Analyzing Managerial Decisions: eBay.com
Chapter 10 - “Analyzing Managerial Decisions: eBay.com” page 334 Brickley, J., Smith, C., & Zimmerman, J. (2009). Managerial economics and organizational architecture (5th ed.). New York: McGraw Hill/Irwin.
Your response should focus on answering the question at the end of the case and providing explanation of your answer from reading the chapter. Case Assignments: All questions should be answered for this case study. If calculations would enhance your commentary, it is strongly urged that you include these calculations. The length of a case study is determined by how well you include the requested information. Succinct, complete answers that show that you have prepared your writing with thought and reflection are preferable to answers that ramble and are not reflective of the course content. A complete, well-developed response can be given in several paragraphs or a page depending on the question and your ability to articulate your answer. You are encouraged to use textbook concepts listed in chapter outline as you attempt to explain in your own words the answers to the assignments
Analyzing Managerial Decisions: eBay.com
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1. How does eBay create value?
According to the Chapter 10 of the book "Analyzing Managerial Decisions: eBay.com", the company creates value by bringing buyers and sellers in a virtual platform that enables them to transact business. People are able to sell or buy goods or market their products (Brickley, 2009). In this online forum, there are many buyers who are ready to shop and sellers who want to sell. The two parties have access to each other and transact without the interference of the company. eBay, makes profit by charges some fees to the transacting party for the privilege of selling via their online platform (Brickley, 2009).
2. What potential contracting problems exist on eBay?
The main challenge is fraudulent sellers who poses as genuine sellers thereby selling inferior or damaged products. There is also the possibility of selling banned items through the eBay website. Another problem is failure of a seller to deliver the product to the buyer or the buyer refusal to pay for delivered goods. One of the challenges that eBay faces is to distinguish between genuine sellers and buyers. Even though the sellers and buyers using the website are required to sign a user agreement, the company has no way of identifying fraudulent or damaged goods through the posted photos (eBay.com, 2015).
3. How does eBay address these problems?
Some of the measures that eBay has taken to address these problems include offering insurance t...
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