Competitive battle for e commerce supremacy -ebay vs google & microsoft case study

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Case study on the Competitive battle for E-Commerce supremacy by ebay, Google and Microsoft. The competitive advantage that ebay shopping site has over Google Base and Microsoft's Windows Live Expo online classifieds portals.

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Competitive battle for e commerce supremacy -ebay vs google & microsoft case study

  1. 1. Ebay Versus Google & Microsoft: Competitive Battle for E-Commerce supremacy<br />Prashanth.C<br />Sasikumar. S<br />HallinShano<br />Vaidehi. R<br />Anne Helena. D<br />
  2. 2. Virtual Monopoly.<br />Command more than 90% of online auction market.<br />1999-2004, reported 40% annual profit growth.<br />2006, Toughest challenge faced by Ebay.<br />Google and Microsoft.<br />Not aimed at Ebay’s online auctioning but Build dominance in online classifieds.<br />Strengths: search and advertising and availability of Resources.<br />Movement of Louis Monier Former Director of advanced technology and wizard of Ebay’s search innovations to Google.<br />Online classified Business – faster growth rate. <br />
  3. 3. 25% stake owned by Ebay.<br />Online classifieds.<br />Meeting web space - looking for friends, jobs, apartments and share ideas.<br />Classic example – internet connecting people.<br />Doesn’t have an online payment system.<br />Non existent Industrial strength shopping search engine.<br />No expansion plans on global scale.<br />Hence not a major global player in E-Commerce.<br />
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  5. 5. Feb 2006, Windows live Expo launched.<br />Posting classified for free.<br />Limit access by buddy lists.<br />Focus listing geographically.<br />Geo-Tagged products and service listings.(25 miles radius)<br />Knowledge on where product is located.<br />Helped buyers and sellers find each other easily.<br />Tie- in to MSN’s Virtual earth mapping service.<br />Own search parameters for goods & services.<br />View maps – aerial imagery of neighborhoods.<br />
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  7. 7. Went live in Nov 2005.<br />A massive searchable database of products.<br />Posting of recipes, concert dates, used cars, job listings, local merchants info on inventory.<br />Classified data – available products in stores.<br />Free posting of ads for products and services.<br />Users can submit all types of online & offline content.<br />Description of item through attributes.<br />Froogle, Google maps and Google search engine – results.<br />
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  10. 10. No blindness for this shift in E-Commerce.<br />Recent acquisitions and launches.<br />Comparison site – Shopping.com and International Online classifieds – kijiji, Gumtree and LoQUo.<br />Sep 2005 – acquired Skype Technologies – Global internet communications company.<br />Skype, Ebay and Paypal- unparalleled E-Commerce and communications Engine.<br />Communications – a critical path like payments and shipping.<br />Improved communication between sellers and buyers.<br />Easy way to get info, negotiate, build relationships and close sales.<br />Increases velocity of sales on Ebay – used car, business and industrial equipments and high end collectibles.<br />
  11. 11. Turning Point in Battle<br />In 2006, Ebay struck with alliance sorts with Yahoo.<br />Sale of Ads for Ebay’s sites.<br />Promotion of PayPal payment service of Ebay.<br />Yahoo users – pay for Yahoo services.<br />Surprise deal – Google – promoting Skype calls on its website.<br />Google was allowed to place Ads on Ebay’s websites – markets outside US.<br />
  12. 12. Question 1<br />Do you Agree with Google and Microsoft that Ebay is vulnerable to their assaults Via Google Base and Windows Live Expo?<br />
  13. 13. The Answer is NO!<br />Highlighting the Move by Google and Microsoft:<br />Focus listing geographically.<br />Geo-Tagged products and service listings.<br />Own search parameters for goods & services.<br />Free posting of ads for products and services.<br />Description of item through attributes.<br />A small improvement in user experience on viewing product and service listing<br />
  14. 14. Skype, Ebay and Paypal - unparalleled E-Commerce and communications Engine.<br />Easy and safe search - Adding photos for better description<br />Feedbacks from buyers to sellers and vice versa<br />Excellent Customer service.<br />Easy to set up a auction<br />A choice of secure online payment system – Paypal<br />Communications – a critical path like payments and shipping.<br />Comparison with Ebay’smove<br />
  15. 15. Question 2<br />What are the major advantages and limitations of Google base and Windows Live Expo? Which do you prefer or would you use both? Why?<br />
  16. 16. Advantages Of Google Base & Windows Live Expo<br />
  17. 17. Ebay has a dominant market share in E-Commerce.<br />The E-Commerce not only depends on massive database, search engine or geo tagging.<br />Depends on number of factor to function well communications, secure payments and shipping.<br />Ebay - buyers and sellers rate each other and Based on this ratings business is done. It's easy to decide if people want to risk purchasing something from a seller, based on their ratings.<br />Shipment tracking is not possible in case of Google Base and Windows Live Expo.<br />Return and Refund of money is not possible in Google base and Windows Live Expo.<br />Limitations Of Google Base & Windows Live Expo<br />
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  20. 20. We would like to try both Google Base and Windows Live Expo.<br />But personally we would still stick on to Ebay because of the following reasons:<br /> - Secure Payment options.<br />- Variety of payment options.<br />- Online tracking of shipped goods.<br />- Provision for refund of cash in case of dissatisfaction.<br />- Better user interface and navigations.<br />Preference<br />
  21. 21. Question 3<br />Are Ebay’s development of Kijiji, acquisition of Skype, alliance with Yahoo and other acquisitions enough to ward off competitive assaults of Google & Microsoft?<br />
  22. 22. Ebay’s alliance with kijiji:<br />Objective: To explore eBay’s business in online listing;<br />Reasons:<br />Kijijiis still a medium-small company for online listing business.<br />Ebay can Use Kijiji for online listing of its products and services.<br />Scope of expansion of foot print into Asian, European, UK, Australian, Canadian, New zealand and South African online markets and classifieds.<br />Yes<br />
  23. 23. Ebay’sAcquisition of Skype<br />Objective: To implement the internet telephony in order to better the voice communication and accelerate E-Commerce.<br />Reasons:<br />Viewed communications as a critical path like payments and shipping.<br />Improved communication between sellers and buyers.<br />Easy way to get info, negotiate, build relationships and close sales.<br />Increases velocity of sales on Ebay – used car, business and industrial equipments and high end collectibles.<br />Ebay can fight back Google Base and Microsoft Live Expo, as they are lack of the IM system or well supported communication network.<br />
  24. 24. Ebay Alliance with Yahoo<br />Objective: To post ads in Yahoo webpage and promote the Paypal payment for Yahoo services.<br />Analysis:<br />To sell ads in Yahoo page can enhance brand awareness and increase popularity.<br />Huge revenue generated when Yahoo uses Ebay’s PayPal payment service.<br />Microsoft Live Expo is still lack of payment service.<br />Google is developing, but still takes a long time to mature it, keeping away from fraud.<br />

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