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