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eBay: The Market Place :)

I finally finished these slides which all about eBay :)
It took me and my teammate few days, just to read some case studies and many articles. But we are sure, there are still many mistakes you may find in our presentation. Anyway, enjoy guys :)
Let's be friend!
Here's my facebook: Sambath Metha
Here's my teammate's facebook: Chitty Chen
Wish you fun with school :)

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eBay: The Market Place :)

  1. 1. eBay: The Customer Marketplace Hello everyone… …greetings from eBay‟s presenters :) Let‟s get started…!!! By: Meth Sambath & Chen Yeting
  2. 2. What You Will Know: I – Introduction A – What is eBay? B – eBay Background C – Objective of eBay II – External Analysis D – Consumer Analysis E – Competitor Analysis F – Technology Analysis III – Internal Analysis G – Target Market H – Segmentation & Positioning I – 4 Ps Overview J – SWOT Analysis K – Other Strategies IV – Our Conclusion By: Meth Sambath & Chen Yeting
  3. 3. A – What is eBay? - - eBay is the World‟s Largest Online Marketplace with more than 116 million active users driving nearly $75 billion in sales volume in 2012. Each month, nearly 1/3 of all U.S. Internet users visit eBay. Because eBay is all about exploration and discovery, consumers love spending time on our site, engaging twice as long on eBay compared to their nearest competitor. It is now a multi-billion dollar business with operations localized in over thirty countries such as: By: Meth Sambath & Chen Yeting
  4. 4. B – eBay Background: - - - - AutionWeb was founded in San Jose, California, on September 3, 1995, by Iranian-American computer programmer Pierre Omidya at the age of 28. After writing the code for the site, Omidyar launched eBay from his home in mid-1995. The concept of an Internet marketplace caught on so quickly that by the end of the year, eBay was getting a few thousand hits daily. In 1997, the company received $6.7 million in funding from the venture capital firm Benchmark Capital. eBay went public in September 1998 at $18 per share. By early march 1999, the stock was trading approximately $282 per share! By January 2002, eBay had 37 million customers and $129 million in profit. Based on a Case Study from IIMK in 2007, there are about 147 million people use eBay now. By: Meth Sambath & Chen Yeting
  5. 5. C – Objective of eBay: - - - - Pierre Omidyar founded eBay on a simple idea: People are basically good. The objective of eBay was to develop the work ethics and culture of eBay as a fun, open and trusting environment and to keep the organization focused on the big picture objectives and key priorities. This fundamental belief created a completely new kind of marketplace, forever transforming ecommerce. In a letter to users, founder Omidyar characterized eBay as a “grand experiment…creating an open market that encourages honest dealings…to make it easier to conduct business with strangers over the Net.” The overall eBay aims are to increase the gross merchandise volume and net revenues from the eBay marketplace. By: Meth Sambath & Chen Yeting
  6. 6. D – Consumer Analysis:  Community and Customer Involvement: Everyone could be eBayer, you could be a seller or a buyer: - eBay was a marketplace for meeting and trading through online auctions (B2C). Sellers posted items and waited for bids. Upon completion of an auction, eBay notified the seller and winning bidder via e-mail, and provided them with each other‟s e-mail addressed in order that shipping, handling, and payment details might be worked out and sale completed. - Feedback system was created to enable members‟ evaluation of one another (any ratted feedback or evaluation will last on your profile permanently), so you better build a good reputation with eBay. - An estimated 430,000 people in the United States make all or most of their living by selling on eBay. - Customer Services are also provided, many community help boards are available. By: Meth Sambath & Chen Yeting
  7. 7. E – Competitor Analysis: There are so many competitors in the online auction market. These are the main competitors of eBay: , Inc.  Google Inc.  By: Meth Sambath & Chen Yeting
  8. 8. F – Technology Analysis:  How to communicate with customers: eBay Inc. acquired Skype in 2005 and significantly expanded its customer base to more than 480 million registered users worldwide. To focus on its core e-commerce and payments businesses, eBay Inc. sold a majority stake in Skype in November 2009, retaining a minority investment in the company.  Payment Process: On October 3, 2002, PayPal became a wholly owned subsidiary of eBay. PayPal enables any business or consumer with email to send and receive Internet payments securely, conveniently and cost-effectively. PayPal's account-based network builds on the existing financial infrastructure of bank accounts and credit cards to create a global payment system. In November 1996, eBay entered into its first third-party licensing deal, with a company called Electronic Travel Auction to use SmartMarket Technology to sell plane tickets and other travel products. By: Meth Sambath & Chen Yeting
  9. 9. Thank you Yeting :) By: Meth Sambath & Chen Yeting
  10. 10. G – Target Market &Market Segment:  Target Market: - eBay has a very wide range of target marketing mainly because of the wide range of product available at it‟s website. Millions of items like collectibles, appliances, computers, equipment and many more miscellaneous items are listed, bought or even sold on a daily basis. In other word, eBay generally target online auction and shopping communities.  Market Segment: At this point, by saying Market Segment, we focus on how eBay sorts their products and consumers, rather then geographic, Demographic, behavior and so on. - From the entire wide range of items available, eBay originally was set up to promote and sell antique and collectibles. This causes eBay to focus more on this segment market. Another key market segment for eBay would be the car and motor enthusiast. This is because of the unexpected popularity with the users, which is the second most visited segment on the site. Due to this, eBay has been focusing more on these two segments as their primary market target. By: Meth Sambath & Chen Yeting
  11. 11. G – Target Market &Market Segment:  KEY SEGEMENTS: 1 - Antiques & Collectibles: - Started out to be selling collectibles and antiques with auction-based online sales. These targeted markets are usually antique lovers that are willing to bid very high for a rare item. eBay has established them very well in the market, which until today, antiques, and collectibles generates the highest sales gross. 2 – Motor Lovers: - Using credibility of leading car collector Kruse Inc., eBay expanded its categorical offerings with eBay Motors. eBay Motors became one of its most successful target segments with $2,500M Global Gross Merchandise Sales in 2002. By: Meth Sambath & Chen Yeting
  12. 12. H - Market Position: - - - - eBay's position in the ecommerce, retail, and payments landscapes continues to change as each of these sectors evolves. eBay's initial $18 target price gave way to a steady climb, reaching a high of just over $58 per share in 2004 before embarking on a steady decline. eBay handled more than $175 billion of commerce volume in 2012 including all merchandise sold and payments through PayPal. In recent quarters, however, year over year growth has slowed, with an increasing proportion of overall growth coming from its payments business and an ongoing process of reorganization and strategic change coming to characterize the marketplace business. Some of the declines and difficulties in this latter sector are due to increasing competition from competitors, most notably and Google. First Quarter 2013 By: Meth Sambath & Chen Yeting
  13. 13. I – 4Ps Overview:  Products: - PayPal is an online transaction business allowing payments and financial transfers to be made through the internet. - Products on sale at Ebay include millions of collectibles, décor, appliances, computers, furnishings, equipment vehicles and other miscellaneous items are listed, bought, or sold, daily. - Skype is an economical communication tool owned by Ebay. -,, are owned by eBay  Price: - eBay, Inc. recently changed some of its pricing policies, dictating different listing fees from frequent and occasional sellers. - Sellers are charged when an item is listed on eBay a nonrefundable Insertion Fee is charged, which ranges between 30 cents and $3.30, depending on the seller's opening bid on the item. - A final sale price fee is charged to a seller at the end of an auction. This fee generally ranges from 1.25% to 5% of the final sale price. By: Meth Sambath & Chen Yeting
  14. 14. I – 4Ps Overview:  Place: - New eBay users can find answers to procedural questions by utilizing the company‟s Answer Center located at - eBay provides an international site visibility feature which allows some listings created on to be posted on international sites (such as the U.K. site). Buyers on these sites will see the listings exactly as you originally post them on the U.S. site. - eBays Seller Information Center aids participants by offering information on getting started, growth strategies and shipping  Promotion: - There are eBay Coupons, eBay discounts, eBay Promotional codes, and an eBay bargains page at - The eBay Bucks Rewards Program gives those who use PayPal on eBay 2% back on qualifying purchases participants. - eBay Radio provides traders and eBay community members with the latest in news and views from around the eBay world and covers major eBay events like the annual eBay Live Conference. By: Meth Sambath & Chen Yeting
  15. 15. J – SWOT Analysis: SWOT Analysis of eBay is carried out to get onto the finer and intricate details that eBay has adopted in such a shorter span of time to achieve profits in millions and is able to maintain a customer base that is again unbelievable. The strengths of eBay could be identified:  eBay Strengths: - eBay is the leading global brand for online auctions. The company is a giant marketplace used by more than 100 million people to buy and sell all manner of things to each other. The brand has grown tremendously over the decade or so since its conception. The company exploits the benefits of Customer Relationship Management (CRM). Buyers and sellers register with the company and data is collected by eBay on individuals. Business-to-Consumer (B2C), then mixed with Consumer-to-Consumer (C2C) The term „eBay' has become a generic term for online auctions. Today it is common to hear that someone is „ebaying' or is an „eBayer,' or that someone is going „to eBay.' - By: Meth Sambath & Chen Yeting
  16. 16. J – SWOT Analysis:  eBay Weaknesses: - - The organizations work tremendously hard to overcome fraud. Fraud includes counterfeit goods being marketed to unsuspecting (and suspecting!) eBayers. Often the company deals with such activities very quickly and this may lead to other forms of theft could include the redistribution of stolen goods. It should be pointed out that fraud and theft are problems with individuals, not eBay. The weakness is that unscrupulous individuals can exploit the C2C business model. As with many technology companies, systems breakdowns could disturb the trading activities of eBay. In the past both eBay and its payment brand Pay pal have encountered shutdowns and outages. As technology improves such a weakness is less and less of an issue  By: Meth Sambath & Chen Yeting
  17. 17. J – SWOT Analysis:  eBay Opportunities: Opportunities that eBay had were tremendous and invincible. They are: Acquisitions provide new business strategy opportunities. eBay‟s latest venture is it has agreed to buy online telephone company Skype Technologies in a deal reported to be worth $2.6 billion. Skype's software lets PC users talk to each other for free and make cut-price calls to mobiles and landlines. eBay has been buying up firms - including payment system PayPal - in an effort to increase the number of services it offers to consumers and keep its profits growing. - Market development: Aspirating consumers are growing segments in many developing nations. Countries include China and India. There, consumers are becoming richer and have more leisure time than previous generations. - There are also still opportunities in current markets (Market Penetration). Western Europe and the USA still have many potential consumers that have yet to discover the benefits of online auctions. By: Meth Sambath & Chen Yeting
  18. 18. J – SWOT Analysis:  Threats for eBay : Even a mammoth organization like eBay faces threats, which can be like as below: - As with many of the global Internet brands, success attracts competition. - International competitors competing in their domestic markets may have the cultural experience that could give them a competitive advantage over eBay, like China they have taobao. - In fact eBay has found that it has met with other USA based Internet companies when trading overseas. For example, Yahoo! Dominates the Japanese market (eBay left Japan & Hong Kong market in 2002). - Attack by illegal practices is a threat. As with weaknesses above, the brand is attacked by unscrupulous individuals. For example e-mails are sent to unsuspecting eBayers pretending to come from eBay. By: Meth Sambath & Chen Yeting
  19. 19. K – Other Strategies:  There are some more strategies that eBay has been using: 1. Establishing a larger user base: - To attract new users, eBay established relationships with more than 60 websites, including America online which gave eBay the largest access to the largest user base on the internet and prevented AOL from entering the auction arena. 2. eBay concentrated on local and international trading: - EBay has local sites in 53 U.S markets they deliver distinct regional flavors and give users the convenience of shopping locally for difficult –to ship items such as automobiles or antique furniture. The company also built a truly global presence with users in more than 150 nations. 3. Maintaining a strong community affinity: - The company believes that fostering direct interaction between buyers and sellers with similar interest had enabled it to create loyal, active community of users, As noted earlier this emphasis on community building has been present since eBay‟s founding. By: Meth Sambath & Chen Yeting
  20. 20. Our Conclusion: …eBay’s strategy of providing a safe trading place on the internet, the eBay community has flourished, by not only providing an efficient medium for people to buy or sell items directly from or to a large member of people, it’s a forum where buyers and sellers, develop reputations and in some cases, it can change people’s lives… Keep it up! By: Meth Sambath & Chen Yeting
  21. 21. References: 1 – Case Study from Harvard Business School - eBay (A): The market place, September 15, 2005 2 - Wikidpedia: - 3 – Smart Insights: - - 4 – Case Study in 2007, from Indian Institute of Management Kozhikode 5 – Agile Enterprise Analytics e.pdf 6 – Marketing Teacher: By: Meth Sambath & Chen Yeting
  22. 22. Thank You For Your Attention  감사합니다 谢谢 Xièxiè By: Meth Sambath & Chen Yeting

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I finally finished these slides which all about eBay :) It took me and my teammate few days, just to read some case studies and many articles. But we are sure, there are still many mistakes you may find in our presentation. Anyway, enjoy guys :) Let's be friend! Here's my facebook: Sambath Metha Here's my teammate's facebook: Chitty Chen Wish you fun with school :)


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