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1. Introduction

The electronic commerce business has increased and is based on the dealing of goods by electronic media such as television and internet. This kind of business is generally conducted with a set of easy payment options mainly conducted by cashless strategy. However, in case of the leading internet giant companies such as Amazon, eBay, and Alibaba, a tough competition can be noticed in case of both national and global scale. However, the competitive advantages of these companies are depending on different region and on their different business types. In the leading e-commerce business, e-Bay has achieved to penetrate in the Australian market with their unique marketing strategy. Thus, in the current study, the issue and opportunity of eBay in the Australian market have been portrayed systematically in the comparison with general e-commerce business model of the country.

2. Project objectives

The aim of the project is to determine the opportunities and challenges of general electronic business in the reference of business of eBay.

       To provide an overview of electronic business in both global and Australian market

       To analyse the opportunities and challenges of eBay in the Australian market

       To overview the existing challenges of electronic business in the country

       To provide effective recommendations for implementing strategic management

3. Project scope

The main scope of this project is to gain knowledge about the importance of e-commerce market. Along with this, in future, this research is going to be a quality resource for conducting other research work. Another scope of this study is to promote effective model of e-commerce business by overcoming the barriers and competitions. With the help of current project, the current challenges can be overcome with the provided recommendations.

4. Literature Review

4.1 Overview of electronic business

Apart from the Bricks and Mortar business model, the e-commerce business is propagating their tributaries since late 1970. According to Slack (2015), e-commerce business is a network-oriented business model which consists of Electronic Data exchange, e-mail, Electronic Bulletin board, Electronic fund transfer and other networking technologies. Wheelen et al. (2017) supported and commented that the main differences between traditional and e-commerce business is the communication process with the customers. In case of traditional business, a person to person direct communication is conducted whereas in case of e-commerce companies the main communication is conducted via electronic channel such as websites, emailing and many more. It has been noticed that almost 1.66 million people purchased goods in online in 2017 and the global e-retail market has achieved 2.3 trillion AUD. Among this statistics, eBay has gained 31 billion AUD on the global scale (abs.gov, 2017). On the other hand, Bettis et al. (2014) argued that the electronic business generally is of 4 types which are B2B, B2C, C2B and C2C. Among this business operation the eBay is a C2C business kind where the customers can post their personal advertisements in the websites and another customer can directly purchase the product. In this case, the buyer is another customer [Refer to Appendix 1].

However, the e-commerce business is having major three strategies which include the area, money and interrelationship with customers and suppliers. Thus, with the help of this factor, the e-commerce business is propagating their business in both developed and developing countries. On the contrary, Daspit et al. (2017) argued that many governmental and global organisations are also interested in improving an economy and decrease the poverty level of a country by selling the patent and exportable goods via e-commerce business. As for example, International Federation for Alternative Trade (IFAT), are introducing 100 organisations among 42 countries for marketing such products from lower income countries. They are selling almost 200 to 400 million AUD in every year. Million of SME firms and personal business have been conducted by the leading e-commerce companies (australia.gov, 2017). Among them, eBay is the platform for auctioning used and new products. On the contrary, Delina (2014) argued that there are still some gaps present in the awareness of people to use the e-commerce sites for purchasing. In case of the developing countries, this issue is predominantly present and the governments of these countries are focusing on the development of their SME industries.


7. Reference list

abs.gov (2017) Australian Bureau of Statics. Viewed on 8/4/18. Viewed From: http://www.abs.gov.au/

australia.gov (2017) Electronic commerce. Viewed on 8/4/18. Viewed From: https://www.australia.gov.au/information-and-services/business-and-industry/abn-acn-business-management/electronic-commerce

Bettis, R., Gambardella, A., Helfat, C. and Mitchell, W., 2014. Quantitative empirical analysis in strategic management. Strategic Management Journal35(7), pp.949-953.




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