CAN EBAY CONTINUE GROWING?

CASE STUDY

Introduction

o E-bay was founded on September 3rd 1995, by Pierre Omidyar.

o It’s headquarters is in San Jose, California, U.S.

o It’s CEO is John Donahoe and CHAIRMAN is Pierre Omidyar.

o E bay had a revenue of 9.156 billion dollars in 2010.

o 17700 employees are working in Ebay.

E-bay.com is an online auction service whose business model is ideally suited to the Web.

E-bay stores no inventory and ships no products. Instead, it derives its revenue from the movement of information, an ideal task for the Internet.

Since eBay was founded in 1995 by Pierre Omidyar the company has been profitable, attracting more than 200 million users by 2006.

The success of eBay relies on a unique formula. E-Bay derives the bulk of its revenue from fees and commissions associated with its trading services.

E bay headquarters in SanJose.

Consumer oriented trading....

"Connecting buyers and sellers globally.“

"What ever it is, you can get it on eBay.“

"Buy it, sell it, love it"

Interesting in eBAY

Fully automated auction function

First product sold on eBay was a broken laser pointerRegistration is required to buy and sell on eBay

Products in which E-bay deals

EBAY MAIN DEALS

CLOTHING

FINE ARTS

AUTOMOBILES

JEWELLARY

CONSUMER ELECTRONICS

HOUSEWARES

Restricted items of eBay…

Drugs

Alcohol

Tobacco

How eBay works??A seller list

item to

sell on ebay

Buyer opens ebay page

Order

E-payment

delivery

Questions of case???

1)What is eBay’s business model and business strategy? How successful has it been? E-bay is an online market place and an online

auction service. It stores no inventory and ships no products.

Instead it derives its revenue from the movement of information.

E-bay’s business strategy is to generate revenue from the fees and commission charged to the customers, who use the site to exchange products.

According to this case the company has been profitable and had attracted more then 200 million user by 2006, till 2005 ebay users listed 1.8 billion items in auctions.

One of the most successful part of the company is that it’s fully automated.

2)What are the problems that eBay is currently facing?

One problem is that analysts report that many of eBay’s top sellers aren’t interested in adding voice calls to their sales models.

Another problem is that since Ebay is growing internationally, it may not be able to keep up with all the different laws found in each country.

One of the problem is auction’s honesty and integrity, company have some control over this issue but not complete control.

Customer service is another problem, and it is due to size of the company.

3) How is eBay trying to solve these problems? Are there any other solution that eBay should

consider?

One solution includes great expansion. Ebay has added extra measures of protection such

as additional vehicle warranties and purchase protection.

Ebay has also entered into a number of relationships with major competitors such as Yahoo and Google.

Ebay purchased PayPal which is essentially a peer-to-peer payment system.

To remain in touch with its customers, Ebay has started a program called Voices.

It has also tried to create a dialogue between customers by creating a WIKI.

4)What management, organization, and technological factors play a role in eBay’s response to its problems?

• Management have to ask the buyer and seller are the new services offered by the company are satisfactory or not.

• Organization factors include having enough employees to carry out the changes to the company.

• Technological factors include the components and programmes that will be run by eBay such as PayPal AND Skype.

5) Will eBay be successful in long run? Why or why not? Yes, eBay will be successful, but need a lot of

work to do. Case says that eBay is declining in sales(in last) So, they have to design new ways to attract

new buyers. Ebay is trying to implement more interactivity

through skype, so that customer sellers can communicate two way.

Also ebay is pricey transparent, use of wiki is also adding on, but have to have control upon frauds.

Thank you…..