eBay

Business Case PresentationMarketing 476

By: Yoo Chin Jenny Kim

Overview

eBay is an online website for shopping and auctioning founded by Pierre Omidyar

History

It is one of the largest e-commerce companies

With more than 200 million users, eBay is a consumer-to-consumer marketplace

It allows people and businesses to buy and sell goods and services, globally

Decentralized Structure

eBay utilizes a decentralized structure in which it uses a highly interconnected network that allows users to auction items directly to each other

It allows users to sell and buy goods and services directly

It allows buyers and sellers to rate each other

Chaordic Principles

eBay is a self-governing, self-organizing, complex organization

Blends order and chaos by utilizing both centralized and decentralized structures

It provides order by making users log in and requiring identification

Doesn’t offer some type of assurance against fraud It has the buy now option (fixed price) which is a

unique benefit to the consumers It also provides mobile payment and continues to

innovate This allows eBay to remain stable and remain as one of

the largest marketplaces

Eco-system:

A community which helps to produce goods and services of value for the consumers. The members in the ecosystem are comprised of suppliers, lead producers, competitors, and stakeholders.

Eco-system: Key competitors

Key competitors:- Amazon started off as a bookstore and now expanded to which almost any item searched can be purchased; though Amazon is a key competitor, Amazon sometimes works together with eBay- Craigslist is a classified advertising website for housing, jobs, and other personal sales

Eco-system: Complimentary Services

PayPal is a payment service that stores credit card information so the user can check out with ease

Services for gifts and tools Stuff by eBay is an easy way to

organize purchases by centralizing online receipts

Cell phone center provides services to users such as looking for a new phone at a great price

Eco-system: Customers/Stakeholders

eBay has customers all over the world User base of over 200 million eBay Inc. is an important associated group

within eBay that enables commerce and investor relations

Merchants worldwide Business owners and startup businesses

who rely on eBay to sell their goods and services

Investors who have purchased stock

Eco-system: Collaborating, Coordinating, and Competing

Collaborative, coordinative, and competitive in that the decentralized structure allows people to come together to buy and sell products and goods worldwide • facilitates convenient and fast

customer service• purchased PayPal to offer a safe and

easy way to complete transactions

Eco-system: Collaborating, Coordinating, and Competing Cont.

• Recognizes threat and competition and strives to provide valuable service through the use of complementary services (Stuff by eBay)

• Convenient payment methods (PayPal) to overcome competition

• Provides rewards (earning 2% of their money back) through eBay bucks

• improvements and developments are constantly made by the eBay team

Interesting Assets

eBay provides numerous commerce features • PayPal – faster, safer way to pay• GSI Commerce – leading provider of e-

commerce and interactive marketing services

• X.Commerce – open commerce platform for all merchants

Funding

First funding from Bench Mark Capital in the amount of $6,700,000

Soon after, went public and started selling shares on the NYSE

Relies on crowd funding Relies on peer production (crowd wisdom);

draw on own local knowledge (buyers and sellers) to facilitate a growing marketplace

Ability to aggregate

Funding cont.

Relies on crowd sourcing – eBay is a collaborative environment in which it provides a platform for users to buy and sell to other users directly

User-to-User distribution – no inventory Personalizes and customizes for product

searches Provides filters for products and services such

as price, location, and top-rated sellers

Revenue Model

Utilizes the transaction model – traditional model

Profit sharing and incentives - eBay uses broker fees – take percentage of whatever the action is – as sellers get most of the money, eBay gets a portion of it because they provide the platform for which the users can sell

Ownership/Intellectual Property

The eBay name and logo are registered trademarks in the U.S. as well as internationally

The use of the name and logo are only permitted if the specific individual or organization has a written license agreement

The End.