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Submitted To: Alain Londes
HARDEEP SINGH NISHA SHARMA ARASHDEEP SINGH JASNEERAT SEKHON MANVESHBIR SINGH NIKHIL MALIK
2 3 4-5 6 6-7 7-9 10 10-11 11 12-13 14 14 15 16 .Page |1 TABLE OF CONTENTS Contents Company History & Background Value proposition Acquisitions Problems faced Strategies Applied (Solutions) X.commerce Business Model Solutions Adopted Other Solutions Competitors SWOT Analysis Lessons Learned Recommendations References Page No.
EBay is an online auction site that brings buyers and seller of goods and services. account balances and also enables users to create their own personal home page. It was the first internet auction business originally known as auction web. . In payment segment that includes verification of its PayPal account holders. EBay operates in three segments that is marketplace. In communication segment enables voice over internet protocol calls between Skype users.Page |2 COMPANY OVERVIEW EBay Inc. California.com. California. It provide services such as safety programs. is an American international internet consumer-consumer corporation. There are another two segments such as communication and payment segment. mobile. rent. withdrawing money. It was founded in 1995 by Pierre Omidyar and Incorporated in 1996 in San Jose.de. MISSION &VISION The company mission is to provide a global online trading platform “where practically anyone can trade practically anything”.com. headquartered in San Jose. payments and communications. The marketplace segment of the company provides an infrastructure that enables online commerce in a variety of formats and also its online platforms such as shopping. bidding. purchase protection programs and also My EBay account that allows online shoppers to receive a report of their eBay activity that includes selling.com and many others which EBay acquired in the period of 2002-2011. milo. customer support. as well as safety programs.
Buyers have to purchase online on an auction site that saves their time and effort in moving from one place to another. Seller: The values which the seller is getting by selling products on eBay are as follows: Broadens market: Seller has a broaden market that refers to the movement of their markets as a whole rather than a specific industry or sector. Saves time and money: As buyers gets an option of purchasing online that saves their time and money which means customers are not required to travel from home to the store to buy products as everything is available online. large portion. . variety of products. More convenient: It is more convenient for buyers because it is easy to order and purchase.Page |3 VALUE PROPOSITION Buyer: A buyer gets different values while buying products and services online on EBay such as follows: Massive Selection: Buyer gets options of large mass that is heavy and bulky. Maximize selling price: As sellers have low costs and expenses that helps them on maximizing their selling price for the goods and services being provided on EBay. Value added: EBay adds value to the buyers purchasing behavior as they gets a chance to buy online from home at reasonable prices. Lower Distribution Cost: Sellers enjoy lower distribution cost because of the online auction site EBay where there is no such movement of goods from point of production to point of consumption.
PayPal is the safer and easier way to get paid by online shoppers on eBay around the world.Page |4 Repeat business and clientele: It is easy for the sellers to retain their customers because users of EBay are usually repeated their buying from the same seller overtime. The deal between eBay and Shopping. eBay purchased for $620 million shopping. PayPal accounts for 40% of eBay‟s revenues. In 2002. EBay acquired various online shopping companies in the period of 2002-2009. In 2012. EXPANSION OF BUSINESS BY ACQUISITIONS EBay has been very successful in growing through acquisitions. eBay sold Rent.com which is an online comparison shopping website and in the same year eBay also acquired Rent.3 billion profits when Microsoft purchased Skype in May 2011. a leading rental housing sites.com was one of the ways that exposed the sellers of the company to the new buyers who look for product information and price comparisons. Then In 2009. EBay sold 70% of its interest in Skype and remaining 30% resulted into $2.com to PRIMEDIA which is the renter resource for the users who look or search for rental apartment or house information and their price listings. An online shopper at eBay gets a security in making payments through PayPal. it acquired PayPal whose payment services enabled the exchange of money between individuals over the internet and it became a wholly owned subsidiary of eBay. The company charges a commission on the products or items being sold on their website. EBay also purchased Skype technologies assuming that buyers and sellers will communicate about the transactions but it never occurred rather people used it for video chatting. In 2005. this was the major reason of being in top 15 shopping and classified websites.com. .
In 2008. After acquisition. In 2010. The tickets can also be sold to others by the buyers if they cannot go. a location based media and advertising company with a local discovery mobile application for $135 million. a provider of e-commerce and interactive marketing services. such as Gumtree (U. EBay coveted this RedLasers barcode-scanning application for eBay mobile. Later In 2011.com for $75 million. EBay started Bill Me Later which was an instant credit payments product offered to customers on checkout. Marketplaats (Netherlands). games. and Mobile. eBay also purchased Milo. . Later In 2006. There was another acquisition that proved to be profitable for EBay and it was GSI commerce. In 2010. Then it purchased WHERE. LoQuo (Spain). and shows. EBay also acquired a variety of interests in classified advertising websites around the world. EBay achieved GSI‟s more than 500 clients which resulted into acquiring new clients. Milo offers local product search and shopping engine.). a excellent barcode scanning mobile application for iPhone and other related technology from Occipital. G Market.K. Milo. the leading online ticket marketplace which provides a convenient space where customers can get tickets to watch their favourite concerts.com positions itself as an anchor for EBay Local. eBay acquired RedLase. The acquisition enabled eBay to grow itself in the online ticket selling segment and also to grow in offering the tickets to the users.Page |5 EBay purchased Stubhub.de (Germany). The reason for being profitable was GSI operates in e-commerce infrastructure for more than 500 clients worldwide. a Korean online auction and shopping mall site was acquired. eBay purchased Brands4friends. Germany‟s biggest online shopping club for fashion and lifestyle for $200 million.
They have an unlimited categories. a provider of mobile payments. It also purchased Zong. an open-source e-commerce platform for $180 million. PROBLEMS FACED During 2002-2009. EBay was getting complaints .Page |6 EBay also added few other companies such as Magento. EBay acquired all these companies which helped it to grow and improve its positioning in the top online shopping websites. • Shifting towards fixed price model: Here EBay started using the Amazon strategy as to shift his business model from auction to fixed priced model. and products that attract people to the online shopping websites like EBay. All these acquisitions made EBay a successful company and allowed it to provide variety of services to its online shoppers. The strategy of acquiring these resulted into successful customer achievement and profits. EBay had been facing problems such as: • • • • • Complaints from sellers Auction format Complex method Fixed Pricing Favoritism toward big retailers SOLUTIONS ADOPTED (3 year Revival plan) • Online outlet mall: EBay wanted to show that customer should recognize them as a retail store where they can buy all products and services. sub categories. EBay acquired companies around worldwide in order to expand its presence and get clients from around the world.
Magento. • Redesigned Home page: Other thing EBay did was redesigning there home page to make it easier for customer to search and look on. payments. order management CRM and ERP.Page |7 in order to overcome this problem EBay started fixed priced model that will help sellers and buyers in entering into transaction. eBay. It has several companies like Zong.Commerce is an eBay Inc. company which is also known by the name Fabric. • Improvement in search engine: Previously in EBay site search engine work like customer used to search the product comes first was that product whose auction period is soon going to end. X. PayPal. Red Laser and Hunch under its hood and it integrates the power of all these companies to bring about richer commerce related capabilities and solutions.COMMERCE X. It renders enhanced customer experience and provides richer experience in solutions like sales and marketing. Then they improved their search engine likethe product which has high rating come first on search. .
X. Extensions. .Commerce comprises of Apps.Page |8 Thus. like searching a band name or getting recommendations on Facebook. Integrations and Share fronts. consumers and businesses as well because of its dynamic range in the commerce related activities. The Application Programming Interface or the API‟s which the apps of Hunch employ makes the predictions easier. Magento: Magento is an Open Source ecommerce that provides complete E Commerce solution for business. It caters to developers. Hunch: Hunch is the website started in 2009 for „taste based applications‟ and is now a part of EBay. Services.
When a payment is to be made. it can even scan the UPC codes or EAN code and pictures and find local prices and price comparisons for the scanned products. ZONG: This Company was acquired by eBay in 2011 and deals with mobile payments for online transactions. The payment is charged by their „mobile operator‟ and is reflected in their phone bills. Zong then sends the secure pin code to their mobile phones and the customers enter that number to finalize the transaction. .Page |9 Red Laser: RedLaser is owned by eBay Inc. consumers press the Zong button on their mobile phones and are required to enter their phone number which they know by heart. and RedLaser app has much more functionality than Zong in the sense that besides mobile payments. It can also give details about allergens.
The acquisitions that ebay has done and is doing will help in being successful and will help them in getting global exposure and people can know the website globally because of the acquisitions of many known websites. buyer sends funds in the form of money order. When sellers receive the payment. ANALYSIS OF STRATEGIES APPLIED As they have already recognized the barriers so the new strategy may help them competing with the new competitors and existing businesses. then he sends the goods to the buyer. or makes payment through PayPal. • The bidder and seller whose ranking is high after contacting each other. • The buyer and seller fill the feedback forums in order to grade each other after the transaction gets over.P a g e | 10 PayPal: PayPal allows easy money transfers that take place through internet. PayPal is now an asset of Ebay Inc. cheque. The new strategy has already helped to bring down the auction format to 40% whereas the fixed price formats have . time and place. • The sale over the website or any transaction always closed on the predetermined time and date. He can also mention the description of the product so that online shoppers can get an idea about the item before final order. they arrange the shipment date. BUSINESS MODEL • The seller can easily upload the pictures of the products desired to be sold. • When the deal is done.
The acquisition of many known websites have helped them gaining more global exposure because people already know about those website and these acquisitions may help ebay in future to be the online leader. OTHER SOLUTIONS Innovation: They can try to innovate by re-designing there website just to drive more traffic. Ebay should try to add more clear pictures of the products so the customers don‟t feel cheated and they get what they see. Online Security: They can improve their online security. Guarantee:They can provide guarantee to their customers for their products. They can try to grow big in emerging markets. Most of the times when customers buy products they never get the same thing.P a g e | 11 been raised to 60%. Merchants are really getting into ebay as an example there was guy who started selling cellphone chargers just to make some extra money but now he has his own business and employees 180 people approaching 40$ million dollar. They can change the trading platform and make some changes in the feedback section. . They need to innovate with this changing marketing conditions and help there merchants reach consumers around the world. They can do encoding of passwords whenever the customers login. They are driving more consumer and merchant traffic because of the fixed price format and more online security. Now people are aware of the prices of whatever they are buying so they don‟t need to bid for most of the products. The new strategy may help them driving more merchant and customer interaction. The mobile sales have already been tripled.
Amazon has separate sites for different counties it is operating. When they started their initial business was to sell returned and surplus merchandise through online and in the recent years they have started selling new merchandise plus they have diversified their product portfolio. internet advertising. Initially it started as an online book store but later on it diversified into large variety of products to be sold through this online retailing business.P a g e | 12 COMPETITORS The top three competitors of EBay are as follows: Amazon Overstock Google Amazon is an American multinational electronic commerce company which started in the year 1995. Overstock is another online retailing American company founded in 1999. Google is the world famous search engine plus it also provides services like cloud computing. Its headquarters are in Seattle and it is one of the world‟s largest online retailers. Since its launch Google has diversified into many services as it is most frequently used website for any search queries or any product or any service Some of the points of difference between eBay and amazon are: EBay Enables big and small sellers to affiliates to earn at roughly the same Amazon Tends to prefer big-name brands and retailers with strong distribution chains .
EBay is used as platform for purchase and sell whereas Google is used mainly as search engine but it could be seen as a competitor because Google have been diversifying so much so management feel it could pose a threat in future. During the year 1999 eBay had some difficulties in their management and lost some business where yahoo and other competitors took full advantage and got recognized among consumers and stole some market share which eBay is suffering till now.P a g e | 13 rate Most of the business on eBay is done between consumer to consumer(C2C) EBay charges through a transaction fee structure Most of the business is done through businesses to consumer(B2C) Amazon charges through a percentage of sales. in japan and other Asian markets eBay is not well recognized and used by most of the population.g.S. eBay has supremacy if we compare with its competitors as it is most used website for online retailing purposes. If we talk about international markets (outside US) eBay lacked behind as yahoo moved first where it did effect the eBay business for e. Competition facts of eBay and competitors EBay had the first mover advantage as it was the first online retailing company established in United states so that‟s why its brand name got recognized and well known among consumers. . But still in U.
Amazon. and Google Enhanced number of illegal activities LESSONS LEARNED We have learned from this case that in order to become one of the top players in the e-commerce business.com. Another important point was how a company becomes successful by applying a strategy of acquisitions. The company can become global by acquiring different companies throughout the world and this can result into great success. . THREATS Growth of product development of competitors like Yahoo. The buyers get a different variety of services by acquiring different companies providing number of services. The interesting part was that buyers always want safety while making payments online and in order to provide trust and safety programs EBay acquired PayPal.P a g e | 14 SWOT ANALYSIS STRENTHNS Strong Brand loyalty and Good Brand Image Good quality products and safety programs Good Financial condition WEAKNESSES People can easily abuse EBay through illegal and fraudulent items OPPORTUNITIES Global Expansion specifically in China and India (power economies of the world) Due to Skype technologies can challenge phone companies New acquisitions for increasing products variety. We have analysed that EBay has been very successful in growing through acquisitions. there is a good alternative of acquisitions.
EBay is one of the top leading shopping and classifieds websites. it provides a two way communication among buyers and sellers that benefits the company in resolving the problems. EBay was facing problems with the sellers and they adopted three year revival plan in order to overcome those problems. EBay has a strong image among users because of its reasonable prices. . EBay has achieved success mostly through acquisitions around the world. EBay also involves customer participation through feedback forms where buyers and sellers grade each other on the basis of performance. is one of the biggest and most famous marketplace on the internet that allows its users and members to buy and sell almost everything. Hence. massive selection and convenient for buyers.P a g e | 15 CONCLUSION eBay Inc. EBay is an online auction platform where buyers and sellers conduct transaction.
cri.com/2005/06/02/technology/02iht-ebay.htm http://firstname.lastname@example.org/news/2012/03/27/primedia-buy-rentcom-ebay .P a g e | 16 REFERENCES http://english.inman.html?_r=0 http://www.
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