ITS 450 INTRODUCTION TO E-BUSINESS TITLE: eBay NOR BAITI BINTI SAHARI (2009240686) NUR DIYANA BINTI MOHD AZMI (2009284864)
Table of contents
Company founders eBay is the online auction website was founded as AuctionWeb in San Jose, California on September 3,1995. The founders of eBay is Pierre Omidyar
he is French-born
Iranian computer programmer.
Company Background One of the first items that sold by eBay was a broken laser point . Omidyar contacted the winning bidder to ask if he understood that the laser pointer was broken. In his responding email, the buyer explain “I’m a collector of broken laser pointers”. As an early Internet enthusiast, Pierre knew that people needed a central location to buy and sell all kinds of items on a level playing field and to meet other users with similar interests. He started eBay to fulfill this need.
At the time, Pierre's fiancée (now wife),Pamela Kerr was an avid Pez (sweet dispenser) collector. Came up with the idea of trading them over the internet. When she shared this idea to her boyfriend, Pierre Omidyar instantly stuck with the soon-to-be-famous e-business auction concept. In November 1996, eBay entered into the first third-party licensing deal, with a company called Electronic Travel Auction to use SmartMarket Technology to sell plane tickets and other travel products.
The company was officially changed the name of its service from AuctionWeb to eBay in September 1997. Originally, Omidyar want to register the domain name echobay.com due to the site belong to Echo Bay Technology Group(Omidyar’s consulting firm), but found it already taken by Echo Bay Mines (a gold mining company).
Core Business Originally, eBay's core business was to offer auction services online as well as the technology to do so. However, auction services are now easily duplicated and are available on many different sites. Today, eBay's core business seems to be their name recognition and high website traffic. The large amount of traffic to eBay brings a large number of sellers and buyers together so that an extremely large collection of products can be found for purchase.
Business Model Value proposition
One of the world leading auction site
Advertising, transaction fees
Locally and globally
Amazon auctions, Yahoo! auctions
Offered in 30 countries nationwide
Increasing international trade
Increasing mutual interaction between PayPal and eBay
Market strategy Organizational development
Internet, community (auctioneer, bidder, seller, buyer)
John Donahoe current president and CEO of eBay.
He has served as president of eBay market places.
He has received a Bachelor of Art in Economics and MBA from Stanford Graduates School of Business.
IT Application 1. Ebay mobile eBay on iPhone With the eBay iPhone application, eBay members can search, buy, pay and check their activity and status wherever they are. With alerts, buyers are notified of status changes and updates so they can put in that last minute bid on a hard-to-find item. Sellers can check the status of their sales. Users can also manage eBay account and task whether it’s leaving feedback, responding to messages, or checking out the Daily Deals without computer.
eBay on Blackberry Users can receive alerts when there is a change in an item’s status. Messages sent by buyers can be viewed and reply Users can get calendar reminders and email notifications for listing end dates Users also can pay for an item using PayPal® Other that that, users can review sale items, view items that have sold and relist items
2. Paypal an e-commerce business allowing payments and money transfers to be made through the Internet. A PayPal account can be funded with an electronic debit from a bank account or by a credit card. The recipient of a PayPal transfer can either request a check from PayPal, establish their own PayPal deposit account or request a transfer to their bank account. eBay made Billpoint its official payment system, but due to its limited functions, Paypal has been the top choice of payment for ebay customers. Thus, in October 2002, PayPal was acquired by eBay for $1.5 billion
Success Story In 1997, the site hosted 2,000,000 auctions, compare with 250,000 during the whole 1996. At that time, the company received $6.7 million in funding from the venture capital. In 1998, the company had 30 employees, half a million users and revenues of $4.7 million in the United States.
In Feb 2002, the company purchased Ibazar, a similar European auction web site founded in 1995 and then bought Paypalon October 14,2002. In early 2008, the company had expanded worldwide . About hundred of millions of registered users, 15000+ employees and revenues of almost $7.7 billion. In late 2009, eBay completed the sale of Skype for $2.75 Billions.
Lesson Learnt Have faith in yourself and ignore what people say. A good leader should make a wise decision and have a good strategy plan in order to achieve company’s goal.