al auction house that failed to meet performance expectations. At this point, eBay needs to focus on maintaining its strategy of being a distribution channel for any number of sellers, and maintaining its dominant position as the site of choice for buyers and sellers. Its relationships with corporate sellers should also be strengthened in order to continue to bolster its position within the market and to build more lucrative relationships due to the higher prices charged by these sellers, or because of the increased volume that corporate sales can bring to the site. The company can also set up a second branded site to cater to the needs of traditional small auction buyers and sellers who may be feeling alienated from eBay as the company continues to court corporate buyers and sellers.
Although the World Wide Web was, at one time, expected to bring about a revolution in management--resulting in the so-called "new economy," companies learned that old-fashioned attention to profitability was still required for success. One of the few companies that did have a new approach to doing business was an online auction house that survived by providing a forum for strangers to sell goods to other strangers. From these inauspicious beginnings, eBay has become a commercial powerhouse, and has expanded its operations around the world.
Today, eBay's mission is "to provide a global trading platform where practically anyone can trade practically anything" ("Company Overview," 2003). Founded in 1995, eBay began its existence as an on line auction service. Sellers (who must register with the site) list items for sale and, optionally, a minimum price (as well as a reserve price below which they will not sell the item). Today, sellers also have the option of setting a fixed price ("Buy It Now") that enables customers to purchase the item at a predetermined price and eliminate the bidding process. Buyers have a predefined period of time durin...