Case Analysis Robert Judd Dupuis John Graham Gardner Joe Wunderlick

Five Generic Competitive Strategies Overall Low-Cost Provider Strategy Broad Differentiation Strategy Focused Differentiation Strategy Focused Low-Cost Strategy Best-Cost Provider Strategy

Five Force Analysis Substitute products New entries Buyers Suppliers STRONG WEAK MODERATE INTENSE eBay Rival firms STRONG

SWOT Analysis Strengths Brand recognition Dynamic pricing Customer relationship management Weaknesses Marketing Low control over product quality System breakdowns Opportunities Acquisitions Development in international markets Threats Customer fraud Competitors Customer confidence

Strengths

Brand recognition

Dynamic pricing

Customer relationship management

Weaknesses

Marketing

Low control over product quality

System breakdowns

Opportunities

Acquisitions

Development in international markets

Threats

Customer fraud

Competitors

Customer confidence

Strategic Group Map Strong Weak Reputation / Brand Awareness Broad Narrow Number / Variety of Auction / Product Categories eBay Amazon Class. ads Amazon auctions Live auctions Flea market Yahoo! uBid

Financials $ 1,082 $ 778 $ 442 $ 250 Net Income $ 1,549 $ 1,128 $ 662 $ 398 Income Before Tax $ 1,442 $ 1,059 $ 628 $ 350 Operating Income $(3,111) $(2,212) $(1,537) $ (864) Total Operating Expense $(1,835) $(1,291) $ (880) $ (525) Sell/Gen/Admin Expenses $ 4,552 $ 3,271 $ 2,165 $ 1,214 Total Rev. 2005 2004 2003 2002 ($ in Millions)

Stock Price

End of Case Proposals Sustain phenomenal growth Extend to global auction industry Broaden eBay’s offers to include more: Categories Specialty sites [acquisitions] Sellers Enhance marketing influence My Page - more advanced eBay Desktop PDA/Cell phone incorporation

Sustain phenomenal growth

Extend to global auction industry

Broaden eBay’s offers to include more:

Categories

Specialty sites [acquisitions]

Sellers

Enhance marketing influence

My Page - more advanced

eBay Desktop

PDA/Cell phone incorporation

Questions ?

SWOT Analysis Strengths Brand recognition Marketing Dynamic pricing eBay Express Customer relationship management Skype Integration Weaknesses Low control over product quality System breakdowns Rapid growth Can it continue? Exchange rates Opportunities Acquisitions Development in international markets Enhance website Threats Customer fraud SafeHarbor Competitors Customer confidence

Strengths

Brand recognition

Marketing

Dynamic pricing eBay Express

Customer relationship management

Skype Integration

Weaknesses

Low control over product quality

System breakdowns

Rapid growth Can it continue?

Exchange rates

Opportunities

Acquisitions

Development in international markets

Enhance website

Threats

Customer fraud

SafeHarbor

Competitors

Customer confidence

Financials $ 1,126 $ 1,082 $ 778 $ 442 $ 250 Net Income $ 1,547 $ 1,549 $ 1,128 $ 662 $ 398 Income Before Tax $ 1,423 $ 1,442 $ 1,059 $ 628 $ 350 Operating Income $(4,547) $(3,111) $(2,212) $(1,537) $ (864) Total Operating Expense $(2,598) $(1,835) $(1,291) $ (880) $ (525) Sell/Gen/Admin Expenses $ 5,970 $ 4,552 $ 3,271 $ 2,165 $ 1,214 Total Rev. 2006 2005 2004 2003 2002 ($ in Millions)

Financials

Stock Price

Acquisitions Skype [Oct. 2005] Global VoIP provider Over 59 million registered users StubHub [Jan. 2007] ~$307 million Dedicated ticket-only marketplace

Skype [Oct. 2005]

Global VoIP provider

Over 59 million registered users

StubHub [Jan. 2007]

~$307 million

Dedicated ticket-only marketplace

Strategic Partnerships Yahoo! [May 2006] Exclusive 3 rd party provider of all graphical advertisements Online payments, co-branded toolbar, & “click-to-call” functionality Google [Aug. 2006] Exclusive provider of text-based advertising outside US “ Click-to-call” integration

Yahoo! [May 2006]

Exclusive 3 rd party provider of all graphical advertisements

Online payments, co-branded toolbar, & “click-to-call” functionality

Google [Aug. 2006]

Exclusive provider of text-based advertising outside US

“ Click-to-call” integration

Global Joint Ventures PChome Online [June 2006] Internet provider in Taiwan Co-branded website featuring auction style trading & fixed price sales TOM Online [Dec. 2006] Leading wireless Internet company in China eBay EachNet & TOM Online combine to create new e-commerce community in China

PChome Online [June 2006]

Internet provider in Taiwan

Co-branded website featuring auction style trading & fixed price sales

TOM Online [Dec. 2006]

Leading wireless Internet company in China

eBay EachNet & TOM Online combine to create new e-commerce community in China

eBay.com Design by AndyRutledge.com

Expedia Proposal 51% interest in Expedia Group ~3.7 billion ~5-7 year recovery

51% interest in Expedia Group

~3.7 billion

~5-7 year recovery

NASCAR Proposal Per year cost: ~$22 million Net Revenue from NASCAR related sales $85 million

Per year cost: ~$22 million

Net Revenue from NASCAR related sales $85 million

Stadium Proposal

Facebook Proposal Joint venture with Facebook.com Student-to-student transactions for used textbooks Expose college students to eBay auctions Future options with Facebook.com

Joint venture with Facebook.com

Student-to-student transactions for used textbooks

Expose college students to eBay auctions

Future options with Facebook.com

Questions ?