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Ebay4
- 1.
- 2. Table of Contents 1. Introduction 2. Business Model 3. Value chain 4. Competitive forces 5. Financial Situation 6. Challenges 7. Long-term Growth 8. Recommendations
- 3. eBay Overview Foundedin 1995 by Pierre Omidyar #1 in e-commerce, online payment and voice over Internet Store no inventory & Produce no products 16,200 people (including temporary employees)
- 4. eBay Overview 81,000,000average monthly visitors 133,096,249 concurrent listings $60,146,000,000 PayPal transactions
- 5. eBay: “ technology hasalways been a key enabler of our growth and a tool to connect and empower millions of people globally”
- 6. eBay Businesses Marketplaces Provide platforms for online commerce Payments Provide online payment solutions Communications Provide low-cost connectivity
- 7. eBay Business Model Acquisition & Network Partnerships Pays Feedback Fees Product categories Seller Communication Buyer Sells
- 8. eBay Value chain Strategic Alliance and Acquisition Legal Human Resource Technology Value Added Marketing Product Purchasing Communicati Payment Peer Customer • Word of Categories process on • Variable review services mouth • Old and • Traditional • Ask a • Reliable • A Rules, •Partnerships new auction question Trust and • Classifieds • Variable • Buy it now • Skype Safety websites • Fixed price • Click to call committee • Voices • Community Wiki • My Collectible
- 9. eBay Competitive Forces New Market Entrants - Froogle - The industry is very attractive with no significant barriers to enter Substitutions - Traditional Buyers Rivalries retail - Strong competitors (Amazon, - Strong buyer - Switching cost bargaining power Yahoo, MSN, FNAC) from online with many - Others (ubid.com, overstock.com, auction to options in the CQout.com, bidville.com) traditional retail industry is high Suppliers -Strong bargaining power for software suppliers - Weak bargaining power for product suppliers
- 10. $ Millions Net Income 600 50% 40% Net income 500 30% Link relative Year to year 400 20% 10% 300 0% 200 -10% -20% 100 -30% 0 -40% 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3
- 11. MARKETPLACES $ Millions 1600 25% 1400 20% 15% Internet 1200 Auction 10% 1000 Link relative 5% 800 0% Year to year 600 -5% 400 -10% 200 -15% 0 -20% 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3
- 12. PAYMENTS $Millions 700 35% 680 30% 660 25% Paypal 640 20% 620 Link relative 15% 600 Year to Year 10% 580 5% 560 540 0% 520 -5% 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3
- 13. INCOME FROM OPERATION $ Millions 2300 30% 25% 2200 20% 2100 15% Total operation income 2000 10% Link Relative 5% 1900 0% Year to Year 1800 -5% 1700 -10% 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3
- 14. STOCK PRICE IN10 YEARS
- 15. STOCK PRICE IN5 YEARS
- 16. STOCK PRICE IN1 YEAR
- 17. Challenges • Exposure to large contingent liabilities due to litigations Weaknesses • Insufficient screening process to control counterfeit products • Exposure to internet fraud and security concerns. • Increased business risks because of Threats technological obsolesces and reliance on third parties for licenses • Unavailability of services leads to loss of income • Increasing competition
- 18. Can eBay stillGrow? Valuable Assets - Strong market position - Effective Integration Rareness of segments - Efficient business - Strong Imitability model market - Efficient - Rapid growth of Organization internet display and position business Support classifieds ads - Efficient model - Increasing popularity of used goods business - Increasing reliance on model alternative payment systems due to safety issues - Rapid international expansion
- 19. Recommendations • MakeeBay interface easier to use • Improve value and selection by combining fixed price with auction-style listing • Expand Payment segment, i.e. Paypal
- 20. Recommendations • Expandproduct and service base • Acquisition or mergers must fit strategic business of the company. • Diversify, but unprofitable/unfit businesses should be closed
Editor's Notes
- #4 - eBay marketplace continues to be the largest in the world with nearly $60 billion of gross merchandise volume
- #5 - eBay marketplace continues to be the largest in the world with nearly $60 billion of gross merchandise volume
- #6 National Medal of Technology and Innovation is America’s highest honor for technological and scientific achievement
- #7 Marketplaces:including the traditional eBay.com platform, our other online platforms, such as our online classifieds businesses, our secondary tickets marketplace (StubHub), our online shopping comparison website (Shopping.com), our apartment listing service platform (Rent.com), as well as our fixed price media marketplace (Half.com)Payments : PayPal and Bill Me LaterCommunication: Skype, enables VoIP calls between Skype users and provides low-cost connectivity to traditional fixed-line and mobile telephones.
- #8 1/ Acquisitions many online shopping sites (notes next page) Draw more sellers, buyers, expand product basePartnerships with Google, and Yahoo
- #9 2/ Product categories expansion : create directory reference Only used, refurbished product>> new also Stubhub.com: sell all kind of event tickets Rent.com:apartment house for rent Half.com:cheap used products, no auction process ProvideKijiji.com:free local ads (US), Den Bla° Avis, Gumtree.com, LoQUo.com, OpusForum, Marktplaats.nl and mobile.deEbay Motors… Note: acquired Gmarket in 20093/ 4/ variety of Communication method . Note 70% of Skype was sold in late 2009 for 2.75 billion (initial bought 2.6 billion)5/ variety of payment systems Paypal, Paymate, ProPay, Moneybookers, BillMeLater : offer an ease of transaction6/7/ Customer service: Rules, Trust and safety committee: monitors transaction, prevent fraud, solve timely troubleshooting Voices :meet 10 times per year with buyer and sellers, keep in touch with community Community wiki: information source for buyers and sellers to update and edit best practices, tips and tricks My Collectible: writing reviews, promote and share information between users
- #10 - Software suppliers: technology patent, legal support for intellectual property, and fraud prevention system- Product suppliers: with many suppliers in the industry (Books, DVDs, CDs)
- #19 - The question of value asks how valuable the resource is to the firm in terms of enabling the firm to respond to threats and to create value. First, before the firm can determine resource value, it must first recognize the threats and opportunities in the external environment. Second, firms must realize that the value of a particular resource is dynamic in the long run. The question of rareness builds on the question of value, asking how many competing firms already possess that valuable resource The question of imitability addresses the sustainability of strategies by looking at the ease and cost with which a competitor may be able to duplicate or find a substitute for the valuable resource The question of organization considers whether the firm has the internal capabilities and systems that will allow the firm to extract the maximum value from the resource
- #20 - A&M : Skype
- #21 - A&M : Skype