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Strategies & Market Trends : Gorilla and King Portfolio candidates - Moderated
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To: Thomas Mercer-Hursh who wrote (992)6/27/2004 5:57:36 PM
From: tinkershaw  Read Replies (2) of 2955
 
And, how is it open unless other software developers are connecting to it

It is open because by placing objects for sale and making bids people are freely utilizing and adding to the product. The more people that freely utilize and add to the product the greater becomes the competitive advantages.

EBAY is not MSFT with an OS and software developers developing around it, EBAY is MSFT with an OS where buyers and sellers develop around it by participating on the open architecture (ie, people can freely utilize it to buy and sell product) and it is proprietary to EBAY (EBAY gets a cut from every sale).

As for price competitions, Yahoo! at least use to offer its auction site for free. I believe AMZN also use to try to discount EBAY, and EBAY went, so what!

I don't know the current competitive pricing environment, but what is clear, is that there has been plenty of opportunity for someone else to come along and compete by a lower price and either no one has or it just does not matter as the shear size of EBAY marketplace is such that one is willing to pay much more to be a part of its system than it is to switch elsewhere.

Like with MSFT's OS, EBAY does not face much price competition.

Tinker
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