- eBay has grown more slowly than Amazon in recent years, with 15% annual revenue growth and 6% annual share price growth compared to Amazon's 32% and 37% respectively. - Amazon has pursued an aggressive growth strategy from the beginning, prioritizing growth over profits to establish dominance in e-commerce before competitors. - The document discusses Amazon's expansion from books to other product categories, services like Fulfillment by Amazon, and its platform business model to build an ecosystem of buyers and sellers. It suggests eBay could consider a similarly bold strategic move to spur stronger growth.

1. Could eBay consider an even more radical move similar
to Amazon?
Min Woo
Woo Suk
Clement

3. “ be Earth’s most customer-centric “ Pioneer new communities around
company for three primary customer sets :
customers, sellers, and developers “ GOAL world built on commerce Sustained
by trust / Inspired by Opportunity ”

4. Amazon eBay Notably,
CAGR
.Revenue 32% 15% of 10%
.Operating Income 27% 14% Per year
.Net Income 26% 21%
Share Price
37% 6%
CAGR (2001 - 2010)
GMV in USA
(Bilion USD)
Amazon eBay
35
32
30
25 25 25.2
25 26
24.5
20
14 82
17.5
18
15
14
12
10 10
7 7.5
5 4.8 5 5.2
3.5 3.7
0
[Source: Cowen and Company (2011), Investment
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Controversies Series : Amazon.com]

5. 1995 1996 2002 2006 2007

6. 1995 1996 2002 2006 2007
“Amazon Webstore Service”
서비스종류 내용
GMV in USA
(Bilion USD)
Amazon eBay
35
32
30
25 25 25.2
25 26
24.5
20
17.5
18
15
14
12
10 10
7 7.5
5 4.8 5 5.2
3.5 3.7
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

7. ‘95 ‘96 '97 ‘99 2002 2006 2007 2010 “ get big fast “
.
‘96
‘99
2002
2006 “ Enhancing Customer Convenience “
2007
“ Fulfillment by Amazon(FBA) “
2011
“Full suite of service”

8. ‘95 ‘96 '97 ‘99 2002 2006 2007 2010 “ get big fast “
.
Contents
‘96 Distribution
Kindle Eco-system
‘99 Market Place
As Platform
2002 Tech & Infra
2006 “ Enhancing Customer Convenience “
2007
Move into IT Service by Amazon(FBA) “
“ Fulfillment
2011
“Full suite of(SaaS, IaaS)
service”

9. * Expanding into Fixed-Price *Adding “Buy-It-Now” Features(In 2000) *Storefront
Sales (In 2000) : Minimize bargain time : Immediate purchase available : Individual online store
Activation of C2C Market transaction, expansion of other internet transactions

10. Enablers for “Buy”
eBay
Trading
(Vertical Expansion)
Seller Community Buyer
system
Expansion of “Buy” Platform
(Horizontal Expansion)
Enablers for “ Mobile”
(Move into M-commerce)

11. Sellers
Sellers
e-Shop e-Shop
Custom Buyer
er

12. ①Resource ②Open
-Driven -Driven
Value Proposition
System becomes more efficient with
④Trend- growth and enhancement
Driven
③Customer Jeff Bezos emphasized fast growth before
-Driven competitors realize what they are striving
for based on this model so that it becomes
difficult for competitors to catch up later on