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Ebay - Presentation for Strategic Management class

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This is a presentation for my group work on eBay in Strategic Management class. If you want the full written report (about 50 pages), please contact me via le@khuya.net

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Ebay - Presentation for Strategic Management class

  1. 1. inc. STRATEGIC MANAGEMENT FINAL PROJECT Hien Le, Thinh Nguyen, Xuannan Le, Xiang Rong, Neil Cooper
  2. 2. Firm Profile  Founded by Pierre Omidyar in 1995  Current CEO: John Donahoe  International online marketplace  Over 15000 employees in over 39 countries  Millions of items listed on eBay across thousands of categories.  IPO in 1998  Traded as NASDAQ:EBAY  Market Capitalization: $68.18 Billion
  3. 3. Product and service  Key products and services:  Online services for the sale of goods and services  Online communication services  Online payment and transactional credit services  Online classifieds  Advertising  Global commerce platform and payment leader.  The world's largest online marketplaces  PayPal - flexible and innovative payment solutions  eBay Enterprise - exceptional, engaging shopping experiences online and offline.
  4. 4. External Analysis Competitors  Amazon  Market Cap: 147.18B  Alibaba  Market Cap: 267.89B  Overstock  Market Cap: 600.39M  Rakuten  Market Cap: 17.47B Amazon Alibaba Overstock Rakuten
  5. 5. External Analysis Porter’s 5 Forces Model Supplier: low power Rivalry: high among the competitors New Entrance: medium Buyer: high buyer power Substitutes: very high Industry Trend: - Mobile – more sales - Free and faster shipping - Business without borders - Content marketing is essential - Growth of guided discovery - Consumer driven demand and personalization - Brand
  6. 6. External Analysis PEST Political •Marketplace Fairness Act •Copyright policy Economic •Exchange rate •Global recession •Slower growth in mature market Social •Privacy •Different markets have different cultures and competitions. Technology •Mobile Payment •Cloud computing
  7. 7. Mission Statement “eBay Inc. enable commerce by delivering flexible and scalable solutions that foster merchant growth”
  8. 8. Organizational Structure CEO Marketplace Payment CTO CFO SVP Two core businesses - eBay Global Marketplace, led by Devin Wenig - Payment, led by Dan Schulman CEO John Donahoe - Oversees strategic and financial planning, marketing, operations, product development, and business development for eBay North America and eBay International businesses. - Receives reports from various departments, including legal, marketplaces, communication, Shopping.com, international and human resource.
  9. 9. Resources  Innovative business model  Large range of item  Technology platform (website, paygate, mobile)  Globalization scale  Marketing  Partnership  Customer service  Brand  eBay community  Office, facilities
  10. 10. Internal Analysis VRIO Framework Resources V R I O Competitive Advantage Innovative business model yes no yes yes Temporary Globalization yes no yes yes Temporary
  11. 11. Internal Analysis Value Chain Model
  12. 12. Business level strategies Differentiation Cost Leadership Growth Strategy Quality control by offering peer review “Auction”; and Alliances with numerous overseas companies Cost saving way to start a business on eBay, offering all types of items and broad providers Acquisitions and joint ventures with global companies
  13. 13. Corporate Level Strategies •UPS: improve delivery quality •Microsoft: expand online presence Strategic Alliances •Registered members: > 150 countries •Rely on local sites International Strategy
  14. 14. Integration Strategy Vertical Integration: - Paypal - Shopping.com - Where, Inc Horizontal Integration: - Craigslist - StubHub - Bill Me Later Diversification: - Skype - Meetup
  15. 15. Financial performance in the last 5 years Changing payment model Paypal acquired Bill Me Later in 2008 Allow purchases without using a credit (6 months to pay their bill in full). EBay’s receivable turnovers decreased over time while collection period went up. It might be a troubling signal for its investors.
  16. 16. Financial Analysis REVENUE PER YEAR eBay Amazon Alibaba 2009 2010 2011 2012 2013 GROSS PROFIT MARGIN 2009 2010 2011 2012 2013
  17. 17. Opportunities & Challenges Strengths Weaknesses Opportunities Threats
  18. 18. Opportunities & Challenges Strengths Weaknesses Opportunities Threats  Economic Scale  Diversity in Products  Strength in Technology  Brand Reputation  Users Data Base
  19. 19. Opportunities & Challenges Strengths Weaknesses Opportunities Threats  Inability to measure illegal activity on site  Technology malfunctions  Cost of shipping  High fee  No further growth strategy  Inability to penetrate some foreign markets  Lack of in-depth descriptions for products
  20. 20. Opportunities & Challenges Strengths Weaknesses Opportunities Threats  Mobile usage  International expansion  New markets  Market penetration  Increase services portfolio through acquisition
  21. 21. Opportunities & Challenges Strengths Weaknesses Opportunities Threats  Online security  Increasing competition from Amazon & Alibaba  Exchange rates  Regional low cost retailers
  22. 22. Action Plan Tackle weakness: - Make it more difficult for scammers to take people’s money - Keep malfunctions as low as possible - Control the price of shipping - Revise and adjust the fee system Capital Opportunities: - Enable the process payment system - Further its international expansion efforts - Consider the retail markets
  23. 23. Q&A

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