Case of E-Commerce Movement ebay-Free-Samples-Myassignementhelp

Question: Conduct a literature search on the reasons why incumbents are often beaten by challengers in business. Your team can take some examples of incumbents and challengers while writing the report. Answer: Introduction Incumbent is an individual who is answerable to all the activities at the workplace. They are basically the leaders in the market place and have huge market shares. It focuses on changing the environment by bringing better services. For example the producer of eBay that is an incumbent and Amazon is considered as challenger. It is an intermediate between the association of business and materials. If the supplier is currently in use than it is considered as incumbent as it is holding some place in the association. If some new supplier overtakes the duties of old supplier, then new supplier is termed as challenger and the old supplier is termed as incumbency (Antonelli, 2014). Apart from that there are many situations in which challenger beats incumbents. Challengers in the market are those who are providing same as mine. Incumbents are left overlooked but it is necessary to defend an incumbency by showcasing the performance. They set an aggressive target price and re-compute the price whenever new opportunity arises in the market. This report helps in knowing how altered version replaces the old methods (Vargo, Wieland Akaka, 2015). Other than that Disruptive technology is used to change the way in which entire business operates, it helps a small company to establish a larger organisations. Incumbents are beaten by challengers as the challengers tries to focus the market by maintain a good position in a short period of time. Incumbents dig the large sags to come next in the market but it is difficult for the incumbents to stand out in the market (Green-Pedersen, Mortensen Thesen, 2017). Incumbents have a lot of advantage as there name in the market, increased funds but it can be done by defining what an opponents is serving, what are the drawbacks and then defining an agenda to beat the challenger (Karthikeyan Jonsson, 2016). Literature Review Considering the case of Amazon and eBay, Amazon is an American company and is owner of the largest Internet retailer till date. It was started by selling the books online which was expanded to selling of video, audio, softwares, toys and jewelry etc. Amazon use the strategy of recording customers behavior so that offers or bonus could be provided to an individual accordingly (Haucap Heimeshoff, 2014). This also increases the value in the market. Whereas eBay sells the product to website only, its sales depend on the online auction of products only. This has various limitations as it charge fees from sellers to showcase their products on the website. Thus eBay has been beaten by Amazon in the market. It is true that incumbents beat challengers as they start planning at early stage, even though they have not beaten the challenger. They focus on what an opponent is doing in the market so that they plan accordingly to increase the budget and has a big spender. Thus research is a major s tage for challengers to beat incumbents. Similarly, Amazon has offered better job policies in the markets thus allowing the seller to showcase their products via amazon rather than eBay (Le-Nguyen Guo, 2016). In the views of (Syed Sudhakar, 2017), Amazon has built trust in the market while eBay had some trust issues like they were caught while selling fake goods, because of this reason there traffic have decreased. Plus Amazon has provided a good user experience as they reach out to customers rather than waiting that customers reach out to them. Amazon has created a user friendly platform that is providing easy access to products and serving trustworthy products to the customer. In the literature search, opinions (Bakshi, 2015) stated the reasons why incumbents i.e. eBay is beaten by the challengers i.e. Amazon. Thus Amazon has beaten eBay in the market and is one of the leading online retail in the world, has gained attention in the customer sector. The secret for Amazon success is they it focused on the ways to provide services to customers in low price and also focused on increasing the service by reducing the delivery time and serving best quality products, which was a drawback of eBay as they had a large delivery time. Amazon has crashed the market of eBay in terms of customer satisfaction, as Amazon is the first platform for buying products online. Researched on the eBay services, Amazon redesigned the plan to come ahead of eBay, in terms of rating 62% of clients choose Amazon wherein for eBay its just 12%. The best selection options are available on Amazon whereas eBay has lesser number of products that it why 79% choose Amazon, while eBay is the pref erred choice for 9% of respondents. eBay does not offer any terms of convenience to customers such as extra benefits but Amazon leads the survey in terms of convenience as it allows customers to choose the online retail juggernaut. The goal for challenger is defining the agenda by looking at the incumbent; the goal of beating incumbent is easy if challengers are well prepared. According to the opinion of (AlSheikh, Shaalan Meziane, 2017), eBay had the chances to survive and grow in the market but it took the wrong direction and was beaten by Amazon. EBay did not adapt to the changes in demands of customers and lacked in trust issues. Amazon used this drawback of EBay and planned the strategy to focus on selling products in low price but making sure that better services are offered to the customers. As for the case of eBay, the problem was not that it had lack of ideas; rather it made the wrong choices and failed to adapt itself with the changing market conditions (MitSloan, 2017) eBay was not able to cope up with the competition since it only excelled in selling the products to the retailers who promises to resell the good to customers having the features was somewhere a limitation in the market. Amazon worked on this and allowed to sell the products to a wide range of customers. Amazon made the work easier for seller as it writes all the description of the product to be sold, in case of eBay the customers need to manually describe the product. eBay failed to grasp more customers and continued to manufacture the same products which it was manufacturing earlier without any new innovations for offers for the user. EBay lacked in its features as no new innovative products where coming in the market (Pattie, Hartman Johnston, 2017). The reason behind its failure was Amazon who offered fast services to customers, as the services of Amazon where highly automated. Since, it requires less amount of time to perform basis tasks. On the other hand, most of the features of eBay are not automated because of which seller found it difficult to even track the item. According to (Erikson, 2016), eBay was slow in reacting to market changes. Earlier, people were comfortable using eBay which were easier to handle but eventually due to the emergence of Amazon who offered services in a better way market of eBay had fallen. Also eBay charges for selling their products on monthly basis where Amazon presented a better way to seller by charging the seller only when they actually make the sell. The possible customer base for Amazon is much higher than that of eBay. As amazon keeps on innovating new ideas and offers for clients like Amazon has rapidlyprolonged its services like discovering itsrolloutofAmazon Prime. Thus innovating new ideas is the major concern of getting more customers to the business and helps in growing rather than being sable. eBay is strictly a marketplace platform for users to conduct business but not for retailer, thus retailer need to search some other platforms. Amazon was in the phase to challenge the incumbents thus it offered a platform for both a marketplace and retailer. Amazon also offered new creative services like it has options for huge fulfilment of business, handling the fulfilment for every merchant on the site. Thus eBay lacked somewhere in the innovation thus Amazon launched AWS, it is a digital publishing division for selling their movie-streaming division, audio, books etc. to the user. In the views of (Willandia, et. al, 2017), Amazon is responsible for all the items sold to the customers so that issue of trust is resolved where in case of eBay dont own any products as it is auction site. Thus the quality of good are degraded which leads to customer dissatisfaction. It is true that there are chances of being scammed on eBay but Amazon worked on this a resolved the problem, gathering more customers. Amazon offered many reasons to customers to choose amazon over eBay as it makes shopping easier and offer a very easy interface to user. Also eBay is a time consuming process because seller need to wait until the auction is over thus it could not be used on regular basis for this amazon offered fast and easy services to customers. And it is considered as more appropriate for customers who repeat buying of products on regular basis According to the (Pepper Alves, 2017), incumbents are crushed by the new innovators and they eventually fail in the market. EBay failed in th e market due to various roadblocks which were solved by Amazon. EBay lost the customers interest as it has a very poor feedback facility and users could not offer a good experience. For this Amazon adopted a method to serve customers with good services and offer a great buying experiencing so that they can rely over amazon for a longer run. When Amazon came in the marketplace, eBay somewhere dismissed from the competition and didnt provide any new products to the users. On the other hand Amazon kept on inventing new products in huge quantity and selling the products in a lower cut of prices gathered new customers. Thus the way to beat incumbents is cut the price of product and offer more options to the customers. Also as eBay is an auction website it failed in the market due to poor auction description and using old products. Amazon worked on this and asked user to sit free and completed the product description by itself. In the perception of (Clarke, Chelliah Pattinson, 2018), eBay is beaten by Amazon, as eBay operates as a third party who needs to connect to the sellers for purchasers. Henceforth there is no inventory section of their own so there were various issues in the quality of goods as it just connected to buyers from sell. Amazon solved the issue of quality as it sells the products of every kind but ensuring that quality is met. Conclusion It can be concluded that incumbents are often beaten by challengers in the market. In case of e-commerce movement eBay was beaten by Amazon as it gained momentum in the market by embracing more customers by offering them more benefits. Both eBay and amazon stand out in the market, but amazon majorly provided the goods directly to the customers rather than using third party. Also challengers look for drawbacks of incumbents so that services could be offered to the customers to grow in the market. Better trust means better sale thus eBay lacked in the trust issues and lost friction of purchase from the buyers. Amazon offered a better buying experience got boomed in the market. 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