eBay India Strategy Presentation
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Team Cyclopentane (C5) presentation during our first semester of our MBA program. We were the winning team!
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eBay India Strategy Presentation
- 1. India Presented by: Team Cyclopentane
- 2. In The Beginning - 19951 Pierre Omidyar ULTIMATE VISION CORE VALUES COMPANY FOCUS
- 4. The McKinsey 7S Model2 Shared Values
- 5. Cultural Groundwork1,2,3,4 Clear organizational structure; supportive environment Shared community values of users Community safety GETTING BIG WHILE STAYING SMALL
- 7. Acquisitions pre-established community connection5,6
- 8. Fill-in & adapt to culture-specific values
- 9. Baazee- 2004
- 10. “Nascent but growing market”
- 11. Facilitate & improve current trading customs
- 12. System capacity
- 14. IPO ‘98
- 16. Niche markets, pre-established customer baseShort-Term1 Global
- 17. Current Landscape – India 9-15 2 million+ live listings at any given time Competition:
- 18. Cultural and Strategic Issues - “3M”
- 19. Solutions & Offerings eBay India has relied on both traditional approaches and initiatives specific to the Indian market in an attempt to better serve the Indian consumer. Worldwide Approaches: eBay Guarantee Groupbuy Program
- 20. East is East Super Optimized Mobile eBay SMS Pricecheck Reliance World, Trading Points Power Mentor Program India Specific Services & Offerings
- 25. Recommendation MobiCash™ PREPAY PURCHASE DEDUCT
- 27. No need for accounts / cards / minimum balance
- 29. Confidence & Trust (no risk to personal savings)30% of Population21
- 33. Thank you
- 34. End Notes Meg Whitman at eBay Inc (A). HBS # 9-401-024. Nov 17, 2005 (from OB713 CoursePack) Johnson, L. A Note on the 7-S Model. BU SMG, #97-03. 1997. (from OB713 CoursePack) Schein, E. “Uncovering the Levels of Culture” in Organizational Culture and Leadership, 2nd ed. San Francisco: Jossey-Bass (from OB713 CoursePack) eBay’s Meg Whitman on Building a Company’s Culture. Transcript from Drucker Institute Interview. March 27, 2009. http://www.businessweek.com/managing/content/mar2009/ca20090327_626373.htm Hill, B. “What Makes eBay Invincible” eCommerce Times, 3/4/03. Accessed: 9/13/11. http://www.ecommercetimes.com/story/20900.html Schonfeld, E. “The World According to eBay.”Business2.0 Magazine, CNN Money. Jan 1, 2005. Accessed: 9/6/11 http://money.cnn.com/magazines/business2/business2_archive/2005/01/01/8250238/index.htm eBay to Acquire India’s Baazee.com. eBay Investor Press Release, June 22, 2004. Accessed 9/6/11. http://investor.ebay.com/releasedetail.cfm?ReleaseID=137656 “What’s Behind the Overseas Forays of U.S. Online Giants?” Knowledge@Wharton. July 28, 2004. Accessed: 9/12/11. http://knowledge.wharton.upenn.edu/article.cfm?articleid=1013 http://pages.ebay.in/community/aboutebay/news/infastfacts.html (user info) http://www.internetworldstats.com/top20.htm (internet user info) http://www.ciol.com/News/News/News-Reports/India-a-potential-market-for-eBay/146064/0/ (growth info) http://www.pluggd.in/india-online-classified-industry/online-shopping-india-ebay-sells-one-product-a-min-2406/ (segmentation by age) http://pages.ebay.in/community/aboutebay/news/infastfacts.html ( listings info) http://pages.ebay.in/community/aboutebay/news/infastfacts.html (frequently sold items info) http://dare.co.in/strategy/marketing-branding/alternatives-to-ebay.htm (competitors) http://www.chillibreeze.com/articles_various/E-tailing.asp( strategic and cultural Issues info ) Spencer Stuart, “The Indian Consumer Market: A Roundtable Discussion”, 2008, at p. 14. http://content.spencerstuart.com/sswebsite/pdf/lib/India_ConsumerRoundtable_web.pdf Seeking Alpha, “Household Debt, Gross Domestic Savings: China vs. Other Countries, April 25, 2010. http://seekingalpha.com/article/200676-household-debt-gross-domestic-savings-china-vs-other-countries Internet World Stats, “Top 20 Countries with the Highest Number of Internet Users”, 2011. http://www.internetworldstats.com/top20.htm Telcoma Technologies, “Mobile Phone Subscribers in India Rises to 811.59 Million”, Apr. 30, 2011. http://www.telcoma.in/en/2011/04/mobile-phone-subscribers-in-india-rises-to-811-59-million/ Rural Poverty Portal, India Statistics, 2009. http://www.ruralpovertyportal.org/web/guest/country/statistics/tags/india “M-Pesa: Kenya’s Mobile Wallet Revolution”, BBC News, Nov. 22, 2010. http://www.bbc.co.uk/news/business-11793290
- 35. End Notes http://pages.ebay.in/globaleasybuy/help/faqs.html#FAQ_S3 (global easy buy) http://shopping.ebay.in/mobile/?_qi=RTM950176 (SMS Pricecheck) http://pages.ebay.in/aboutebay/About_PaisaPay.html (PaisaPay) http://pages.ebay.in/help/ebaysocialshopping_faqs.html (Group Buy programs) http://pages.ebay.in/aboutebay/eBay_Guarantee.html(Ebay Guarantee) http://forums.ebay.in/thread.jspa?threadID=500008263&tstart=0&mod=1294835875177 (Interview with GM) http://www.afaqs.com/news/story.html?sid=19098 (Reliance Web World and SMS Gupshup, Power Mentor) http://techcircle.vccircle.com/500/ebay-india-launches-super-optimised-mobile-site-m-ebay-in-sms-price-check-facility/ (Mobile Platforms) http://www.ciol.com/News/News/News-Reports/India-a-potential-market-for-eBay/146064/0/
Editor's Notes
- Huge growth in only one year! Represents a fundamental change to the nature of the organization
- 7-s: culture, shared values are “the glue which holds it all together” if values do not align, ultimately progress and really beautiful work are unlikely to occur (2)…so: Whitman’s first stop: solidifying the internal and external cultures of eBay. They already have something incredible, just needs to be clarified and strengthened to support the changes that must occur for their inevitable & desired growth.
- Must preserve user-centric external culture & democratic internal culture or risk losing key users Fits culture level model well (3) -- Essentially, their basic assumption is that they are part of the community at large, they are at the level of the community. Thus, they took on certain values (those stated in first slide – empowerment of users, trust, respect, autonomy, quality) to support and justify this assumption. On the surface level, they made these and maintain the close-knit community environment, despite their massive growth. These values and assumptions were made visible to the user community and the employee community in the restructuring and definition of their organizational structure, the embracement of an open door/supportive policy, and the creation of the “eBay promise” designed to ensure the safety of users and the integrity of sellers (among other things)Meg Whitman: “I think [corporate culture] means the set of values & principles by which you run the company, that really begin to become part of the DNA of the company” (4)
- Bazee: “india’s biggest online marketplace” - $50B (7, 8)17M internet users in 2004, expected to be 2nd biggest internet market (behind China) though use is paltry wrt current population (8)
- Talk about the items which are sold most
- Talk about Indian “Culture” and how ebay does not address many of the issues in India
- India is a savings culture, not credit oriented.
- Just going mobile won’t work, as we saw in the previous slides, the issues are bigger! So what do we suggest?
- MOBILE IS THE FUTURE!
- “Form partnership with mobile carriers” Can be rolled out in next couple years, tech. already exists. “And who will this benefit?”
- Confidence- not linked to personal account savings. Do not want to risk savings. Brand recognition. CULTURE: Indians don’t like risk.
- Mobile is future – iPhones, etc. Internet is going mobile
- This is a summary. Do we need to include this if we’re pressed for time? We discussed in class that cultural assumptions are difficult to change.
- This is a summary. Do we need to include this if we’re pressed for time?