E bay strategy

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Information about E bay strategy

Published on September 18, 2014

Author: YogeshDwivedi19

Source: slideshare.net


E Bay Strategy

9/18/2014 Slide no. 1

Agenda • eBay – The Company • Business Model of eBay • Acquisitions • Pricing Methods • Auction Methods of eBay • Strengths • Vulnerabilities • Recommendations 9/18/2014 Slide no. 2

eBay – The company • eBay’s mission is ‘to provide a global trading platform where practically anyone can trade practically anything.” • The online auction website was founded as AuctionWeb in San Jose, California, on September 3, 1995, by French-born Iranian computer programmer Pierre Omidyar. • The company officially changed the name of its service from AuctionWeb to eBay in September 1997 • eBay is the world's largest online marketplace, where practically anyone can buy and sell practically anything, with more than 90 million active users globally 9/18/2014 Slide no. 3

Business Model of eBay • eBay is an online person-to-person trading community on the Internet, where buyers & sellers come together • sellers are permitted to list items for sale, buyers to bid on items of interest and all eBay users to browse through listed items • Browsing and bidding on auctions is free of charge • Revenue generation : sellers are charged two kinds of charges – Insertion Fee • additional listing options – A Final Value fee 9/18/2014 Slide no. 4.

Acquisitions • A total of 26 companies have been acquired as of April 2008. Few of them are: – PayPal: PayPal has made it possible for people to pay and get paid online across different locations, currencies, and languages. – Skype: connect people around the world & expanded its customer base – StumbleUpon : StumbleUpon is a discovery engine that finds the best of the web. It uses positive and negative user ratings to form collaborative opinions on website quality. 9/18/2014 Slide no. 5

Pricing Method • 6 types of pricing methods – Markup Pricing – Target-Return Pricing – Perceived Value Pricing – Value Pricing – Going-rate Pricing – Auction type pricing • English auction • Dutch auction • Sealed-bid auction 9/18/2014 Slide no. 6

Auction Methods of eBay • Normal Auctions • Reserve Auctions • Fixed Price or ‘Buy it Now’ auctions • Multiple items or ‘Dutch’ auctions 9/18/2014 Slide no. 7

Strengths • eBay, worlds largest online auction website with more than 90 million active users globally. • The term 'eBay' has become a generic term for online auctions. • Effective use of Customer Relationship Management • EBay now controls the biggest share in the Customer to Customer e-market 9/18/2014 Slide no. 8

Strengths • Provides extra ordinary search tool • EBay.com was rated to be the easiest website to navigate by special rating websites like Gomez.com • Business Model : No issues of managing inventory • eBay’s Intellectual property • Diversification of products & markets • Acquisitions 9/18/2014 Slide no. 9

Vulnerabilities • Fake Auctions • System breakdown could effect the trading activities of eBay • Competitors – Bonanzle – Amazon.com – Yahoo – Overstock.com – Google • Payment method • Shipping of products • Inability to control the contents of the auction and auction items • Expansion into Different Geographies 9/18/2014 Slide no. 10

Recommendations 9/18/2014 Slide no. 11

Recommendations(Contd.) 9/18/2014 Slide no. 12

References Marketing Management 13edition-Philip Kotler http://pages.cs.brandeis.edu/~magnus/ief248a/eBay/history.ht ml http://techcrunch.com/2009/09/04/ebay-acquisition-map-shows- where-it-got-on-the-wrong-track/ http://www.ebayinc.com http://en.wikipedia.org/wiki/Criticism_of_eBay 9/18/2014 Slide no. 13

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