WELCOMETO THE WORLD OF Presented by: Alok Jain Roll No 13
INDUSTRYThe major players in online auctioning are:eBay, naaptol.com, Yahoo! Auctions,Bidjeeto.com, amazon.com and so on.This presentation we will focus on auctionlink sponsored by eBay.com.
Industry Overview: eBay• On any given day, there are more than 16 million items listed on eBay across 27,000 categories.• People come to eBay to buy and sell products ranging from books, cars, accessories, travel etc.• Net Revenue chart for Year Ended 31st December 2011 2010 % Change $11,652m $9,156m 27.26%
STRENGHTS• Largest online trading forum: From its beginning in the mid-1990s, eBay has been growing. They have over 94.9 million registered users in more then 150 different countries.• Recognizable Brand Name: eBay has made sure to use color and unique writing to show their brand name off.• Over 250 Alliances: eBay holds alliances with some of the largest companies in the world. They include UPS, America Online, IBM, PayPal, and Walt Disney. These alliances create more opportunities for eBay to advertise and reach potential customers.• eBay University: For educating new users.
STRENGHTS Cont..• Publicly Traded: The initial public offering generated $66 million in new capital for the company. Their second IPO generated another $600 million for the company.• Zero inventory held by company: eBay does not have stores or warehouses which reduces their cost down.• Sense of community: Feedback forum for customers & two personalized features for customers My eBay and about me.• Partnerships with international companies• No need for the traditional sales force
WEAKNESSES• Inability to measure illegal activity on site:• Inability to penetrate some foreign markets: they have been unable to take over one of the most crucial foreign markets, Japan.• Lack of in depth descriptions of products: Amazon.com boasts in-depth product descriptions for all merchandise sold on their site. This is not one of eBay’s outstanding features.• Technology malfunctions: It is an going factor when dealing with websites and online shopping.
RECOMMENDATIONS• Acquisition of Shop Yahoo.com: Yahoo.com’s shopping site is very weak in the online auction industry. eBay should explore the possibility of acquiring their shopping site, this will broaden their customer base. Though EBay already has partnerships with Yahoo.com in other areas so this acquisition would benefit both parties.• Increasing Use of the Internet: The internet is being used more and more each day. eBay can take this opportunity to expand and penetrate new markets
RECOMMENDATIONS• Expand the eBay Community: For continued customer satisfaction eBay should increase its community feel by targeting the customer base who are much active on on-line community forum.