Visit e-bay and look at the many types of auctions available. If you were consid

Question

Visit e-bay and look at the many types of auctions available.  If you were considering establishing a rival specialized online auction business, what are the top three market opportunities you would pursue, based on the goods and auction community in evidence at eBay? Support your analysis.

Select a B2C e-commerce retail industry segment such as pet products, sporting goods, or toys, and analyze its value chain and industry value chain. Identify the major industry participants in that business and illustrate the move from raw materials to finished product.

Explanation / Answer

based on the goods and auction community in evidence at eBay, the top three market opportunities to be pursued are books, music, computers and software.

E bay adopts a cost strategy that is a unique set of business processes, a unique resource, or a low cost supplier. It is essential that other firms in the marketplace do not have access to, or cannot duplicate, this since it will allow them to charge a lower price while still making a profit. Ebay differentiates from its competitiors by establishing unique properties or a consumption experience that competition does not have.

Petsmart is a B2C e-tailer. Its main customer value proposition is that it offers the broadest assortment of pet supplies at the lowest prices. Petsmart uses a sales revenue model: it operates in the specialty retail marketspace, and focuses on the pet supplies niche. Petsmart is the leading online pet supply company; many of its original online competitors, such as Pets.com and Petstore.com, have gone out of business. Its main competitors appear to be local pet stores and pet supply catalogs and Petsmart’s main comparative advantage is its brand name. Petsmart appears to be using a “bricks-and-clicks” market strategy: it started as a traditional pet supplies retailer with over 500 physical “superstores” and leveraged its brand to the online environment. Its marketing strategies include: pricing (low prices); providing interesting content and community on its Web site for its target market; affiliate marketing; and email marketing through free email newsletters. Information about Petsmart’s management team and organizational structure is available if the student follows the “Investor Relations” link from its “About Us” page.

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