ebaycasestudy

8/13/2019 eBayCasestudy

1/41

eBayin a league by itself

A Case Study

By

Louis Marina & Patrick Kreiser


2/41

Noureen Mushtaq - MM131044)Javeria Tariq - MM131074Kiran Shaukat - MM131042


3/41


4/41

founded in 1995

Online auction industry 1990s

First Mover in Industry

Transferring Information

Building elations

!enerating evenues

Continuously !ro"ing

A#out eBay


5/41


6/41

$ision%

To be the worlds personal Trading

Community

Mission%

eay allows customers to create

indi!idual auctions and online stores in

order to sell used and new products" This

process i# #acilitated by the ability to

create communities o# interest$ pro!iding

secure transaction ser!ices and a peer

re!iew process in a global en!ironment%

eBay at Focus&&


7/41

1' Analy(e t)e online auction industry* conduct a five force analysis' +)at is t)e arena

for com,etition- Is t)e arena c)anging-

.' +)at are t)e /ey success factors in t)at industry-

' +)at does t)e strategic ma, reveal a#out t)e ,ositions of maor ,layers in t)at

industry- 2se #rand a"areness and variety of auction categories as ,arameters'

3' +)at forces )ave t)e ,o"er to alter t)e nature and structure of t)e com,etition-

5' +)at is your assessment of eBay4s financial ,osition- +)y is eBay so ,rofita#le and

")at are t)e actions t)at management to gro" so fast-

' Com,are t)e strengt)s and "ea/nesses of eBay* ya)oo and Ama(on' +)at are t)e

t)reats of t)e dominating ,osition of eBay-

6' Based on a#ove analysis* ")at issues does eBay management need to address to

continue its ra,id gro"t) and ran/ t)em #y ,riority-

7' +)at actions "ould your recommend to miss' +)itman to maintain t)e gro"t) rate*

im,rove t)e com,any8s com,ati#le ,osition and long term financial ,erformance

uestions


8/41

Analy(e t)e online Auction Industry

:riving and Altering Forces of Com,etition;Industry

ositions of maor ,layers?

Financial >osition and easons of >rofita#ility

Strengt)s and +ea/nesses of eBay and its Com,etitors

T)reats for eBay

Issues* t)at need to #e addressed #y eBay

ecommendations for eBay

Focus of t)e >resentation


9/41

Analy(e t)e online Auction Industry

:riving and Altering Forces of Com,etition;Industry


10/41

Industry C)aracteristics%or companies competing in this industry'

Mar/et Si(e Mar/et !ro"t)

Ca,acity and @conomics of Scale

$ertical Integration >roduct Innovation

C!"#


11/41

:riving and Altering Forces of Industry

(ri!ing #orces with the biggest in#luence within an industry and their implications #or competing

companies'

@merging Internet Tec)nology a,,lications !lo#ali(ation

ongterm industry gro"t)

Mar/eting Innovation

:iffusion of tec)nology among com,etitive com,anies

egulatory Influences

C)anging Social concerns* attitudes and lifestyles


12/41

Com,etitive Forces


13/41

Industry ivals

)ow strong are the competiti!e pressure stemming #rom the e##orts o# ri!als

to gain market positions*

C)anged Online Auction Industry

Com,etitors Coming

Auctions $s etailing

B.B ; B.C ; >.>

e" @ntrants

T)us* com,etition is increased as more ,layers entered to

ta/e t)e o,,ortunities of t)e fast gro"ing mar/et


14/41

Su#stitute >roducts

)ow strong are competiti!e pressures coming #rom the attempts

o# companies outside the industry to win buyers o!er*

!ro"ing Trend of FiDed >rice Sales

>rice Com,arison Traditional auctions

Traditional etailing

@tailing

T)us t)e fast gro"ing nature of t)e mar/et leadto com,anies differing t)eir ,roducts slig)tly to

ta/e ,art in t)e mar/et


15/41

Su,,liers;Buyers

)ow strong are the competiti!e pressures stemming #rom supplier+buyer

bargaining power and seller,supplier collaboration-

Su,,liers

Buyers

Similar >ressures

@s,ecially in t)e case of online auctions su,,liers and #uyersand t)eir ,ressure on t)e com,anies are very similar


16/41


17/41

eBay

The #uture success o# eay is dependent on the companys -bility to

identi#y and optimally ad.ust to dri!ers o# success such as'

2se of large su#scri#er #ase to move from auctions to general=online? etailing

@D,ansion of categories $S full ca,a#ilities of current categories

*ther ,a$tors

International @D,ansion

>rioriti(ation of efforts

Satisfying small and large customers


18/41

T)reats for eBay

Issues* t)at need to #e addressed #y eBay

ecommendations for eBay


19/41

eBay

Position o# eay and o# its Competitors

The /trategic 0roup Map


20/41

>ositioning of eBay and its

Com,etitors

1nder consideration o# the identi#ied key success #actors eays Position in the

industry can be identi#ied as #ollows'

eBay

Offering $arious categories e#ay and Auctioning

e,utation Advantage

Co.(etitors Co,ying #usiness model

o" differentiation in ,roducts

o Brand name and e,utation


21/41

Strategic !rou, Ma,


22/41

Financial >ositioning


23/41


24/41


25/41

There are multiple #actors that are playing a supporti!e and

bene#icial role in #a!or o# eay$ which will be presented here

in #our aspects 2in conte3t o# Competiti!e approach4'

1' @nvironment and Sta#ility

.' Industry Strengt)

' Com,etitive Advantage

3' Financial Strengt)

easons of >rofita#ility


26/41

@nvironment and Sta#ility


27/41

Industry Strengt)


28/41

Com,etitive Advantage


29/41

Financial Strengt)


30/41

Stren&ths @D,ertise in tec)nology

Talented "or/force

>roduct innovation

Brand name

Accuracy of #illing

Advertising

/eaknesses After sale services

Customer Service

!uarantees and "arranties

Com,etitive Strengt) Assessment


31/41

Strengt)s of Maor >layers

eBay.com Amazon.com Yahoo auction

Technical proficiencyUsability

Quality products andservices brand Reputation27,000 differentcategoriesFirst Player

Worlds largestinternet marketplaceLocalizationpeer revieTalented work force!ommunity !reation

Technical proficiencyUsability

ShippingReputation"roduct Ran#e!atalo#ue siteSperior !alityser"ices and

prodcts$trate#ic ac%uisitionscross sellin##fficient distri$tionchain and logistics

Lo price items plenty of items

less competition


32/41

+ea/nesses of Maor >layers

eBay Ama(on Ea)oo

Tec)nologicalmalfunctions

Only online ,resence less ,otential #idders

Fraud issues egative ,u#licity ,lenty of items

Illegal activities on site ess category safety

ig) feeso furt)er gro"t)strategy


33/41

Strategic Ma, =eveling >ositions of maor ,layers?

Financial >osition and easons of >rofita#ility

Strengt)s and +ea/nesses of eBay and its Com,etitors


34/41

T)reats

Success attract com,etition

T)ieves

Online security

@Dc)ange rates


35/41


36/41

5hat to do now**

1'Industry C)aracteristics +ise

.'C)anging Forces +ise

'Strategic Statement +ise

ecommendations%


37/41

1Industry C)aracteristics


38/41

. C)anging Forces


39/41

Strategic Statement


40/41


41/41

or your time and attention

Thank ou

ebaycasestudy

Documents