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    Case Study

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    Arju Basnet
    This document contains the responses to four questions about eBay drop-off stores. It discusses that few owners likely conducted feasibility analyses before opening their stores. They were overoptimistic and ignored the need for market research. It also describes how the idea of drop-off stores seemed enticing but many actual businesses struggled due to a lack of feasibility analysis. People still used these stores late in their decline to sell low-priced goods or save money. Startups can learn from this experience the importance of feasibility analysis to avoid potential obstacles and risks.

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    Case Study

    Uploaded by

    Arju Basnet
    2K views7 pages
    This document contains the responses to four questions about eBay drop-off stores. It discusses that few owners likely conducted feasibility analyses before opening their stores. They were overoptimistic and ignored the need for market research. It also describes how the idea of drop-off stores seemed enticing but many actual businesses struggled due to a lack of feasibility analysis. People still used these stores late in their decline to sell low-priced goods or save money. Startups can learn from this experience the importance of feasibility analysis to avoid potential obstacles and risks.

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    This document contains the responses to four questions about eBay drop-off stores. It discusses that few owners likely conducted feasibility analyses before opening their stores. They were overoptimistic and ignored the need for market research. It also describes how the idea of drop-off stores seemed enticing but many actual businesses struggled due to a lack of feasibility analysis. People still used these stores late in their decline to sell low-priced goods or save money. Startups can learn from this experience the importance of feasibility analysis to avoid potential obstacles and risks.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views7 pages

    Case Study

    Uploaded by

    Arju Basnet
    This document contains the responses to four questions about eBay drop-off stores. It discusses that few owners likely conducted feasibility analyses before opening their stores. They were overoptimistic and ignored the need for market research. It also describes how the idea of drop-off stores seemed enticing but many actual businesses struggled due to a lack of feasibility analysis. People still used these stores late in their decline to sell low-priced goods or save money. Startups can learn from this experience the importance of feasibility analysis to avoid potential obstacles and risks.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 7

    Balmiki Lincoln College

    Name : Arju Basnet

    Program : Bachelor in Business

    Administration

    Lc No : Lc00022000237

    Semester/Year : 3rd sem / 2nd year


    Course : Entrepreneurship
    Assignment : Subjective Question
    1. How many owners of eBay drop off stores do you think conducted
    a feasibility analysis before they opened their stores? If you think
    the number is low, what’s the explanation?

    None or very few numbers of owners have conducted a feasibility


    analysis before opening their stores. They just went with the idea
    and started the store. Once the numbers of these stores were
    rapidly growing but very few existence till date is the proof that the
    owners have not analyzed how feasible the stores would be.

    I think the number of owners conducting feasibility analysis were


    less because of the following reasons:
    The owners were over-optimistic and thought they had more
    expertise in this area; they ignored the remark and failed to conduct
    market studies. They also assumed that since the eBay had been
    selling and had performed well, the new eBay stores would also
    headed for success. They ignored that feasibility analysis for the
    product, target market, organization was necessary. So, haven’t
    done any primary or secondary research. They did not consider the
    willingness of people to pay commission for high amount products.
    In short, the consumer behavior target market, was not analyzed.
    Most people don’t like handling over 35-40% of the sale to someone
    else. The owners also didn’t look after financial feasibility. The cost
    of processing an item was the same whether it was for the item of
    50$ or of 15000$. The processing for each item included talking to
    the customer, researching a price, writing a description, posting
    photos and item on eBay, following the auction, shipping the
    product to the buyer, getting paid by the buyer and paying to the
    customer. Not much money would be left if they have to sell the
    items of low range which means a very few profit margins for the
    owners. Undoubtedly, many owners failed and quit their business.

    2. Describe the difference between eBay drop-off stores as an “idea”


    and as an actual business. Is it possible for something to be an
    enticing business idea but a poor business?
    EBay drop-off stores as an idea and as an actual business has some
    sort of differences. Idea was just a logical thought which was not
    implemented but eBay drop off stores as an business was practical.
    People could get facilities, services and advantages from it.
    EBay drop-off stores as an idea was alluring but as a business was
    not so tempting. Idea was good as it was initiated for those people
    who don’t want to hassle with creating accounts and could sell
    items on a consignment basis but in actual business due to lack of
    feasibility study the business couldn’t perform well.
    EBay drop-off stores as an idea was limited within certain people but
    as an business it had spread across many countries.
    An actual business had to cope up with different obstacles within its
    operations but idea couldn’t find any problems .

    Yes, it is possible for a business idea to be enticing but a business to


    be poor. The best example is eBay drop off stores itself. The lure of
    EBay drop-off store idea is that nearly everybody has something in
    their closet or garage they’d like to sell on eBay. So it was started for
    those who are not willing to set up an account on eBay and then
    listing the price and product and follow the auction. After the
    implementation of business idea into an actual business, there were
    many problems as many owners didn’t conducted feasibility studies.
    At last, many businesses could perform well and had to quit the
    business.
    3. Why do you think people bought into eBay drop-off stores toward
    the end of the downward spiral of the category?
    Downward spiral is a situation in which business continuously
    decreases or gets worse and worse. People bought into eBay drop-
    off store to sell those types of goods that has low range. Selling low
    price products to the owners, they only have to give up few
    amounts. They would be ok giving up the commission amount than
    to hassle in opening eBay account, listing the products and follow
    the auction and to just keep the items in house ideal. The next
    reason, I think people came into eBay drop-off stores even toward
    the end of downward spiral because not everyone is financially
    sound. An average earning people cannot afford all new items that
    might be of high cost. They would rather buy second hand products
    then to spend their earning impulsively buying a new one. Buying
    anything used is less expensive than the new alternative. Different
    people have different perception. They would love buy used items
    and save other amount. So to buy they must visit eBay drop-off
    stores.
    4. What can a start-up learn from the experience of the eBay drop-off
    store industry about the importance of feasibility analysis?
    From this eBay case study, startup can definitely learn that
    conducting feasibility analyses before starting any business is a
    most. A feasibility analysis will help a business determine whether
    the idea is worth pursuing or not. It helps for the prediction of the
    success or failure of a new business venture. It helps to identify the
    potential obstacles that may arise while running a business and
    hinder its operations.
    In this case study, eBay drop-off stores industry failed to do how
    feasible the stores would be. They didn’t do any primary and
    secondary research about financial feasibility, target market
    feasibility, operational feasibilities or any other feasibility. So the
    eBay drop-off stores industry faced different difficulties that created
    obstructions during its business operations. They couldn’t find the
    solutions for these problems; eventually many owners failed and
    quit the business. From this, start up can learn that in order to
    sustain a business for a long period of time a feasibility study is
    important. They are significant for business development. It is
    important as it helps for risk mitigation because it helps with the
    contingency planning and risk treatment strategy development. It
    means conducting a feasibility study will identify a risk and the
    owners can find possible solutions about the risk that would occur in
    a business.

    *THE END*

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