Ebay was founded in 1995 and has since grown to over 200 million users by 2006. While ebay's business model of deriving revenue from fees charged to buyers and sellers using its platform has proven successful, it now faces challenges in maintaining growth. These include lack of interest from top sellers in incorporating new features, difficulties keeping up with varying international laws, and issues around auction integrity and large-scale customer service. Ebay is trying to address these problems through expansion, additional buyer protections, partnerships with competitors, the acquisition of PayPal, and initiatives to improve customer communication and feedback. Management must ensure new services satisfy customers while technological and organizational changes support ongoing adaptations to sustain long term viability.

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"

6. Interesting in eBAY

7. Products in which E-bay
deals
EBAY MAIN DEALS
CLOTHING
FINE ARTS
AUTOMOBILES
JEWELLARY
CONSUMER
ELECTRONICS
HOUSEWARES

8. Restricted items
of eBay…

9. How eBay works??

10. Questions of case???

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.

16. Thank you…..