Need of better IT architecture </li></li></ul><li>Currently: Overview <br />Overview<br /><ul><li>90 million active users globally
Mission: World's largest online marketplace where practically anyone can buy and sell practically anything
2009:the total worth of goods sold on eBay was $60 billion -- $2,000 every second.
Revenue: advertising, listing and value fees, merchant fees, revenue sharing agreements, contractual service fees and classified and lead referral fees.
Current CEO: John Donahoe</li></ul> since 2008 <br />eBay Annual Report 2009<br />
Trading Community:How does it work?<br />Services<br />Proxy bidding: winning bidder pays the price of the second-highest bid plus a defined increment<br /> price paid is determined only by competitors' bids and not by the amount of the new bid<br />Auction-style listings: offer items for sale for a specified number of days<br />Buy-It-Now Option<br />Last bid displayed<br />
PayPal Buyer Protection Policy states that the customer may file a buyer complaint within 45 days if he did not receive an item get a refund via chargeback from his credit-card company</li></li></ul><li>Competitors: Dethroning the King?<br />Competition<br />“Even the best products don’t always sell out in stores, so when our trusted selling partners have excess inventory they sell it with us at prices far below retail.”<br />World’s leading B2B e-commerce company: 32 million users, 240 countries<br />Unique user interface features that make for an enjoyable experience <br />Works best employing sellers currently established ecommerce sites and then utilizing Google Product Search as a information organizer and checkout tool<br />B2C: Sell consumer products around the world – sustaining healthy growth <br />Next generation shopping destination: link advertisers and help them reach the right consumers at the right time<br />Powerhouse in e-commerce <br /> Utilize network capabilities of pre-established communities (e.g. Facebook)?<br />
Competitors: Why the King stays?<br />Competition<br />Competitor threats<br />Power <br />Source of revenue<br />Centrality<br /> Mobile platforms<br />Consumer Security<br />
C2C</li></ul>Austria<br />Switzerland<br />Alando.de<br />1999/2000 <br />France <br />Sweden = failure <br />3. Own Websites<br />1. Acquisitions<br /> eBay has the administrative strength to cope with so many national rules<br />
Asian Strategy: Not a success story <br />Go Global<br />= first mover advantage + free of charge + favored payment method <br />= first mover advantage on the national market <br /> eBay acquired it, but did not integrate it <br />South Korea<br />VS <br /><ul><li>Listing and transaction fees
Customer-oriented</li></li></ul><li>Conclusion: Successful Business Model? Next?<br />Conclusion<br />TRUST<br />Seller 1<br />Buyer 1<br />Transactions platform<br />Intermediaries<br />Seller 2<br />Buyer 2<br />Seller 3<br />Buyer 3<br />No inventory <br />No stock <br />No distribution <br />Low operation costs <br />Low business risks <br />High profits <br />Do you think that the Business Model of eBay is really successful? <br />What do you think should be the next steps for improvement?<br />
Conclusion: Growth Sustained? <br />Conclusion<br />Share price change since the beginning of eBay – source: NASDAQ <br />Highest peak<br />Now what?<br />Paper written<br />According to the graph of the American Stock Exchange, do you think the growth is sustainable? Doesn’t it remind you of something we studied? <br />
Theoretical debate: Perfect Market = e-commerce?<br />Conclusion<br />Perfect Market <br />Participants without power to set prices<br />Perfect Market <br />Information <br />Perfect Competition<br />No barriers of entry/exit<br />+<br />+<br />=<br /> Price regulation according to the number of sellers/buyers <br />
THANK YOU!<br />and now don’t you wanna go buy something from eBay :D <br />