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ebusiness

1. How do the properties of the Internet drive eBay's business model? Please explain your answer.

2. What does eBay actually sell, and to whom does it sell?Please explain your answer.

3. What are eBay's capabilities and where does it find capabilities it needs, but does not have in house?Please explain your answer.

4. Which revenue source of eBay's is most enhanced by its "stickiness?" Please explain your answer.

5. Should eBay aggressively pursue the business-to-consumer (B2C) auction market? Please explain your answer.

Solution Preview

1. Ebay's business model is to generate revenues based on a high volume of trades from seller to bidder. As this trading is done in a virtual setting, the speed and bandwidth of the internet is a key factor. If customers were not able to get a fast and reliable connection to the internet, then they would not be able to trade their goods through Ebay.

2. Ebay sells the vehicle in which one person is able to connect with another person halfway around the world. Ebay sells a service to individual consumers ...

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