Strategic evaluation of e bay


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Strategic evaluation of e bay

  1. 1. StrategicEvaluation of eBayCompetitive and Dynamic Rivalry Personal Assignment Pramita Wardani 1140003121 1
  2. 2. About eBayeBay positioningExternal Environment AnalysisPESTELIndustry AnalysisStrategic Group MappingIndustry TrendsPorter 5 ForcesInternal AnalysisSWOTValue Chain ModelCompetitive Strategic MovementAnalysiseBay StrategyConclusion and Recommendations 2
  3. 3. About eBayeBay positioning The Worlds Online Marketplace for the sale of goods and services by a diverse community of individuals and businesses, provide a global trading platform where practically anyone can trade practically anything.  Founded in September of 1995 , is a global online marketplace where practically anyone can trade practically anything.  eBay Inc. has a global presence in 39 markets, including the U.S.  Marketplaces have approximately 104 million active users worldwide.  Marketplaces net revenues totaled $1.8 billion in Q2 2012.  In Q2 2012, gross merchandise volume (GMV), the total value of all successfully closed items on eBay Inc.’s trading platforms, was $ 16 billion .  users worldwide trade $2,080 worth of goods on the site every second.  The most expensive item sold on eBay to date is a private business jet for $4.9 million 3
  4. 4. About eBayeBay positioning eBays also owns : as Pay Pal, Skype (it was sold in 2009, but eBay still owns 30% of the share), iBazar, etc The eBay’s revenue streams are from : • Insertion fees • Promotional fees • Final value fee Logo transformation : 1995-2012 2012 4
  5. 5. About eBayeBay positioning 5
  6. 6. External Environment AnalysisPESTEL 6
  7. 7. PESTEL e-Commerce is a big business that collects many money. The legal aspects in every The economic growth is country are different. relatively low or even negative eBay must aware and in western countries and adapt quickly through furthermore Europe but as an this situation. emerging economic force, Asia and in this case China is having a really good economic growth, even Indonesia is having a raise in GDP.internet is relatively easy to • social networkers are get nowadays, and also expanding as well. the implementation of • People lifestyles are also technology have endless changing potential Emerging of internet technology applications 7
  8. 8. Industry Analysis Strategic Group Mapping Industry Trends Porter 5 Forces 8
  9. 9. Strategic Map GroupStrategic Group Map of Online Retail Industry in year 2012 Strong Brand Awareness/Reputation Weak Broad Number of Product Categories Narrow 9
  10. 10. Industry Trends 10
  11. 11. • Nowadays, many companies who has physical store now Porter’s 5 Forces are expanding in the online shopping industry. Those companies are more trustable than the online shopping HIGH who has no physical store. Potential New Entrants HIGH HIGH • eBay customers• Suppliers have a Suppliers Bargaining Power Industry Rivalry have the option of Buyers Bargaining Power medium power in buying the products the sense that much and services they of eBay’s own desire on the inventory could be hundreds of obtained from thousands of other numerous suppliers retail web sites on across the country the internet. or even across the globe. HIGH • eBay has countless competitors, and since Amazon offers such an extensive selection there are more companies competing with its products and services. Substitute Products HIGH • There are a lot of companies that can substitute eBay. Most of the companies have a physical store and also online store. 11
  12. 12. Internal Analysis• SWOT• Value Chain Model 12
  13. 13. SWOT Strengths Weakness • eBay is the leading global • System breakdowns could brand for online auctions affect the trading activities of eBayOpportunity SO Strategies WO Strategies• Acquisitions provide new • Global expansion • Diversify into new product business opportunities markets• Market penetration in internet • Online verification of products users are increasing • Strategic alliance with couriers• Changing of people lifestyle and habitsThreats ST Strategies WT Strategies• Credit card charges cant be • Acquisition strategy-global • Alliance to postal services controlled expansions• Illegal practice • Use online security protocols as like as banking for verifications of authenticity 13
  14. 14. Value Chain Model LEGAL FINANCE MARGIN HUMAN RESOURCES Te c h n i c a l D e v e l o p m e n t + ( R & D ) Conversation from traffic to Auction Marketing Peer Review buyers and Process sellers 14
  15. 15. Value Chain ModelValue chain analysis, comparing the competencies of eBay and Comparison eBay Competencies Technical proficiency Technical proficiency, Usability, Usability Shipping Core Competencies Bidding site Catalogue site, Product review, Conversion rate (traffic to Conversion rate subscribers) Distinctive Peer review Cross-Selling CompetenciesThe main differences between eBay and are : eBay eBay started with used products and its now started with books and then new expanding into new products products. Now it’s distributing used products as well. Community focus-connects people Product Focus Virtual product, with no ownerships or Handles physical products and takes ownership handling of physical products Facilitates transactions Warehousing, Packaging and delivery 15
  16. 16. Competitive Strategic Movement Analysis• eBay Strategy 16
  17. 17. Ebay Strategy The frontal attack strategy deployed by eBay to No The Frontal Attack eBay Strategy 1 Industry Segment Online retail industry Online retail industry 2 Competitor weakness In 1994, amazon only In 1995, eBay sell sells book online anything 3 Achievement 4 Selling Strategy Tend to sells big-name Sells every brand, brand from no name and big brand name 17
  18. 18. Ebay Strategy The holding the ground strategy deployed by eBay and No Holding the ground eBay Strategy 1 Products Sells anything From book, they changed their business model and sell anything eBay started with used products started by and its now expanding into new selling books and new products product, now the sell used products 2 Selling system eBay uses auction used fixed price and auction 18
  19. 19. Conclusion andRecommendations 19
  20. 20. Conclusion and Recommendations Conclusion Next Step Market eBay market size in global is big, but eBay must keep maintaining its market many competitors are rising up share in global and also maintain its because of the fast growing market. growth initiative as well. Economic of scale eBay’s generate traffic to get Maintain its brand image and advertising subscribers efforts Vertical integration eBay already have up-and- eBay must identify and make a selection downstream integration as their on what company could they take over as competitive advantage an acquisition, to create a stronger vertical integration Technology The emerging of internet technology eBay must develop some software applications are growing fast. eBay application that meets the need of the adapt very quick in technologies, customer using the latest technology. such as eBay mobile for ipad and androids. Communities of Creates added value through base of Support the information through internal interest additional information communication such as newsletters for customers, both seller and buyers. Globalization Opens new market Support multi language platforms or communicate advantage of global market to customers 20
  21. 21. StrategicEvaluation of eBayCompetitive and Dynamic Rivalry Personal Assignment Pramita Wardani 1140003121 21 21