Key Success Factors of Ebay

Key Success Factors: The factors that are a necessary condition for success in a given market.

PINPOINTING INDUSTRY

KEY SUCCESS FACTORS

• KEY SUCCESS FACTORS (KSFs) spell difference between

o Profit & loss

o Competitive success or failure

• A KEY SUCCESS FACTOR can be

o Specific skill or talent

o Competitive capability

o Something a firm must do to satisfy customers

eBay KSF:

1. A niche and pioneer player in the internet market, enjoying first mover advantage.

2. Closest competitor is Amazon.com; nevertheless, the firm's cumulative profits remain negative since inception.

3. eBay’s revenue generated through listing service, whether or not a successful transaction occurs.

4. Sustenance, growth and profits through global diversification.

5. PayPal, a secured online payment system was acquired by eBay, which account for more than 50% of payments at eBay.

6. PayPal threw Citibank’s C2IT and Yahoo’s PayDirect out of business by 2004; Thus generating more profits per transaction.

7. Continuous upgrade and adaptation to technological and security needs has made a eBay a safer and trusted “market place”.