ITEC-610 Ebay Case Study
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ITEC-610 Ebay Case Study



Case study on eBay for UMUC class ITEC-610

Case study on eBay for UMUC class ITEC-610



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    ITEC-610 Ebay Case Study ITEC-610 Ebay Case Study Presentation Transcript

    • Case Study: ebay
      ITEC 610
      Scott Cnockeart
      Benjamin Muthoka
      Chris Lange
      Murdock McCormick
    • What is eBay?
      eBay is the largest online marketplace where local, national, and international participants can make sales and purchases. Buyers and sellers are able to use auction-style listings, or make immediate sales using the “Buy it now,” Fixed Price,” and eBay store listings.
    • eBay Background
      1995 - Pierre Omidyar, In his home, created eBay and it was originally called Because the domain name was already registered, Echo was shortened to “e”, and eBay was born.
      March 1998 - Meg Whitman, the name we all know, joined eBay.
      September 1998 – eBay goes public
      October 2002 – eBay acquires PayPal
      (Mullen, 2008)
    • First item sold on eBay was…. a laser pointer….
    • eBay Revenue History
      (MSN, 2009)
    • Web Auction Competitors
      eBay is still a market leader in the online auction market commanding a respectable 17% online market share.
      (BusinessWeek, Issue 4136 )
      (O’Brien and Marakas, 372)
    • Competitive Advantage
      Superior customer service through the use of different technologies to provide online support. E.g. chat rooms, discussion boards and automatic email response technology.
      Leveraging PayPal by increasing services such as the recently added iPhone application that has attracted thousands of Net shopping sites.
      Improved communication between buyers and sellers through Skype, which at its acquisition had a 54 million customer base.
      A commanding international market share especially in Europe with Germany generating a staggering $7 billion in annual sales second only to the U.S.
      ( O’Brien and Marakas, 2009)
    • eBay vs. Amazon
    • eBay Shortfalls
      A decreasing international presence especially in majors markets like China.
      Fierce competition from Google and Microsoft for online classifieds.
      Declining sales which has seen Amazon gain 5 million more visitors while eBay lost 8 million in the same time period.
      Claims of a non user-friendly website by online buyers. E.g. better search results from Google.
      A time consuming and exhaustive vetting process that delays introduction of innovative technology into the market.
      Disgruntled sellers due to a new feedback system that stands to put them at a disadvantage.
      (BusinessWeek, Issue 4136 )
      (O’Brien and Marakas, 372)
    • Current Business Practices
      (eBay Inc., n.d.)
      eBay has positioned itself to be the worlds largest online marketplace.
      The company has a presence in 39 markets, the US included
      Almost 1 billion users worldwide
      eBay has forever changed the idea of internet commerce
    • Current Practices
      • Consumer benefits of eBay
      Provides an open trading forum for buyers and sellers to conduct business
      Some sellers provide links to online stores
      Provides an excellent opportunity for entrepreneurs to start a small business
      The market controls the value of products being sold
      Contains an extensive search database
      Virtually anything can be located via search engine
      Advanced features allows more search detail
      (eBay Inc., n.d.)
    • Current Practices, cont.
      • Consumer benefits of eBay, cont.
      User friendly interface
      Items of interest can be browsed using different views
      Sellers provide details of selected items
      Items can be selected to watch
      Personal online account creation
      Contains recently purchased/won products
      View items previously checked to watch
      Access personal eBay mail from sellers
      Experience the excitement of the process
      Painless payment process via eBay owned PayPal
      (eBay Inc., n.d.)
    • Accompanying Services
      Paypal online payment service
      Built on our current financial system of banks and credit cards
      Secure method to send and receive online payments effectively
      Payment solutions global leader
      Accepted by millions of merchants worldwide
      Currently utilized on and off eBay
      (eBay Inc., n.d.)
    • Accompanying Services cont., apartment listing guide
      Online Classifieds
      Information on apt. availability and rates, roommates, virtual tours, moving services
      Online Classifieds
      People meet, share ideas, and trade locally
      Available in hundreds of cites and regions globally, Kijiji,, Intoko,
      Netherlands;, German auto ads;
      (eBay Inc., n.d.)
    • Business Challenges
      Users find eBay online auctions cumbersome
      Competitors are breaking into online classifieds markets, providing free services searchable by location:
      Google Base
      Microsoft’s Windows Live Expo
      eBay lost China’s market due to TaoBao; a company that allowed for more of a consumer to consumer approach to eCommerce
      (O’Brien & Marakas, 372)
      (Xiaojuan & Davison, 145-148)
    • Potential Solutions
      1) eBay could continue to make acquisitions1
      eBay currently has a 25% stake in Craigslist
      eBay has acquired online classifieds sites:
      eBay completed acquisition of Skype in 2005 in an attempt to link buyers and sellers quickly and easily
      2) eBay could continue to go global2
      eBay has already expanded globally to over 22 countries
      1: (O’Brien & Marakas, 372-373)
      2: (Komiak, Komiak, Imhof, 187-204)
    • Potential Solutions (continued)
      3) Incorporate PayPal into Craigslist
      4) Incorporate more on-site advertising and make eBay item postings free
      (O’Brien & Marakas, 372-373)
    • Analysis of Solutions
      Based on a scale from 1-10; 10 being best
    • Recommendation
      For eBay to truly compete with the new products developed by Microsoft and Google, they need to take a proactive approach and allow users to post products for little or no money
      These costs can be recouped through the use of site advertising
    • References
      eBay inc. (n.d.). The eBay Company. Retrieved August 1, 2009, from
      eBay inc. (n.d.). How eBay works. Retrieved August 1, 2009, from
      Komiak, P., Komiak, S. Y. X., & Imhof, M. (2008). Conducting International Business at eBay: The Determinants of Success of e-Stores. Electronic Markets, 18, 187-204. Retrieved July 31, 2009 from Business Source Complete database.
      Maltby, E. (October 17, 2008). R etrieved August 01, 2009 from
      McMillan, D. (2009, J une 0 6 ). Can eBay Get Its Tech Savvy Back? BusinessWeek, 413 6, 48-49.
      MSN. (2009, n.d.). eBay Inc. Retrieved August 2, 2009, from
      Mullen, A. (2008, n.d.). Learn how eBay began as a small business in someone's living room and grew into one of the top earning Websites on the Internet. Retrieved August 1, 2009, from
      O’Brien, J. A. & Marakas, G. M. (2009). Management Information Systems. New York, NY: McGraw-Hill Irwin.
      Xiaojuan Ou, C. & Davison, R. M. (2009). Why eBay Lost to TaoBao in China: The Global Advantage. Communications of the ACM: 52, 145-148. Retrieved on June 15, 2009 from Computers and Applied Sciences Complete database.