Post on 14-Jun-2015
transcript
Connecting buyers and sellers globally
What is eBay?Online auction and shopping website
Offers three types of auction:i. Auction style listingsii. Fixed price formatiii. Fixed price format with best
offer
The history of eBay IncFounded in 1995Went public on 1998Has its own online pay service,
PayPal IncFirst CEO-Meg WhitmanJohn Donahoe took over in 2008
5 Amazing Facts1) Ebay was originally called
AuctionWeb
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
3) The first AuctionWeb logo
Was called Death Bar By eBay staffBoxy black-and-white logo
4) First item listed on eBay
Broken laser pointerSold for $14.83Experiment by Omidyar
5) Most expensive purchaseFrank Mulder’s Gigayacht(10 multi-
level VIP rooms,8 guest rooms,a movie theater,a helicopter pad)
Sold for $168 million in 2006To Russian billionaire Roman
Abramovich
The world’s largest online marketplace – where practically anyone can trade practically
anything…almost anywhere
Five Forces Model of Competition
Industry Rivalry - Amazon
Substitute -
Traditional Auction
Buyer – Bargain
Hunter/Professional buyers
Potential New
Entrants – Tech
barriers of entry does not exist
Supplier – Casual/Cor
porate seller
Meg Whitman (1998-2007) John Donahue (2008-Present)
Revolutionary strategy for eBay
CEO JOHN DONAHUE (2008
- PRESENT)
By 2008, eBay has fallen behind…
And thus,….
WILL THESE CHANGES……BE A GAME – CHANGING TRANSFORMATION OR SUICIDAL?
SWOT Analysis
Strengths
Brand Recognition
Popularity
Ownership of PayPal
Business Model
Weaknesses
Advertising revenue
Increased expectations
Limited control on fraud
Technology malfunctions
Opportunities
Increased internet usage
International expansion
Acquisition of yahoo.com’s online shop
Divestment of Skype
Threats
Consumer confidence
Seasonality
Ease of entry into market
Interest and foreign currency exchange rates
QUESTIONS
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
Recently- Marketing environment complex
and dynamic- Many suppliers- More competitors- High importance of suppliers
product- Standardised and specialised
items.- Product differentiation
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
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
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