Brief Overview of e-Business E-business is primarily considered as the execution of online business activities concerning buying as well as selling of products or services throughout the globe. It also represents the business transactions where both the sellers along with the buyers electronically cooperate with one another rather than physical contact. Additionally, e-business is principally regarded as the utilization of the medium of internet and similar technologies in order to incorporate and redesign overall internal as well as external operational activities of an organisation. Moreover, this approach also helps to develop new ideas as well as concepts that support the organisations towards attaining organisational success at large. In e-business, ICT plays a decisive part in assisting the organisations towards enhancing their business or operational performances. In this regard, ICT generally refers to a process where organisations conduct their overall business activities through a computer mediated network. Moreover, e-business also refers to the transformation of organisational working procedure in a ground-breaking direction by providing unique customer value through the application of innovative technologies, philosophies and the utilization of whole new computer paradigm (Chhabra, 2012). Through the execution of e-business technologies, an organisation can generate huge profits particularly in the business segment of entrepreneurial start-ups and corporate ventures. In relation to the present business scenario, it has been apparently observed that different forms of ICT and e-business model are considered as significant components that delivers innovation as well as competitiveness to the organisations in this modern day context. In certain part of the world, it has been viewed that the potentiality of ICT and e-business model is still underdeveloped in case of small and medium sized enterprises. E-business also demonstrates an innovative trend within the business activities that tends to develop the traditional business approach like supply chain management, non-cash payment and other business approaches (Pearson Education Ltd, 2002). Background of eBay In the year 1998, eBay was incorporated as a worldwide technology organisation that facilitates business on the basis of certain reportable divisions i.e. marketplace, payments and GSI commerce Inc. EBay is fundamentally regarded as an American based multinational consumer-to-consumer business corporation. The organisation offers unique online platform through which individuals and merchants can buy or sell products and avail its different services as per their requirements. Moreover, it also facilitates the facet of mobile commerce and payment facilities by which buyers or sellers can make online transactions in terms of products and services as well. It has been noted that the organisation has developed a unique open source platform by which merchants all over the globe can access its ‘Application Programming Interfaces (APIs)’ concerning their respective online business activities. It is worth mentioning that in the year 2012, the organisation attained huge marketplace segment that comprises in excess of 112 million active users in its domestic marketplace and over 350 millions listed users throughout the globe. At the end of this fiscal year, the organisation undertook three particular approaches i.e. one in terms of payment segment and another two in terms of marketplace segment. The company provides an online auction facility as well as bear shopping website through which people and various other leading business organisations throughout the globe can transact business effectively (Thomson Reuters, 2013). In relation to identify the business operations of eBay, it has been viewed that the company helps to incorporate its buyers as well as sellers altogether through its online website and various other advanced technologies on international basis. Company’s marketplace segment provides e-business platform i.e. eBay.com where global customers and merchants obtain unique online shopping experiences regarding fashion, motors, electronic items, sporting goods and jewellery items among others. Additionally, marketplace segment of the company also comprise ‘Red Laser’ and ‘Milo’ that affiliates the mobile users regarding buying along with selling of products and searching specific products as per their requirement respectively. The aforementioned marketplace platforms of the company can be easily accessible through computers and mobile devices with the help of internet technologies (Thomson Reuters, 2013). In terms of payment segment, the company provides an opportunity to its customers in order to pay bills in a flexible manner. The company offers three alternative payment options i.e. PayPal, Bill Me Later and Bill SAFE approaches that provide more convenience to both sellers and buyers while exchanging their respective business operations. Through the approach of PayPal, buyers as well as sellers can securely and instantly obtain and send payments through online transactions across the globe. The approach of Bill Me Later is only applicable for the US merchants where consumers obtain credit at the time of selling and purchasing of products. This technique of payment can also be done through mobile devices. The company’s Bill SAFE payment method is only applicable for the online merchants of Germany through which buyers or sellers can obtain an invoice receipt before selling any item or after receiving the products (eBay Inc., 2012). Business Model of eBay In relation to determine the business model of eBay, it can be observed that eBay is regarded to be one of the foremost internet based online retailing organisations that is mainly designed for conducting C2C related business operations. Through this particular approach, the organisation enabled the global clients to resell their low-valued products by a considerable level (Amit & Zott, 2001). The business model of e-Bay has been noted to be significantly focussing upon building an efficient online trading community amid different individuals through extensive usage of internet facilities. The business model of the organisation tends to connect the buyers and sellers in an effective way through which the potential sellers are allowed to make their product to be listed for sale. Consequently, the potential buyers are also permitted to bid the amount for respective items to browse the listed products in a fully automated process. Moreover, the business model of eBay also incorporates both globalised as well as streamlined traditional trading approach in order to attain organisational success. This type of business process facilitates the sellers to obtain a large number of potential buyers for immediately listing out their required items in an effective manner (Bjornsson, 2001). The business model of eBay also facilitates the buyers to avail free browsing as well as bidding broad array of listed items. However, the sellers of the items are charged basically on the basis of the following approaches. The sellers likely to pay a non-refundable fee which depends upon the sellers’ opening bidding price that ranges from 30 cents to USD 3.30 A fee concerning final value of the item is charged at the closing stages of the sellers’ auction that ranges up to 5% of the final price. Moreover, the organisation has charges additional fees concerning promotion of the sellers’ items in a highlighted or bold listing process (Bjornsson, 2001). Therefore, it can be stated that the business model of eBay considerably depicts an effective strategy to attract large number of potential individuals towards purchasing their items through using advanced technologies. Organisational Design of eBay The notion of organisational design can be considered as one of the major aspects in terms of effectively performing broad assortment of business activities in a more convenient way. Moreover, an effective organisational design also facilitates a firm to differentiate its business functions in a more achievable way through fragmenting respective individuals in different roles and functions. Organisational design is a widespread structure that ensures integrating pivotal elements of a particular firm like people, process and systems. It includes the components of organisational structure concerning management hierarchies, departmental alignment along with different functions performed in the organisational process (Galbraith, 2012). Corresponding to the organisational design of eBay, it can be observed that the organisation tends to possess a formal structural design due to its extensive number of operational functions. According to the present performance of the organisation, it can be observed that eBay involves several business functions which are likely to engage complexities by their nature. Therefore, the organisational design of eBay can be stated as more structured that enables the organisation to effectively manage its overall business or operational functions at large of the organisation (Howells, 2005). According to the organisational design of eBay, it has been apparently observed that the Chairman of the organisation named Pierre Omiya possesses the authority to command the other hierarchical members belonging to the organisation. The Chairman of the organisation bears certain significant liabilities making the organisation to accomplish its predetermined business goals by a considerable level (eBay Inc., 2012). Business Strategy of eBay By introducing a new experience of conducting trade facilities between an extended number of individuals, the business strategy of eBay can be regarded as an effective set of practices that enabled the organisation to sustain its leading position in the global online retailing industry. According to the present budding growth of modern online organisations, it can be stated that effective business strategies play pivotal part towards supporting the companies to sustain its position in the respective industry in this competitive financial market. In order to determine the business strategy of eBay, it has been viewed that the organisation implements effectual business strategies in the form of offering extended number of available items to the global customers. Moreover, the strategy of eBay also tends to focus providing convenience to the buyers in relation to their browsing as well as bidding options while selecting items from the lists (Bjornsson, 2001). In addition, due to the rapidly increasing number of sellers and buyers, eBay tends to practice its business operations through developing an effective network for conveniently making their respective transactions with the organisation. In this similar context, it can be stated that the business strategy of eBay has further observed to be more focused on increasing its networks in the global market. The strategy of expanding organisational network eventually facilitated the organisation to improve its performance in the global online retailing industry at large. Moreover, the strategy also enabled eBay to increase the value of the organisation’s services towards different groups of sellers along with buyers. In addition, the aspect of price competitiveness can be regarded as the other advantageous strategy of eBay in the global online retailing industry. The organisation remains to set a competitive pricing strategy that enables both sellers and buyers to independently perform their trade activities. Therefore, in relation to the business strategy of eBay, it has been apparently identified that the wider networking system is one of the major approaches of the organisation that made it to sustain in this competitive world of financial market (eBay Inc., 2012). Products and Services of eBay Products or services are generally regarded as the primary aspect for an organisation that enables it to make long-term sustainability in the competitive business environment. In relation to the products and services of eBay, it has been identified that the organisation highly focuses upon rendering extensive service to both the sellers and buyers who tend to perform trade operations through eBay. According to the business strategy of eBay, it can be observed that the organisation provides its range of C2C services to both the sellers and buyers through its different subsidiaries. Relating to this aspect, Half.com and PayPal are few of the major subsidiaries of eBay. In this regard, Half.com is a fixed-price online retail organisation which significantly tends to offer new products to the global customers. Contextually, PayPal is highly focused on offering payment services for the transactions between the sellers and buyers (eBay Inc., 2012). In relation to the present business performance of eBay, it has been recognised that the organisation tends to create an efficient global marketplace in order to facilitate the sellers and buyers towards independently performing its auction activities. Moreover, the extensive area of networking has also enabled eBay to provide a wider marketplace for the global users to bid auctions conducted in other geographical locations. Moreover, the organisation also possesses many other operational services that are developed to provide a convenient trading facility between the global sellers and buyers. Few of the major service operations rendered by eBay are eBay Stores, eBay International, eBay Motors, eBay Local Trading, eBay professional Services, eBay Premier and eBay Live Auctions (Krishnamurthy, 2004). Importance of e-Business in the Modern Business Environment The emerging growth of global retail industry can also be regarded as one of the major opportunities for the modern organisations to achieve substantial benefits. According to the present day context, the global retail sector for fashionable products is considerably providing ample opportunities for the marketers. Moreover, the importance of e-business has been significantly obtaining a greater response by the modern organisations in order to develop their existing business performance and achieve more competitiveness in the fiercely growing business environment. The organisations seek to target their potential groups of customers through establishing their presence in the web with broad assortment of products or services. Moreover, the organisations in the present business world have been highly focused on facilitating the customers to avail the convenience of selecting and purchasing products from their home. Therefore, it can be apparently stated that the integration of ICT in the business process is highly practiced by the retail organisations that enables them to remain in the competitive position (Phan, 2003). E-Business has influenced the current operations of the retail organisations through enabling them to collect a large group of potential customers for the organisational products. In relation to identify the major advantage of e-business in the retail operations, it can be recognised that the modern organisations can reap significant benefits. In general, the effective practice of e-business can facilitate a retail organisation to assess substantial opportunity to target broad number of customers from different regions of the world. It enables the organisations to market and promotes their products or services through conducting different web applications that further ensures to acquire large group of potential customers. Moreover, the practice of e-business in the business process also provides a wider platform to the organisations for performing different business activities more efficiently (Andam, 2003). In addition, the integration of e-business also ensures to enable the organisation to make rapid growth in its financial position due to its convenience in nature, lower operational cost along with a minimum capital investment and human resource. E-business can also create a strong value through capitalising the complementarities between the supply chain process and internet services that ensures to connect a large group of customers at a time. In this regard, complementarities refer to the process of selling product in a bulky manner that enables to acquire more value as compared to selling goods separately (Amit & Zott, 2001). Technology Used in eBay With regard to determine the technologies that are used in eBay, it has been apparently observed that the global retail industry can be considered as one of the major developed sectors. According to the increasing pace of development in the retail operations of the modern organisations, it has been observed that the introduction of ICTs rapidly transformed the organisational activities especially in the retail industry at large (eBay Inc, 2012). EBay has been identified as one of the major fast growing online retailing organisations throughout the globe experiencing higher profitability, superior financial growth and augmented market share as well as productivity. The organisation attained incessant financial growth due to its execution of simple and holistic business strategy by which any individual can make trade activities with multiple persons across the world. The business model of the organisation incorporates an advanced technological feature that enables the company to make large transactions amid the sellers and buyers located in every corner of this globe. The business model of the organisation highly engages technological aspects through creating a wide network for the global sellers and buyers (eBay Inc., 2012). The online auction service of eBay is highly centred on investing an effective and advanced Information and Technology (IT) infrastructure that enabled the company to efficiently perform its business operations. In the context of technological usage, the company significantly invests upon advanced computing systems relating to data processing as well as storing valuable information in an efficient manner. In the data processing system, the organisation frequently involves millions of users at a time connecting to listing or bidding activities. With this regard, the company facilitates its billions of users by creating an easy website that enables them to efficiently perform their trading activities. The homepage of the company contains numerous features through which a seller can list the items through identifying the present trends of the products in the market. Moreover, the homepage also enable the buyers to select their authentic item through providing an extensive number of products in its product catalogue. The feature also facilitates the buyers through displaying various recommended items and supports to make effective bidding of the items. The web application of eBay also enables the users to easily search the preferred items through emphasising upon the previous searches made by the users (Fowler & Morrison, 2010). In terms of storing data, the technology that utilises by eBay is focusing on investing business intelligence applications that tends to store numerous valuable data. The business experts of eBay periodically examine the stored data and identify the appropriate requirements of the users through conducting an effective marketing approach. This marketing helps the management of the organisation to figure out the needs of both buyers and sellers from the data warehouse (Array Consultancy Services, n.d.). Moreover, the payment service of the organisation is recognised to be a vital part that further involves advanced technological applications. In this regard, PayPal is one of the major service providers of eBay who supports the organisation towards successfully organising and providing effective payment service to the buyers along with the sellers With this concern, it can be stated that the business functions of eBay is significantly influenced by greater use of technological aspects that enabled the management of the organisation to make effective decisions. PayPal considerably involves offering payment options for the transactions that occurs between sellers and buyers. The PayPal service of the organisation ensures to make appropriate payment transaction at the completion of the bidding activities between the sellers and buyers (Array Consultancy Services, n.d.). Future Projection of eBay in the Global e-Business In relation to the fiercely competitive business market, it has been identified that the significant aspect of e-business has becoming a major consideration for most of the organisations that enables them to raise their business or operational by a considerable level. Moreover, the organisations of the present business world tend to involve e-commerce in the business operations in order to obtain better control and also for targeting a large group of customers around the world (Eghoff & Mabey, n.d.). The present rapid development of the technological advancement significantly depicts a growing opportunity for eBay in the future e-business environment. According to the present business scenario, the number of internet users is rapidly increasing especially in the online retailing segment. Therefore, the retail organisations can sincerely involve the technique of e-business to avail the opportunity of gathering potential customers for selling their diverse products or services. In addition, the growing number of internet users is also viewed to be a major determinant for eBay to attain significant growth of providing retailing services to its global users. According to this present global context, the number of internet users is fiercely growing in all the global regions. The following statistical representation depicts the amount of growth of global internet users in different geographical regions. Source: (Miniwatts Marketing Group, 2013) With due consideration to the above statistical evidence, it can be stated that there exist a growing opportunity for eBay to sustain its leading position in the respective industry. Conclusion In accordance with the present rapid transformation of the technological advancements, it has been identified that the business strategies of the modern organisations are highly focused on involving the approach of online business at large. This is owing to the reason that this particular approach empowers the organisations to identify and most importantly to build potential customer groups for selling their broad assortment of product offerings. The products or services that rendered by the modern organisations are marketed and promoted efficiently through the technique of online as a form of e-business that enables the organisations to perform their trade operations beyond the national boundaries. The communication and technological advancement within the ICT model provides an extended numbers of tools to enhance the efficiency as well as business operations of the modern organisations. However, the increasing transformation of the online business also tends to generate fiercely competition among the organisations with regard to their value and quality of products or services. The above discussion has revealed the business model and organisational design that can be regarded as crucial factors for eBay ensuring greater advantage in the online business market. Moreover, the discussion has also encompasses the business strategy along with the products and services rendered by eBay which observed to be significantly different as compared to other online service providers. With this concern, it can be stated that the service of enabling person2person trading facility is one of the imperative factors for the organisation to sustain its long-term dominance in the growing online business. Moreover, the discussion of this report has also highlighted that the broader implementation of ICT along with other technological features have uplifted the financial performance of eBay in comparison with other online service providing organisations by a greater level. Thus, it can be concluded that the business strategies of the organisation found to be more successful in the present online market that enabled both the buyers as well as the sellers to perform their respective business transactions independently and successfully. References Amit, R. & Zott, C., 2001. Value Creation in E-Business. Strategic Management Journal, Vol. 22, pp. 493-520. Andam, Z. R., 2003. E-Commerce and e-Business. Concept and Definition. [Online] Available at: http://www.kau.edu.sa/Files/830/Files/61164_Ecommerce%20and%20E%20Business.pdf [Accessed March 26, 2013]. Array Consultancy Services, No Date. eBay. Business Case Research Report. 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