CASE: EBAY: IN A LEAGUE BY ITSELF

CONTENTS

INTRODUCTION SWOT ANALYSIS STRATEGY TO SUSTAIN ITS MARKET DOMINANCE

INTRODUCTION

EBAY’S OVERVIEW

FINANCIALS

SWOT ANALYSIS

STRENGTH

WEAKNESSES

OPPORTUNITIES

THREATS

STRENGTH Leading online trading forum Social Responsibility Brand Equity Partnerships with 250 US/international companies Global reach (B2C, C2C) eBay University Unlimited scope of categories Publicly Traded No brick warehousing Zero traditional sales force Trust Financial strength Pioneers

WEAKNESSES

Lack of in depth descriptions of products Inability to measure illegal activity on site (fraud –

esp. C2C) Inability to penetrate some foreign markets Technology malfunctions

OPPORTUNITIES

Changing lifestyles of people Acquisition of smaller substitutes or complimentary

sites Continued international expansion Expand community services Discount rates

THREATS

Increasing number of online stores

Increasing number of online auction sites

Rapid growth of Amazon.com

Thieves

STRATEGY TO SUSTAIN ITS MARKET DOMINANCE

The move to go public

eBay's business model

The strategy

BUSINESS MODEL Creating and maintaining a person-to-person trading

community Function as a value added facilitator Provide a supportive infrastructure Zero inventory & without having traditional sales force Profit centers:

Domestic business International business and Payment

SPECIFIC ELEMENTS OF BUSINESS MODEL

Largest online trading forum Compelling and entertaining environment Establishing trust & safety programs (Safeharbor) Cost effective and Convenient trading Strong community affinity An intuitive user interface

THREE MAIN TACTICS

To build strategic partnerships.

To look for customer feedback for constantly making

changes and improvements.

To monitor its internal and external environments for

possible opportunities.

STRATEGY

Broaden the existing trading platform

Foster eBay community affinity

Enhance features & functionality

Expand value-added services

Continue to Develop: Build new user community Acquire local organization Form partnership with a local company

ANY QUESTIONS?

Thank You