The consumer losses within the online auction segment may shed a negative public image on the
safety or reliability of online auctions for consistently low prices. The focus around transparency
with customer relationship initiatives by the vice president of marketing will aid the management
of this risk. (Deblauwe, 2013)
Because of the low industry concentration level and high growth rates and general nature of the
relatively low overhead for the industry, the business can enter the market with less capital
compared to many other industries requiring research & development or large purchases
The general market is skeptical due some consumers having a loss on orders, while others
obtaining a substantial deal. Establishing a consumer relationship to overcome this perception,
the company will need marketing and promotions, which will demand more resources for
marketing. The business will need to be creative in its approaches to overcome these threats and
compensate its weakness of low capital relative to several other electronics retailers.
EBay –2012 FY Revenue Approx.: $ 14 B, Market Share: 14%
With 180.6 million registered users, 71.8 million of them are active bidders in 2005, makes eBay the
master of online auction market, 1.9 billion items were listed. (Shmueli & Jank, 2006).
This auction at this website is done through different criteria, buyers can bid with their desired amount,
where highest bidder takes the item, and this is why eBay is not among direct competitors, even though
eBay is a huge player in the auction industry, with strong brand awareness and trust on using eBay’s
platform to buy products from third parties.
For better understanding of the market and position we have analyzed some of the key market players
which are as follows:
QuiBids - 2012 FY Revenue Approx.: $ 3.72 M, Market Share: 4.1%
QuiBids is a market leader with Matt Beckham as a CEO; the company has been established in October
2009 and is located at Oklahoma City OK 73106 USA. Since past three years the company has become
major player in the penny auction industry with 145 employees, and offers wide range of products.