SSE Strategy Ebay_2011

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  • Vision: core ideology: unchanging, true identity of a company, glue that holds company together -> consistent identity of a company no matter what happens Envisioned future: long term goal (i.e. 10 to 30 years from now) -> Nikes was to crush Adidas; catalyst for team spirit, engage people Mission: e.g. for an insurance company -> define ist mission as providing financial security to consumers or for Disney -> to make people happy
  • Strategy: in which strategic business fields do I operate? Behavior of the company on the market in order to be better than competitors (especially stressed by Porter that strategic positioning requires a unique way as a source of competitive advantage ) Part of a business model: choices and consequences -> variety of distinct BMs possible -> Choices: made by the management about how the organization should operate, e.g. Ryanair -> secondary airport; consequences: low airport fees Difference? Strategy and business model are related but distinct concepts -> strategy entails designing business models to allow the organization to reach ist goals. Business models are reflections of the realized strategy. -> the process of a business model design is part of the strategy Business model as the reflection of the realized strategy ... Am Ende der Slide –> from that follows that strategy may conincide with the organization‘s business model (whenever there are no contingencies to analyze but the market is stable)
  • eBay‘s mission A place to buy: Get nearly anything you need or want at reasonable prices (either used or new); get a lot of stuff you would not get in regular stores or in online stores A place to sell: almost anything will sell on eBay if the seller is flexible with the price
  • Business model is about: Logic of the firm, the way it operates and how it creates value for its customers and stakeholders choices and consequences
  • auction clearinghouse with variable prices (dependent on the auction) instead of an online retailer (such as Amazon in the fixed-priced marketplace) -> in that way eBay operates as a middlemen Retailers: often have a better shopping experience and better customer service plus they do not have the risk of fraud Small sellers: casual sellers (private ones), power seller: professional industrial sellers that sell their products on a grand scale
  • SSE Strategy Ebay_2011

    1. 1. eBay Media Management Spring Term 2011 Christine Alff 40202, 21st of January 2011
    2. 2. Vision and Mission <ul><li>Vision </li></ul><ul><li>Defines what an organization stands for and why it exists (core ideology) and the long-term goal (envisioned future) (Collins & Porras, 1996) </li></ul><ul><li>Realization is tangible but also distant enough to create enthusiasm (Grimm, 2008) </li></ul><ul><li>Mission </li></ul><ul><li>Spells out the underlying motivation for being in business in the first place (Collins & Rukstad, 2008) </li></ul><ul><li> What are we here for? </li></ul><ul><li>Ideological pillar of the company (Grimm, 2008) </li></ul><ul><li>Transfers long-term general goals (Grimm, 2008) </li></ul>21st of January 2011 – SSE Strategy – eBay 2011
    3. 3. What is Strategy? <ul><li>Strategy </li></ul><ul><li>choice of business models through which the firm will compete in the marketplace (Casadesus & Ricart, 2010) </li></ul><ul><li>i.e. choosing a way to compete, a way to operate and create value for stakeholders </li></ul><ul><li>Business model </li></ul><ul><li>Logic of the firm, the way it operates and how it creates value for its customers and stakeholders </li></ul><ul><li>choices and consequences </li></ul><ul><li>Difference?? </li></ul><ul><li>Changes in the business model -> Business model ≠ Strategy </li></ul><ul><li>Strategy is more than just the selection of a business model, it is a plan on how business model should be adapted in case of change </li></ul>21st of January 2011 – SSE Strategy – eBay 2011
    4. 4. Mission <ul><li>What is eBay here for? </li></ul><ul><ul><ul><ul><li>eBay ‘s mission statement: </li></ul></ul></ul></ul><ul><ul><ul><ul><li>“ We help people trade practically anything on earth.” (Bnet, 2000) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>eBay is </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>A place to buy </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>A place to sell </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>A place to shop </li></ul></ul></ul></ul></ul>21tst of January 2011 – SSE Strategy – eBay 2011
    5. 5. Business Model <ul><li>“ eBay is the world's largest online marketplace, where practically anyone can buy and sell practically anything .“ ( Ebay, 2011 ) </li></ul><ul><li>eBay : </li></ul><ul><li>Online auction business model: participants bid for products and services over the Internet </li></ul><ul><li>Buying and selling in an auction format via special software </li></ul><ul><li>Marketplace revenues due to fees charged to sellers / advertisement </li></ul><ul><li>Specific characteristics of this business model: many sellers, many bidders, no geographical constraints, no time constraints </li></ul><ul><li>Choice  Consequence </li></ul><ul><li>Online portal Broad reach, 24/7 accessibility, global Auction model Used items and collectables </li></ul>21tst of January 2011 – SSE Strategy – eBay 2011
    6. 6. Strategy <ul><li>How does eBay compete? </li></ul><ul><li>Auction clearinghouse for used goods and collectables (in addition to overstocked items) </li></ul><ul><li>Middleman function </li></ul><ul><li>Mainly small sellers but also power sellers </li></ul><ul><li>Flexibility </li></ul><ul><li>“ Buy-it-now” option </li></ul><ul><li>A variety of categories </li></ul><ul><li>(retrieved from Compete Pulse, 2009) </li></ul>21tst of January 2011 – SSE Strategy – eBay 2011
    7. 7. ... <ul><li>THANKS </li></ul>21tst of January 2011 – SSE Strategy – eBay 2011
    8. 8. Bibliography <ul><li>Bnet (2000), The Auction Network Making Dominance A Bid For On-Line Dominance - eBay Inc - Statistical Data Included, http://findarticles.com/p/articles/mi_m0FNP/is_9_39/ai_63800035/, retrieved 21st of Jan 2011 </li></ul><ul><li>Casadesus-Masanell, R. & Ricart, J.E., “From strategy to business models and onto tactics“, LRP 2010 </li></ul><ul><li>Collins, J.C. & Porras, J.I., “Building your company‘s vision“, HBR, 1996. </li></ul><ul><li>Collis, D.J. & Rukstad, M.G., “Can you say what your strategy is?“, HBR, April 2008. </li></ul><ul><li>Compete Pulse (2009), eBay’s New Strategy: What Was Once Old is New Again, http://blog.compete.com/2009/03/17/ebay-auction-amazon-craigslist/, retrieved 20th of Jan 2011 </li></ul><ul><li>eBay (2011), Who we are , http://www. eBay inc.com/who, retrieved 20th of Jan 2011 </li></ul><ul><li>Grimm, U. (2008), Script of the lecture “Modul Strategisches Management – Strategieentwicklung), European Business School (EBS), Oestrich-Winkel </li></ul>21tst of January 2011 – SSE Strategy – eBay 2011

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