eBay is an online auction and shopping website that was founded in 1995 and connects buyers and sellers globally through three main auction formats. It has grown significantly over the years and now also owns the online payment platform PayPal. While eBay was originally very successful, it has faced increasing competition in recent years from sites like Amazon. The new CEO John Donahoe implemented strategic changes in 2008 to refocus eBay on fixed-price sales rather than auctions, which was controversial but aimed to better meet modern customer demands.

1. Connecting buyers and
sellers globally

2. What is eBay?
 Online auction and shopping
website
 Offers three types of auction:
i. Auction style listings
ii. Fixed price format
iii. Fixed price format with
best offer

3. The history of eBay Inc
 Founded in 1995
 Went public on 1998
 Has its own online pay service,
PayPal Inc
 First CEO-Meg Whitman
 John Donahoe took over in 2008

4. 5 Amazing Facts
1) Ebay was originally called
AuctionWeb

5. 2) EBay was launched during
 Labour Day in 1995
 By French-born Iranian-
American computer programmer
Pierre Omidyar
 In his living room in San
Jose,California

6. 3) The first AuctionWeb logo
 Was called Death Bar
 By eBay staff
 Boxy black-and-white logo

7. 4) First item listed on eBay
 Broken laser pointer
 Sold for $14.83
 Experiment by Omidyar

8. 5) Most expensive purchase
 Frank Mulder’s Gigayacht(10
multi-level VIP rooms,8 guest
rooms,a movie theater,a
helicopter pad)
 Sold for $168 million in 2006
 To Russian billionaire Roman
Abramovich

9. The world’s largest online marketplace – where
practically anyone can trade practically

12. Five Forces Model of
Competition
Substitute - Traditional Auction
Supplier – Industry Buyer – Bargain
Casual/Corporate Rivalry - Hunter/Professional
seller Amazon buyers
Potential New Entrants – Tech barriers of
entry does not exist

13. Meg Whitman (1998-2007) John Donahue (2008-
Present)

15. CEO JOHN
DONAHUE (2008 -
PRESENT)
Revolutionary strategy for eBay

16. By 2008, eBay has fallen
behind…

17. And thus,….

22. WILL THESE CHANGES……
BE A GAME – CHANGING TRANSFORMATION
OR SUICIDAL?

25. SWOT Analysis

26. Strengths
 Brand Recognition
 Popularity
 Ownership of PayPal
 Business Model

27. Weaknesses
 Advertising revenue
 Increased expectations
 Limited control on fraud
 Technology malfunctions

28. Opportunities
 Increased internet usage
 International expansion
 Acquisition of yahoo.com’s online
shop
 Divestment of Skype

29. Threats
 Consumer confidence
 Seasonality
 Ease of entry into market
 Interest and foreign currency
exchange rates

30. QUESTIONS

31. Question 1
Analyze the marketing environment and
the forces shaping eBay’s business over
the years.
• Early years
- Marketing environment was simple and
dynamic
- Few competitors
- Threat of substitutes
- Few suppliers
- High importance of supplier’s products
- Specialised products

32.  Recently
- Marketing environment complex and
dynamic
- Many suppliers
- More competitors
- High importance of suppliers product
- Standardised and specialised items.
- Product differentiation

33. Question 2
How has the change in the nature of
eBay sellers affected the creation of
value for buyers.
- Fixed price, quick service and free
shipping

34. Question 3
Do you agree or disagree with
Donahoe that eBay’s current strategy
doesn’t mean that certain sellers will
lose.
- Disagree
- Traditional retailers lose out

35. Question 4
Is eBay doing the right thing by
sticking to its current strategy. What
changes, if any, would you
recommend to Donahoe?
- Right thing to a certain extent
- Have a fee reduction for auction
bidding systems