This document is a report analyzing the New Zealand company Trade Me (TME) and its adoption of e-business. It discusses how TME started as an online auction platform in 1999 and has since grown to be one of New Zealand's largest companies with over 2.5 million active users and 250 employees. The report profiles TME's operations and portfolio, and analyzes how it has strategically expanded into new areas like daily deals and travel sites. It concludes that TME is well-positioned for continued growth if it can provide New Zealand consumers with a wide range of goods at competitive prices both domestically and internationally.

1. REPORT PREPARED FOR: ROBERT DAVIS
BY: GARIMA KASHAP
POSTGRADUATE DIPLOMA IN BUSINESS
APMG 8119: DIGITAL ENTERPRISE
2012
ASSIGNMENT 1 – TRADE ME (TME)
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2. INTRODUCTION
The Internet has created a new set of rules in many ways with greater transparency,
cost efficiencies, more consumer power and choice, changing strategic alliances and
new partnerships. Marketers have to come to terms with new technologies and new
jargon. How will disintermediation affect an organisation? Will online auctions open
up business to business (B2B) opportunities or drive prices down to uneconomic
levels? Established businesses have to wrestle with the strategic headache of deciding
their level of online commitment and how it compliments their traditional operation.
GLOBAL MARKETING
At the global marketing level, the most profound change is the orientation of the
company toward markets and associated planning activities. At this stage, companies
treat the world, including their home market, as one mar­ket. Market segmentation
decisions are no longer focused on national borders. Instead, market segments are
de­fined by income levels, usage patterns, or other factors that often span countries
and regions. Often this transition from international marketing to global marketing is
catalyzed by a company's crossing the threshold of more than half its sales revenues
coming from abroad. The best people in the company begin to seek international
assignments and the entire operation—organizational structure, sources of finance,
production, marketing, and so forth—begins to take on a global perspective.
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3. EXECUTIVE SUMMARY
 This assignment outlines the key results from e­business practice in New
Zealand based organization with a state of the interview based survey. The
results focused on the adoption and implementation of e­business in
particular organization Trade Me [TME] which is selling general things like
computer, clothing and books.
ADOPTION OF E-BUSINESS
 Computer is basic know a days is every company specially for marketing
basically with basic activities e.g. email and information exchanges through
this it can provide the considerable scope for further development of e­
business activities.
 Trendily most of the companies had their own sites.
 Only few websites were capable to secure transactions and receiving
payment online.
 Present activities have low scale for online purchases and webs sales.
 Inspirations and motivations for e­business activities reflected the
strategies, performance, efficacy and position for improving the company.
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4. ADOPTION OF E-BUSINESS IN NEW ZEALAND
 The adoption of E­Business in New Zealand was considered in this survey by
examining the use of computers for business activities, the types of business
activities performed electronically, the existence of websites and their features,
motives for involvement with E­Business initiatives, and the most important impacts
of E­Business on firm performance.
PROFILE OF THE COMPANY
 Trade Me (TM) is a one of the leading e­commerce site. Sam Morgan established it in
1999 and in very short period it grew up very much within the New Zealand largest
companies. According to the online auction platform, this company has 2.5 million
active users: 1.5 million auction listings and a staff compliment of 250.
 Trade Me has grown into company with a portfolio of Internet businesses that
stretches from foundation business line of general items – which makes up roughly
half revenue ­ to include classified services for automotive sales, real estate and
employment which accounts for 35 per cent of revenue.
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5. SHOWING GROWTH OF THE COMPANY
Trade Me recently announced a partnership with e-commerce service provider Channel
Advisor for accelerate offshore sellers coming into Trade Me and improve the range of goods
and prices for buyers.
Trade Me also expects growth from its younger businesses, such as the daily deals site Treat
Me or its three travel and accommodations sites, as they push towards maturity. The
classifieds business, an area where online still lags behind print, has growth potential as long
as Trade Me makes sure they provide as much value as they can to advertisers.
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6. CONCLUSION
 Trade Me is well positioned to capitalise on new online models and
industries in New Zealand. It has good technological capability, a large and
engaged audience, a good brand and reputation ­ putting it in a good
position to capture new business lines. The New Zealand consumer is quite
comfortable, these days, buying direct offshore ­ either because there is a
greater range available or there is a compelling price. Challenge of the
company is to get that sort of range on Trade Me for a comparable price. If
it does that they will be in a very good position. If it does not get that
inventory on [Trade Me] then the consumers will quite happily go to
offshore websites.
REFERENCES
 Bandyo­padhay, N. (2002) E­commerce, Concepts, Context and Consequences, McGraw Hill Maidenhead,
Berkshire.
 Turban, E., Kind, D, Lee, J, Warkentin, M & Chung, HM (2002) Electronic Commerce­ A Management
Perspective, Pearson Education Inc, Upper Saddle River, New Jersey.
 Kotler, P, Armstrong, G., Saunders, J & Wong, V. (2001) Principles of Marketing, 3 rd European edition, Pearson
Education Ltd, Harlow.
 Richard Gay, Alan Charlesworth,Rita Esen (2011) Online Marketing – A Customer LED Approach, Oxford
University Press.
 Berryman, E. 2000. Getting on with the Business of E-Business. PriceWaterhouseCoopers
www.pwcglobal.com/ retrieved 21 July 2012.
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