E Bay Innovators


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Design of new strategy for eBay

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E Bay Innovators

  1. 1. EBay Innovators Ryan Carlyle Blaine Carmichael Nick Kaufman Lindsay Kessler Jessica Munson Jeffery Twigg December 4, 20008
  2. 2. Overview <ul><li>EBay, the world’s largest online marketplace, manages transactions between buyers and sellers. EBay provides an open trading platform where anyone can sell anything to anyone at any time. </li></ul><ul><li>Intrigued by growth, innovation and connecting people through online payments and communication </li></ul>
  3. 3. Overview cont. <ul><li>PayPal enables secure transactions between online users </li></ul><ul><li>A global leader in online payment solutions </li></ul><ul><li>149 million registered users </li></ul><ul><li>Accounts for 9% of world wide ecommerce in 2008 </li></ul>
  4. 4. Strategic Challenges <ul><li>EBay faces increased competition from market sharing rival Amazon </li></ul><ul><li>Slowing growth trends due to competition and deteriorating economic conditions have set the auction site profits back </li></ul><ul><li>Niche sites, selling highly specialized products, have begun to cut into profits and market share, eBay finds it hard to keep up with such small market segments while managing an expansive corporation </li></ul>
  5. 5. Strategic Diamond <ul><li>EBay’s main arenas fall within ecommerce and the auction industry </li></ul><ul><ul><li>Customers can access the site from anywhere in the world that has internet access </li></ul></ul><ul><li>The vehicles for the company include acquisitions and internal development </li></ul><ul><ul><li>EBay has acquired PayPal, several smaller auction sites and other companies such as Skype and Stubhub </li></ul></ul>
  6. 6. Strategic Diamond cont. <ul><li>EBay has differentiated themselves from the competition through an endless variety of products, and their own unique payment structure </li></ul><ul><li>Staging has been fast paced as they have acquired at least ten companies since 2002 including WorldofGood.com. </li></ul><ul><ul><li>expanded through thirty nine markets and launched a business and industrial category </li></ul></ul>
  7. 7. Strategic Diamond cont. <ul><li>EBay’s economic logic is to generate revenue from a system of collecting fees while avoiding overhead costs associated with brick and mortar stores </li></ul><ul><ul><li>Sales stem from three segments </li></ul></ul><ul><ul><ul><li>Marketplaces (eBay, StubHub, Half.com) </li></ul></ul></ul><ul><ul><ul><li>Communication (Skype) </li></ul></ul></ul><ul><ul><ul><li>Payments (PayPal) </li></ul></ul></ul>
  8. 8. Company Revenue Years Insert 07 growth 29%
  9. 9. Recommendation <ul><li>PayPal Reward Program </li></ul><ul><ul><li>Offers incentives for eBay purchases through a point system </li></ul></ul><ul><ul><li>One point for every dollar spent at an eBay affiliated site </li></ul></ul><ul><ul><li>Points are tracked through customer’s PayPal account </li></ul></ul><ul><ul><li>These can only be redeemed within the eBay community </li></ul></ul>
  10. 10. Recommendation cont. <ul><li>PayPal Rewards Program </li></ul><ul><ul><li>Designed to give customers incentive to purchase more </li></ul></ul><ul><ul><li>Remain loyal to the company </li></ul></ul><ul><ul><li>Attract new clientele away from niche sites to gain market share </li></ul></ul><ul><ul><li>Increases profit as costs are minimal </li></ul></ul>
  11. 11. Recommendation cont. <ul><li>PayPal Rewards Program will be linked to all eBay affiliates </li></ul><ul><li>Counter stifled growth </li></ul><ul><li>Improve brand image </li></ul><ul><li>Advance core technologies </li></ul>
  12. 12. Summary