Free Sample: E-commerce arena paper example for writing essay

E-commerce arena - Essay Example

The main purpose of this report is to analyze the operation of two companies (Amazon and eBay, leaders of the e-commerce arena) in the same sector, e-business in particular. By comparing and contrast their financial and non-financial performances as well as other related elements, this report aims to outline the strengths and weakness of each company, exploring the potential and opportunities of both parties ,and giving possible suggestion to their future investors.

Amazon and eBay are widely acknowledged as the two giants in the e-business platform, possessing a huge number of loyal customers with the help of the ever-accelerating advances of the Internet. However, aside from their own financial conditions, obvious differences exist in the two companies in its marketing strategies, social activities, and human resource management and so on, which are the basic elements of the whole operation of daily business.

Therefore, it is meaningful and practical to identify the current similarities and distinctions between Amazon and eBay, since it can enhance the full understanding of the operation process of a whole organization and point out the suitable management style according to the organization’s own circumstance. Most importantly, except for the findings themselves, the critical thinking and analyzing way can be also exercised intensively, thereby laying the solid management foundation for the future use.

This report firstly lists a general introduction of the two companies, followed by the detailed analysis of both financial and non-financial performance. This done, some possible potential from several aspects are explored and finally the conclusion is made. 2. 0 Introduction To evaluate the operation of an organization, financial performance and non-financial performance play pivotal roles in this area, supplying both direct and indirect indicators to evaluators.

Specifically, financial analysis which concludes various types of analyzing methods has long been regarded as a comparatively comprehensive reference tool for managers, investors and the financial professional to gain the correct information and reflections on an organization. While the non-financial performance which represents an organization’s performance, products or service, market share, human resource, etc. is also the precious information to get access to the other crucial parts of operation, contributing to the financial performance in turn.

Meanwhile, aside from offering extra data to financial professional, the non-financial elements allow non-financial staff, professional in other areas in particular, to explore characteristics from various angels. In light of analysis from the two aspects, it is easy to find out the potentials of an organization, showing the meaningful signals to investors to make decisions. Amazon. com and eBay can serve as ideal examples to reveal its differences and similarities in their financial and non-financial performance, providing some key clues to be explored in order to pursue better comprehension of operation in the ever-changing market.

3. 0 Companies’ name and industrial classification As the two giants in the e-commerce, online shopping arena in particular, Amazon. com and eBay have changed the traditional business style and taken up the majority of the online retailing market in the world, where business is conducted mainly through electronic date interchange (EDI) technology of the internet and logistics in supply chain. In 1994, Amazon was founded as a simple book store online in America. However, at present it has established its separated websites in multiple nations.

Besides, Amazon. com possesses its own comparatively mature logistical system for many corporations involved in logistics to draw on. EBay, a world famous online auction and shopping website, originates from California in America in 1995. It supplies a platform on which B2C module and C2C module are supported to benefit both individuals and small companies. Up to now, eBay has operated websites in other thirty countries worldwide and adopted local culture, developing other business such as StubHub, PayPal and Kijiji. 4. 0 Major business activities

Amazon has consolidated its status as the largest online retailer in America by starting as an online bookstore and then diversifying its products from CDs, video games and electronics to furniture, toys and food. On May 15th, 1997, Amazon. com issued its first public stock by means of IPO (Frey and Cook, 2004). In 2005, Amazon entered S&P 500 index (Regan, 2005). Amazon has also incorporated plenty of products and service into its online shopping model. A case in point is the Honor System, which was used to collect donations from online customers since 2001but discontinued in 2008 (Gunn, 2008).

As the online auction website, eBay offers a platform where people and companies are able to sell and buy a variety of products and service. Beginning with the name of Electronic Travel Auction, it officially changed the name to eBay in 1997. By keeping on expanding the categories of items of business, it grew dramatically and purchased IBazar, a similar European auction website, in 1995 as well as PayPal in 2002 (Regan, 2002). EBay cooperated with the sales of Skype in 2009 and created the record of $ 2. 75 billion (Robin, 2009).