Group (1)

Team
Bushra Naz 03
Akbar Ali Ansari 14
Muhammad Anis 15
Habib Ullah 26
Shakir Rashid 27
Azhar Bilal31
The Islamia University of
Bahawalpur
Bushra Naz
Roll No. 03
Agenda
1. Introduction
2. Overview of eBay
3. eBay’s Action Process
4. Product & Services
5. Analysis of
competition
6. SWOT
7. Strategies
8. Competitors
?
What is eBay?

A place to buy

A place to sell

A place to shop

A place to collect

A website

Like the real world in many ways

Free for buyers and inexpensive for sellers

How eBay Started?
The first item ever sold on the online
auction giant was a broken laser pointer
in 1995. At that time, eBay was a domain
name for Omidyar's website that was
named after his consulting company,
Echo Bay.
Founded September 3, 1995

Founder Pierre Omidyar.

Founder of eBay.
Responsibilities Oversees strategic direction
and growth
Chairman.
Headquarters San Jose, California, U.S.

Area Served Worldwide

Pierre Omidyar
(Chairman)

John Donahoe
(CEO)

Lorrie Norrington
(President of eBay Marketplaces)
Industry Auctions

Employees 15,500 (2009)

Website www.eBay.com
 Overview
 Founded in September of 1995, eBay is a global online marketplace
where practically anyone can trade practically anything.

 eBay has a global presence in 39 markets, including the U.S.

 eBay has approximately 276 million registered users worldwide.

 eBay users worldwide trade more than $2,039 worth of goods

on the site every second.

 At the end of Q4-07, eBay hosted approximately 532,000 stores

worldwide, with approximately 46 percent of stores hosted on eBay's
international sites.

 eBay members worldwide have left more than 6 billion feedback

comments for one another regarding their eBay transactions
Come to think of
Akbar Ali Ansari
Roll No. 14
 Auction
An auction is a market mechanism by which buyer
make bids and sellers place offers.
Auctions are characterized by the competitive nature
by which the final price is reached
Types of E-Auction
eBay offers several types of auctions.

•Auction-style listings
allow the seller to offer one or more items
for sale for a specified number of days. The seller can establish a
reserve price.
•Fixed price format
allows the seller to offer one or more items
for sale at a Buy It Now price. Buyers who agree to pay that price
win the auction immediately without submitting a bid.
•Fixed price format with best offer
allows the seller to accept
best offers. If a buyer submits a best offer, the seller either rejects
or accepts the best offer. If the best offer is not
satisfactory, a seller may submit a counter offer to the buyer.
Auction Process

Banking

(eB
ay
aid Dir
ect 4.Pay

9.Pass account
P
et
10
.G P ay Buyer
Seller /Cr
e dit
C ar d

5.Notify
)

i c a tion
6.
N ot if
oti
fy v ery N
pa
ym . Del i
dd ing
8 i
1. R en
t 2.B d
egi
ste ful Bi
s
r
ucces
3.S

7. Delivery

4. Pay ( Check / Money order)

Categories
On an average day on eBay…

A Diamond Ring is sold every two minutes

More than 3 Watches are sold every minute
21
5 Women’s handbags are sold every minute

22
 Over 3600 MP3 players are sold

23
A makeup product sold every 2 minutes
4,827 Fragrance products sold per day
A hair product sold every second
26
An automobile is sold every minute
Company Profile (Mission & Market)

eBaymission
eBay missionisisto
tohelp
helppractically
practicallyanyone
anyone
MISSION tradepractically
practicallyanything
anythingon
onearth.
earth.
trade

eBayenables
eBay enablestrade
tradeon onaalocal,
local,national
nationaland
and
internationalbasis.
international basis.ItItfeatures
featuresaavariety
varietyof
of
MARKET internationalsites,
sites,specialty
specialtysites,
sites,categories
categories
international
andservices
and services

eBay
eBay
Vision Willbe
bethe
theBest
Beste-biz
e-bizLeading
LeadingCompany
Company
Will
Financial Analysis (Revenue & Net
Income)

Revenue(1000$) Net Income(1000$)

9 ,0 0 0 ,0 0 0 3 ,0 0 0 ,0 0 0 2 ,3 8 9 ,0 9
8,727,362
8,541,261
2 ,5 0 0 ,0 0 0 1 ,7 7 9 ,4 7 7
8 ,5 0 0 ,0 0 0 4
2 ,0 0 0 ,0 0 0
8 ,0 0 0 ,0 0 07 , 6 7 2 , 3 2 9 1 ,5 0 0 ,0 0 0
1 ,0 0 0 ,0 0 0
7 ,5 0 0 ,0 0 0
5 0 0 ,0 0 03 4 8 ,2 5 1
7 ,0 0 0 ,0 0 0 0
2007 2008 2009 2007 2008 2009
Muhammad Anis
Roll No. 15
Competitors
eBay’s broad-based competitors include the vast
majority of traditional dept and general merchandise as well as
emerging online retailers

Yahoo!

U-Bid
Amazon
 1 2 3 4 5
eBay versus Yahoo for Sellers

eBay Yahoo
Maximum
Duration 10 Days 14 Days
Endin eBay auctions end at the time Yahoo allows you to set the
g the auction was created ending time within a one-hour
Time
based on the starting or reserve not range.
charge any fees for listing auction
Fee price of an item each time an item items to the buyer or seller
is listed
up to five percent of the final to the buyer or seller when an
Commis-
closing price item
sion
fee for reserve auctions is sold
Chances of
More likely Less likely
Buy & Sell

When aa page for the item gets createda page for the item is created
new Itemimmediately,but it can take several
immediately. The item is also added to
hours before the item gets added
Is posted theto
list of items and is searchable
the list of items and is searchable
immediately.
eBay versus Yahoo for Buyers

eBay Yahoo
Items Over 6 times more items A lot fewer items

Charging Yes No
for
posting
Unusual
More likely to find Not have as wide or deep of a selection
Thing

Titles or titles & Titles or titles &

Search
description description
Can limit within a category Can limit within a category
Brows By title or by picture By title or by picture
items (if designated as part of the
gallery )
Insuranc Automatic insurance for Not offer insurance
e sales
Space Not provide space for pictures:Provides free space for auction item
for You must place your picture files
Pictures, so more items have pictures
pictureOn some other sit For you to see
s
 Competitive Profile Matrix
eBay Amazon Yahoo
Success Factors Weight Rating Score Rating Score Rating Score

Brand Name 0.13 4 0.52 3 0.39 3 0.39

Quantity of Buyers 0.15 4 0.60 3 0.45 4 0.60

and Sellers
Convenience 0.16 3 0.48 3 0.48 3 0.48

Customer Service 0.12 3 0.36 4 0.48 3 0.36

Speed of 0.10 3 0.30 4 0.40 3 0.30

Transaction
Low Error Rate 0.10 2 0.20 3 0.30 4 0.40

Low Cost 0.14 4 0.56 3 0.42 3 0.42

Global 0.10 3 0.30 3 0.30 2 0.20

Distribution

Total 1.00 3.32 3.22 3.15

5 Force Analysis
(B2B, B2C, C2B,off-line…)

Threat
Threat of
of substitute
substitute

Products
Products or
or services
services

Bargaining
Bargaining power
power Rivalry
Rivalry among
among
Buyers
of
of Suppliers
Suppliers Existing
Existing Competition
Competition
(Yahoo, Amazon (GE..)
(GM, HP…)
…)

Barriers to entry
Habib Ullah
Roll No. 26
 STRENTH WEAKNESS

OPPERTUNITIES THREAT
STRENTHS
 Largest online trading forum
 Partnerships with international companies
 Entertaining site
 No need for the traditional sales force
 Over 27,000 different categories
 Publicly Traded
WEAKNESSES
 Difficult to measure illegal activity on site
 Inability to penetrate some foreign markets
 Technology malfunctions
 Lack of in depth descriptions of products
OPPERTUNITIES

 Changing lifestyles of people

 Increasing use of the internet
 Expand community services
 Acquisition of Yahoo.com
 Continued international expansion
THREATS
 Thieves
 Increasing number of online auction sites
 Rapid growth of Amazon.com
 Increasing number of online stores
 1/3 of internet users already registered
on eBay
Shakir Rashid
Roll No. 27
Business Model (reason for eBay’s success)

Largest
Largest Online
Online Trading
Trading Forum
Forum

Compelling
Compelling Trading
Trading Environment
Environment

Trust
Trust and
and Safety
Safety Programs
Programs

Cost-Effective,
Cost-Effective, Convenient
Convenient Trading
Trading

Strong
Strong Community
Community Affinity
Affinity

Intuitive
Intuitive User
User Experience
Experience
Analysis of eBay’s Strategy & Business Model

Before eBay could begin to compete in the online

auction industry a strategy and business model
needed to be developed. eBay had to define the
businesses they would be competing in and how
they would compete in those specific businesses.
They also needed to define how they would be a
successful service to their customers.
Corporate level strategy
eBay’s corporate level strategy was to
become a diversified business.
They wanted to diversify not only the
products they offered but also their
customer base and global reach.
By using the eBay, service you can find
virtually anything you are looking for.
Business Level Strategy
eBay competes in the online auction industry using a broad
differentiation strategy. Although they may not be the most
inexpensive online auction site, they have the largest variety of
products offered. They also appeal to a larger group of consumers
that include individual sellers, small entrepreneurs, and corporations
all over the world. eBay achieves broad differentiation through their
strong eBay community, a global reach not matched by any
competitor, and a category span of 27,000. These aspects of the
eBay service among others set their company apart from the rest.
Customers see the value in using the eBay service. This is why eBay
has become so successful.
eBay’s Broad Differentiation Strategy
• Variety of products offered
• The eBay Community
• The eBay Website
• The eBay Brand Name
• The eBay’s Global Reach
Azhar Bilal
Roll No. 31
Recommendation
Services

Depending
Dependingononthe
thecategory
categoryof
ofproduct
product
Back
BackGround
Ground Increasing
Increasingof
ofCommunity
Communitypower
power
Trust
Trustissues
issuesbetween
betweenbuyers
buyers &&sellers
sellers

Target
Targetkey
keyproduct
productcategories
categoriesfor
forspecial
specialusers
users
Develop
Developnew
newcommunity
communitytools
tools
Things
Things Enhance the community for women and old peoples
To  Enhance the community for women and old peoples
To  Add new features and services to help trade with greater ease
Do  Add new features and services to help trade with greater eas
Do  Expand Value-Adds Services ( community purchase)
 Expand Value-Adds Services ( community purchase)
Increase
Increasethe
theTrust
Trustand
andSafety
SafetyPrograms
Programs
Recommendation

Globalization

Growth
Growth rate
rateDecreases
Decreases
Back Ground
Back Ground To utilize the advantages of internet in globalization
 To utilize the advantages of internet in globalization

Enforce
EnforceMarketing
Marketingin inforeign
foreigncountries
countries
Things
Things Provide
Provideunified
unifiedsite
siteand
andURL
URLinineach
eachcountry
country
To
To Introduce
Introducecountry-specific
country-specificservices
services
Do
Do Choose
Choosefrom
frombuilding
buildingsolely,
solely,acquiring
acquiringaacompany
companyor
or
partnering
partneringwith
withstrong
stronglocal
localcompanies
companies
Recommendation

Business Model & Strategic alliance

Limit
Limitof
ofP2P
P2Pmarket
marketsize
size
Back
BackGroundGreat
Ground Greatpotential
potentialmarket
marketof
ofB2C
B2Cand
andB2B
B2B
AAnew,
new,rapidly
rapidlyevolving
evolvingand
andintensely
intenselycompetitive
competitivearea
area

 Have
Haveaapartnership
partnershipwith
withbank,
bank,c-card,e-mopney,
c-card,e-mopney,mobile
mobile
Things
Things communication
communicationcompany,
company,google
googleetc
etc
To  Expand
Expandgradually
graduallyBusiness
Businessmodel
modelfrom
fromP2P
P2Pto
toB2C
B2C
To
Do  Develop
Developthe
theeBay's
eBay'sprivate
privatebrand
brandproduct.
product.
Do
Recommendation

System Infrastructure

15
15System
Systemdowns
downsbetween
betweenAugAug1998
1998and
andNovNov1999
1999
Back
BackGround
Ground The
Thethreat
threatof
ofHacking
Hacking((Deny
Denyof ofservices
services))
The
Thecost
costof
ofsystem
systemfailure
failureis
isso
sobig
big

 Build
Buildbackup
backupsystem
systemfor
forimportant
importantsystem
systemsuch
suchas
asCPU
CPU
Disk,D/B,
Disk,D/B, Network
NetworkSystem,
System,Power,
Power,Communication
CommunicationLine
Line
Things
Things
Downsize
Downsizethethecomputer
computersystem
systemfrom
fromMainframe-level
Mainframe-levelSun
Sun
To
To to
toWin2000
Win2000ororLinux
Linux((ex:
ex:Google
Googlehas
has4,000
4,000Linux
Linuxserver)
server)
Do
Do  Acquire specialist for System, DB, Network,Program and etc
 Acquire specialist for System, DB, Network,Program and etc
Invest
Investmore
moremoney
moneyon onSystem
SystemInfrastructure
Infrastructure
What are the uncertainties in e-Biz

– Rapid technology innovation in web and mobile

: Searching technology/mobile trading
– No homogeneity global market
: Portal site May be more powerful than eBay.co.xx
– Multimedia innovation force much investment
: Leverage effect more advantageous to portal
– The speed up of the Off-line shop’s innovation
: All off-line shop operation on-line shop
– e-money payment system will be show to us
: They will be most powerful alliance group

But
Our Recommendation will prevent uncertainties
change