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CAN EBAY CONTINUE GROWING? 
CASE STUDY
Introduction 
o E-bay was founded on September 3rd 1995, by Pierre 
Omidyar. 
o It’s headquarters is in San Jose, California, U.S. 
o It’s CEO is John Donahoe and CHAIRMAN is Pierre 
Omidyar. 
o E bay had a revenue of 9.156 billion dollars in 2010. 
o 17700 employees are working in Ebay.
 E-bay.com is an online auction service whose 
business model is ideally suited to the Web. 
 E-bay stores no inventory and ships no products. Instead, 
it derives its revenue from the movement of information, 
an ideal task for the Internet. 
 Since eBay was founded in 1995 by Pierre Omidyar the 
company has been profitable, attracting more than 200 
million users by 2006. 
 The success of eBay relies on a unique formula. E-Bay 
derives the bulk of its revenue from fees and commissions 
associated with its trading services.
E bay headquarters in SanJose.
Consumer oriented 
trading.... 
 "Connecting buyers and sellers globally.“ 
 "What ever it is, you can get it on eBay.“ 
 "Buy it, sell it, love it"
Interesting in eBAY
Products in which E-bay 
deals 
EBAY MAIN DEALS 
CLOTHING 
FINE ARTS 
AUTOMOBILES 
JEWELLARY 
CONSUMER 
ELECTRONICS 
HOUSEWARES
Restricted items 
of eBay…
How eBay works??
Questions of case???
1)What is eBay’s business model and business 
strategy? How successful has 
it been? 
 E-bay is an online market place and an online auction 
service. 
 It stores no inventory and ships no products. Instead it 
derives its revenue from the movement of information. 
 E-bay’s business strategy is to generate revenue from the 
fees and commission charged to the customers, who use 
the site to exchange products. 
 According to this case the company has been profitable 
and had attracted more then 200 million user by 2006, till 
2005 ebay users listed 1.8 billion items in auctions. 
 One of the most successful part of the company is that 
it’s fully automated.
2)What are the problems that eBay 
is currently facing? 
 One problem is that analysts report that many of 
eBay’s top sellers aren’t interested in adding 
voice calls to their sales models. 
 Another problem is that since Ebay is growing 
internationally, it may not be able to keep up 
with all the different laws found in each country. 
 One of the problem is auction’s honesty and 
integrity, company have some control over this 
issue but not complete control. 
 Customer service is another problem, and it is 
due to size of the company.
3) How is eBay trying to solve these problems? 
Are there any other solution that eBay should 
consider? 
 One solution includes great expansion. 
 Ebay has added extra measures of protection such 
as additional vehicle warranties and purchase 
protection. 
 Ebay has also entered into a number of relationships 
with major competitors such as Yahoo and Google. 
 Ebay purchased PayPal which is essentially a peer-to- 
peer payment system. 
 To remain in touch with its customers, Ebay has 
started a program called Voices. 
 It has also tried to create a dialogue between 
customers by creating a WIKI.
4)What management, organization, and 
technological factors play a role in eBay’s 
response to its problems? 
• Management have to ask the buyer and seller 
are the new services offered by the company are 
satisfactory or not. 
• Organization factors include having enough 
employees to carry out the changes to the 
company. 
• Technological factors include the components 
and programmes that will be run by eBay such as 
PayPal AND Skype.
5) Will eBay be successful in long run? 
Why or why not? 
 Yes, eBay will be successful, but need a lot of 
work to do. 
 Case says that eBay is declining in sales(in last) 
 So, they have to design new ways to attract new 
buyers. 
 Ebay is trying to implement more interactivity 
through skype, so that customer sellers can 
communicate two way. 
 Also ebay is pricey transparent, use of wiki is also 
adding on, but have to have control upon frauds.
Thank you…..

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Can Ebay continue growing

  • 1. CAN EBAY CONTINUE GROWING? CASE STUDY
  • 2. Introduction o E-bay was founded on September 3rd 1995, by Pierre Omidyar. o It’s headquarters is in San Jose, California, U.S. o It’s CEO is John Donahoe and CHAIRMAN is Pierre Omidyar. o E bay had a revenue of 9.156 billion dollars in 2010. o 17700 employees are working in Ebay.
  • 3.  E-bay.com is an online auction service whose business model is ideally suited to the Web.  E-bay stores no inventory and ships no products. Instead, it derives its revenue from the movement of information, an ideal task for the Internet.  Since eBay was founded in 1995 by Pierre Omidyar the company has been profitable, attracting more than 200 million users by 2006.  The success of eBay relies on a unique formula. E-Bay derives the bulk of its revenue from fees and commissions associated with its trading services.
  • 4. E bay headquarters in SanJose.
  • 5. Consumer oriented trading....  "Connecting buyers and sellers globally.“  "What ever it is, you can get it on eBay.“  "Buy it, sell it, love it"
  • 7. Products in which E-bay deals EBAY MAIN DEALS CLOTHING FINE ARTS AUTOMOBILES JEWELLARY CONSUMER ELECTRONICS HOUSEWARES
  • 11. 1)What is eBay’s business model and business strategy? How successful has it been?  E-bay is an online market place and an online auction service.  It stores no inventory and ships no products. Instead it derives its revenue from the movement of information.  E-bay’s business strategy is to generate revenue from the fees and commission charged to the customers, who use the site to exchange products.  According to this case the company has been profitable and had attracted more then 200 million user by 2006, till 2005 ebay users listed 1.8 billion items in auctions.  One of the most successful part of the company is that it’s fully automated.
  • 12. 2)What are the problems that eBay is currently facing?  One problem is that analysts report that many of eBay’s top sellers aren’t interested in adding voice calls to their sales models.  Another problem is that since Ebay is growing internationally, it may not be able to keep up with all the different laws found in each country.  One of the problem is auction’s honesty and integrity, company have some control over this issue but not complete control.  Customer service is another problem, and it is due to size of the company.
  • 13. 3) How is eBay trying to solve these problems? Are there any other solution that eBay should consider?  One solution includes great expansion.  Ebay has added extra measures of protection such as additional vehicle warranties and purchase protection.  Ebay has also entered into a number of relationships with major competitors such as Yahoo and Google.  Ebay purchased PayPal which is essentially a peer-to- peer payment system.  To remain in touch with its customers, Ebay has started a program called Voices.  It has also tried to create a dialogue between customers by creating a WIKI.
  • 14. 4)What management, organization, and technological factors play a role in eBay’s response to its problems? • Management have to ask the buyer and seller are the new services offered by the company are satisfactory or not. • Organization factors include having enough employees to carry out the changes to the company. • Technological factors include the components and programmes that will be run by eBay such as PayPal AND Skype.
  • 15. 5) Will eBay be successful in long run? Why or why not?  Yes, eBay will be successful, but need a lot of work to do.  Case says that eBay is declining in sales(in last)  So, they have to design new ways to attract new buyers.  Ebay is trying to implement more interactivity through skype, so that customer sellers can communicate two way.  Also ebay is pricey transparent, use of wiki is also adding on, but have to have control upon frauds.