BS-COMMERCE

SUBMITTED TO: prof: Dr. Ammar illyas

SUBMITTED BY: Amna Akram

G1F17BSCM0014

DATE: 23 Jan, 2021

Introduction
EBay, global online auction and trading company launched by American entrepreneur Pierre
Omidyar in 1995. EBay was one of the first companies to create and market an Internet Web site
to match buyers and sellers of goods and services.  The company, which caters to individual
sellers and small businesses, is a market leader in e-commerce worldwide. EBay is
headquartered in San Jose, California.

History
A key factor in eBay’s growth was its implementation of procedures to promote safe, transparent
trading, accessible nearly anywhere to anyone. PayPal, the online automated clearinghouse for
payments, has been a cornerstone of eBay’s transaction environment. In October 2002 eBay
bought PayPal, but it was spun off as an independent company in 2015. Other major acquisitions
in the 2000s included Skype (sold 2009), Shopping.com, Rent.com (sold 2012), and StubHub.
EBay relies on its users to self-regulate the trading community through a feedback system that
allows buyers to rate sellers on transactions. (Formerly, sellers also could leave negative
feedback on their buyers, but this feature was removed in 2008.) In theory, unscrupulous vendors
are exposed and lose the trust enjoyed by reputable sellers. In practice, some vendors received
poor ratings through no fault of their own but because of, for example, problems with package
deliveries, and other vendors garnered good ratings for a short period before setting
up cybercrime scams to defraud customers. In response, the company made available educational
resources for best-practice trading. Furthermore, eBay lists categories of potentially prohibited
items; the company sanctions would-be traffickers in goods that may be illegal or offensive.
Nevertheless, eBay came under increasing legal pressure in Europe, where several manufacturers
sued the company, charging that it was complicit in the distribution of counterfeit goods because
it took a commission on the sales that it facilitated without imposing adequate controls on the
transactions. In particular, some luxury fashion houses in France sued eBay for damages, with
the first judgment of €20,000 against the company in June 2008.
Mission:
At eBay, our mission is to provide a global online marketplace where practically anyone can
trade practically anything, enabling economic opportunity around the world. Vision:
 Our vision for commerce is one that is enabled by people, powered by technology, and
open to everyone.
Core values:
EBay’s core values comprise of “family, teamwork, and opportunity.” A company's core values
are the support of its vision and key components in achieving them.

External Factors Weighted Rating Weighted to score

Opportunities:
1: Changing lifestyle of peoples 0.2 3 0.6
2: Acquisition of Yahoo.com 0.04 3 0.12
3: Continued international expansion 0.1 3 0.3
4: Increasing use of the internet 0.08 3 0.24
5: Expand community services 0.1 3 0.3
6: Foreign market especially in Asia are 0.2 2 0.6
improving
7: Market development new emerging
0.1 3 0.3
market china and India
8: Market penetration improve market
services and current market 0.08 3 0.24
Threats:
1: Success attracts greater competition 0.2 3 0.6
2: Attack by illegal practices might 0.04 3 0.12
happened
3: Some cost like credit card charge cannot
0.1 3 0.3
be easily controlled by eBay
0.2 3 0.12
4: Transportation system could be poor
0.08 3 0.24
5: Future Taxation
6: Fluctuation in currency and exchange
rates 0.1 2 0.2
7: Rapid growth of Amazon.com 0.2 3 0.12
8: Increasing number of online stores 0.08 3 0.24

1.0 2.90
IFE Matrix EBay
Internal Factors Weighted Rating Weighted Score
Strengths:
1: Well Known auction company 0.1 4 0.4
2: Loyal customer 0.04 3 0.12
3: financial situation 0.1 3 0.3
4: fair payment system 0.3 3 0.09
5: global market 0.05 3 0.15
6: management system 0.1 4 0.4
7: zero inventory 0.05 3 0.15
8: customer services 0.03 4 0.12
9: eBay university 0.02 3 0.6
10: international market 0.08 4 0.32
Weakness:
1: weak promotional and marketing activity 0.04 1 0.4
2: Website is cluttered 0.08 2 0.32
3: eBay have higher tax rate 0.02 1 0.2
4: the company too much on word of mouth 0.05 1 0.5
5: longer transaction time 0.07 1 0.7
6: open to fraudulent activities 0.02 2 0.2
7: system breakdown could affects trading 0.02 1 0.2
activities
8: weak in B2B
0.02 1 0.2
1. 3.32

CPM Weighted Rating Weighted

score
Key Success Factor:
1: Product Quality 0.10 4 0.40
2: Price 0.12 4 0.48
3: Market share 0.10 1 0.40
4: Advertising 0.12 3 0.48
5: Customer Loyalty 0.08 2 0.24
6: Brand Equity 0.08 4 0.32
7: Financial positions 0.12 3 0.40
8: Global Presence 0.12 4 0.48
9: Customer Services 0.08 3 0.24
10: Distribution Network 0.10 3 0.40

1.00 3.14