EBAY

1. Explain types of business pressures experienced by the organization and what are the responses the organization found to be apt and successful? Following are the business pressures experienced by eBay. EBay has experienced controversy, including cases of fraud, its policy requiring sellers to use PayPal, and concerns over forgeries and intellectual property violations in auction items. Frauds that can be committed by sellers include selling counterfeit merchandise; receiving payment and not shipping merchandise; shipping items other than those described; giving a deliberately misleading description; knowingly selling stolen goods; Frauds committed by buyers include PayPal fraud, namely filing false shipping damage claim with the shipping company and with PayPal; Friendly fraud: receiving merchandise and claiming otherwise; the buyer sending a forged payment-service e-mail that states that he has made a payment to the seller's account (an unsuspecting seller may ship the item before realizing that the e-mail was forged). Shill Bidding Shill bidding is undisclosed vendor bidding that is used to artificially inflate the price of a certain item. It is usually carried out with "shill" account(s), by either the seller under an alternate account or another person in collusion with the seller. Shill bidding is nominally prohibited by eBay.[6] However, eBay has been criticized for not doing enough to combat the problem.[7][8] Indeed, it can now be demonstrated that eBay actively facilitates such allegedly criminal activity.[9] Still, Forgeries It is estimated that about a quarter of all ancient coins and about two-thirds of all antiquities sold on eBay are modern forgeries.[11] In March 2008, Professional Coin Grading Service issued an alert noting counterfeit PCGS slabs and various United States and Chinese coins originating from People's Republic of China being sold on eBay.[12] Fraud is combated by

third-party businesses, such as Check MEND, compiling lists of stolen goods from local authorities and businesses so eBay consumers can check to see whether the goods they are buying are stolen; and

third-party software that could potentially eliminate eBay account hijacking by alerting users if they are being tricked into going to a bogus, or "spoof", Web site (see anti-phishing). There are techniques, like sniping, which let buyers avoid shill bidders.[10]. E-bay asked sellers to put certificates (scanned) for all antique items for concerned authorities to avoid fraud. E-bay effectively used feedback system to counter fake sellers, if any seller getting too-many negative feedbacks then they are black-listed for further transactions.

2. Explain Role of IT in e-bay business model With more than 100 million active users globally, eBay is the world's largest online marketplace, "where practically anyone can buy and sell practically anything" (eBay.com, 2012a). Founded in September 1995 by Pierre Omidyar in his San Jose living room, eBay connects a diverse and passionate community of individual buyers and sellers, as well as small businesses. . The Business Model of eBay is an online person-to-person trading community on the Internet, using the World Wide Web. Buyers and sellers are brought together in a manner where sellers are permitted to list items for sale and buyers to bid on items of interest, also both sellers and buyers are able to browse through all listed items. The items are arranged by topics, where each type of auction has its own category. eBay has both streamlined and globalized traditional person-to-person trading, which has traditionally been conducted through such forms as garage sales, collectibles shows, flea markets and more, with their web interface. This enables easy searching for buyers and enables the sellers to immediately list an item for sale within minutes of registering. When an item is listed on eBay a nonrefundable Insertion Fee is charged, which ranges between 50 cents and $3.00, depending on the listing start price of the item. A fee is charged for additional listing options to promote the item, such as highlighted or bold listing. A Final Value (final sale price) fee is charged at the end of the seller's auction. This fee is 7.9% of the final sale price, there are other circumstances and exceptions but this is the general figure. (EBay Australia, 2012a) EBay automatically notifies the buyer and seller via e-mail at the end of the auction if a bid exceeds the seller's minimum price, and the seller and buyer finish the transaction independently of eBay. The binding contract of the auction is between the winning bidder and the seller only Role of IT

EBay used web pages to interact with customers(both buyers & sellers) EBay brought PayPal for safer online transactions. So network security is used in online transactions. Many internet security measures are taken to avoid phishing, virus and malwares etc. because in online business trust is more important than anything. Company used mail services to send about the confirmation of orders to both buyers and sellers.(buyer & seller collaboration)

Analysis of eBays Business Model EBays business model was based on creating and maintaining a person-to-person trading community. This allows buyers to easily search for what they want to purchase. It also allows sellers to post their items minutes after they have registered. There are a few specific elements of eBays business model that they recognized as key to its success they are (as given in the case study): Being the largest online trading forum with a critical mass of buyers, sellers, and items listed for sale Its compelling and entertaining environment, which had strong values, established rules and procedures that facilitated communication between buyers and sellers Establishing programs such as Safe harbor to aid in disputes and to punish users who violate eBay Cost effective and convenient trading Strong community affinity An intuitive user interface that was easy to understand, arranged by topics, and fully automated

3. What are the strategic objectives of the organization? How IT-Strategic alignment was achieved? Use an example Strategic objectives of the organization

Corporate level strategy EBays corporate level strategy was to become a diversified business. They wanted to diversify not only the products they offered but also their customer base and global reach. By using the eBay service you can find virtually anything you are looking for. Business Level Strategy EBay competes in the online auction industry using a broad differentiation strategy. Although they may not be the most inexpensive online auction site, they have the largest variety

of products offered. They also appeal to a larger group of consumers that include individual sellers, small entrepreneurs, and corporations all over the world. EBay achieves broad differentiation through their strong eBay community, a global reach not matched by any competitor, and a category span of 27,000. These aspects of the eBay service among others set their company apart from the rest. Customers see the value in using the eBay service. This is why eBay has become so successful. EBays Business Model EBays business model was based on creating and maintaining a person-to-person trading community. After implementing their model, eBay has been able to build strategic partnerships, continue to make innovative changes and improvements, and monitor its internal and external environments for possible future opportunities. This has given them the prestige of being the worlds largest online auction company.

IT-Strategic alignment

In fact IT is the core-heart of eBay business. For many organizations like chevron IT helps as subsidiary to core business oil & gas. But we can see that IT itself is oxygen for eBay.

Developing of web interface on internet which can sustain heavy customer traffic usually millions per day

E-bay brought PayPal for foolproof online transactions. IT played crucial role in network-security

E-bay used social networking sites for effective digital marketing.

4. What are various green initiatives undertaken by the organization? State and explain? The eBay Green Team started over a pizza pie. In 2007, 40 eBay employees got together, driven by a common goal to make environmental and green issues a priority within the company. Fast forward two years and over 1,000 employees across 18 different countries are currently part of the Green Team. Yesterday marked their official foray into the public sphere with the launch of eBayGreenTeam.com, a site dedicated to uniting the community both employees and customers/vendors around a common dialogue of behavior change. Weve covered some of eBays efforts in social enterprise previously, but as Earth Day rapidly approaches, the company is making a point to highlight many of its green efforts across the board. Not only does it boast a LEED-Gold certified campus at its corporate headquarters in San Jose, CA (which also houses the citys largest solar installation), the company is also proud to not have a large supply chain nor retail footprint. Rather, eBay views itself as more of a conduit, a connector. Even a change agent, to use a term previously discussed here. A connector of buyers and sellers, eBay has the unique ability to impact both the supply AND demand sides of commerce. 3 Ways to Shop Green by eBay 1. Buy Resource Preserving Products: From brighter bulbs to smarter faucets to things that run on people power, according to the company, products that save resources preserve the greater good. 2. Buy Sustainable Products: Buy products, as eBay says, that were designed to live longer than a day. Products made from organic or otherwise sustainably-produced methods and materials take less from the planet and ensure that we can go on producing for generations to come. 3. Buy Recycled, Repurposed, Reincarnated: Purchasing used, refurbished, or vintage items saves resources from being used in the production of new goods and extend the lives of products, not to mention the carbon footprint inherent in that kind of production. And as the people at eBay say, be it vintage, used, or pre-owned, its still new to you 30 Days of Green As a way to spread the message about the new Green Team initiatives, eBay partnered with the Hearst Group to create a campaign called 30 Days of Green that will run throughout all of the Hearst Groups print publications. Appearing in Marie Claire, Good Housekeeping, Harpers Bazaar, and even Cosmopolitan to name a few, eBay wants to share the information on being a smarter, green consumer to customers in their natural habitat, in the words of Reader. Each publication will run editorial/advertorial throughout the entire month of April that speak to their specific demographic (read: Cosmo providing tips on the best natural or organic body oils to give your man), accompanied by some of the green buying options available on eBays online marketplace. Partnerships like these with the Hearst Group as well as with NGOs and non-profits will, in the hopes of eBay and its Green Team, help foster the conversation around the way we think about what we buy.

5. What are the various CSR activities undertaken by the organization? State and explain Give. Good. Green is a new social-media based campaign from eBay - designed to inspire their community of 88 million buyers and sellers to make a difference through a variety of different activities. Based on eBay's philosophy that every individual has the power to make a difference The campaign has been designed to show how eBay and its community can together promote more sustainable commerce. As outlined on the campaign website Give. Good. Green is about building new ways to help you to make the world a better place. At the campaign website, www.ebaygivegoodgreen.com, users can choose from a menu of ways to take action - from investing on Micro Place, to joining the eBay Green Team, to buying on WorldofGood.com. Each action is rewarded with an entry into a competition to win a variety of prizes-including an exclusive $20,000 Tazzari electric car. Background on 'eBay's social initiatives: eBay Foundation contributes to the economic and social well-being of local communities by engaging our employees and everyone through charitable giving and volunteerism. EBay Giving Works offers consumers many convenient and trusted ways to give to more than 19,000 nonprofits while they buy or sell on eBay. WorldofGood.com connects consumers with ethically sourced and eco-friendly goods. Independent organizations called Trust Providers verify the positive impact of every product on people and our planet. Micro Place enables individuals to extend their budget to make a difference in the fight against poverty by making investments that fund loans to the world's working poor. EBay Green Team connects thousands of eBay buyers and sellers, who are committed to helping the world buy, sell, and think green every day. The Green Team is reducing, reusing, and recycling to make a big difference for the planet. EBay Facts Since inception, eBay Foundation has invested more than $19 million in non-profit organizations The eBay community has raised more than $165 million for charity to date WorldofGood.com by eBay empowers impoverished artisans in over 85 countries around the world More than 30,000 microloans have been funded by investments through Micro Place since its inception

In the last three years, buying pre-owned handbags on eBay had the same effect as planting more than two million trees On June 16th, 2010 eBay was honored by the Public Counsel Law Center at an awards dinner in Beverly Hills, Calif., for outstanding corporate social responsibility. eBay was chosen for the award because of its commitment to environmental responsibility, charitable giving, fighting poverty, ethical business conduct and employee volunteerism 6. Explain about network security management in e-bay? EBays online payment service, called PayPal, enables transactions nearly anywhere in the world. EBay proclaims trust between buyers and sellers as the key to the success of the marketplace. To standardize network security auditing and remediation processes for both internal and partner networks, eBay conducted an extensive evaluation of vulnerability management tools. EBay selected the on demand Qualys Guard solution for vulnerability management EBay OVERVIEW International Online marketplace eBay SCOPE & SIZE 8,600 employees; $3.3 billion in revenue (2004) BUSINESS PROBLEM Ensuring network security across eBay and networks owned by business partners OPERATIONAL HURDLE To efficiently manage data generated by eBays servers and by those in partner Networks in order to audit policies and identify any possible security issues.

SOLUTION Qualys Guard Enterprise WHY eBay CHOSE QUALYS Provides default standard for security. Easy web interface for management of all security data. Automated on demand audits accurately pinpoint vulnerabilities and provide fixes. Easy to use on eBay and partner networks Faster, simpler, cheaper security

7. Explain about m-commerce in e-bay? EBay is making a bigger play in mobile commerce with its revamped eBay now iPhone application, as well as plans to release an Android app and expand to more delivery zones in the future. The eBay 2.0 update to its eBay, now iPhone app makes it easier for consumers to shop on the go no matter where they are. The eBay app is changing the way consumers shop and companies such as Kate Spade are teaming up with eBay to reach consumers on a whole other level. Key updates through the updated app, consumers can pay via PayPal or a credit card at the time of order all within the app. Moreover, consumers can choose to scan the front of a credit card to eliminate having to type the 16 or 17 digits There is also a Shop While You Wait feature that lets consumers browse for their next purchase while waiting for a valet to deliver their current one. Additionally, the new app update also includes improved search and lets consumers find items they are looking for more quickly.

Mobile shopping The eBay now app was launching in October 2012. Currently, the same-day delivery service is only available in San Francisco, New York City and San Jose areas. However, eBay is planning on expanding the service to Peninsula, Queens and Brooklyn locations in New York. In addition, eBay is also looking to roll out its eBay now app to Android devices to further broadens its reach and accommodate more consumers. EBay believes that with this update, consumers are going to be able to shop more seamlessly, as well as find products more easily from a variety of retailers.

8. Summarize the case under following headings: 1. 2. 3. 4. Role of IT in the organization Host organization and its business partners Results achieved by use of IT Complete set of references (including web site references)

Role of IT in the organizationIT is heart & core of operation of company as company is based on e-commerce Web pages are developed and placed on internet to interact with customers Network security is used for safe online transactions; eBay brought PayPal an online payment system to add more trust for its operations and also increases its revenue. EBay has recently added mobile app to boot its m-commerce sales. Host organization and its business partners E-bay mainly creates a platform to link B2C and B2B customers. E-bay doesnt sell any goods, but sellers & buyers register them on eBay to sell & buy goods to others. So ebay will get commission from each sale. So mainly eBay business partners are small retail business, normal customers etc. It has included Qualys Guard as its main business partner for maintaining network security on the website and servers.

Results achieved by use of IT E-bay is a classic example of IT to build multibillion dollar company. EBay was started in a single room by its founder Pierre Omidyar who wrote code for an e-auction in year 1995. By 2012 its revenue is US$ 14.07 billion with net income of $2.6 billion. With only help of Information technology e-bay has created great empire with almost presence in 30 countries and millions of sellers and buyers.

References
http://en.wikipedia.org/wiki/EBay http://www.mobilecommercedaily.com/ebay-propels-mcommerce-efforts-with-same-day-delivery-appupdate-and-expansion http://optimistworld.com/CSR-Give-Good-Green-eBay-makes-difference http://www.qualys.com/docs/customers/casestud/eBay.pdf http://www.ebaymainstreet.com/de/news-events/ebay-wins-award-outstanding-corporate-socialresponsibility http://pages.ebay.com/community/aboutebay/overview/trust.html http://teamcaffeine.wikidot.com/ebay http://en.wikipedia.org/wiki/Criticism_of_eBay#Feedback_system