Ebay Versus Google & Microsoft: Competitive Battle for E-Commerce supremacy

Prashanth.C

Sasikumar. S

Hallin Shano

Vaidehi. R

Anne Helena. D

Virtual Monopoly. Command more than 90% of online auction market. 1999-2004, reported 40% annual profit growth. 2006, Toughest challenge faced by Ebay. Google and Microsoft. Not aimed at Ebay’s online auctioning but Build

dominance in online classifieds. Strengths: search and advertising and availability of

Resources. Movement of Louis Monier Former Director of advanced

technology and wizard of Ebay’s search innovations to Google.

Online classified Business – faster growth rate.

25% stake owned by Ebay. Online classifieds. Meeting web space - looking for friends, jobs, apartments

and share ideas. Classic example – internet connecting people. Doesn’t have an online payment system. Non existent Industrial strength shopping search engine. No expansion plans on global scale. Hence not a major global player in E-Commerce.

Feb 2006, Windows live Expo launched. Posting classified for free. Limit access by buddy lists. Focus listing geographically. Geo-Tagged products and service listings.(25 miles radius) Knowledge on where product is located. Helped buyers and sellers find each other easily. Tie- in to MSN’s Virtual earth mapping service. Own search parameters for goods & services. View maps – aerial imagery of neighborhoods.

Went live in Nov 2005. A massive searchable database of products. Posting of recipes, concert dates, used cars, job listings,

local merchants info on inventory. Classified data – available products in stores. Free posting of ads for products and services. Users can submit all types of online & offline content. Description of item through attributes. Froogle, Google maps and Google search engine – results.

No blindness for this shift in E-Commerce. Recent acquisitions and launches. Comparison site – Shopping.com and International Online

classifieds – kijiji, Gumtree and LoQUo. Sep 2005 – acquired Skype Technologies – Global internet

communications company. Skype, Ebay and Paypal - unparalleled E-Commerce and

communications Engine. Communications – a critical path like payments and

shipping. Improved communication between sellers and buyers. Easy way to get info, negotiate, build relationships and

close sales. Increases velocity of sales on Ebay – used car, business

and industrial equipments and high end collectibles.

In 2006, Ebay struck with alliance sorts with Yahoo. Sale of Ads for Ebay’s sites. Promotion of PayPal payment service of Ebay. Yahoo users – pay for Yahoo services. Surprise deal – Google – promoting Skype calls on its

website. Google was allowed to place Ads on Ebay’s websites –

markets outside US.

Turning Point in Battle

Question 1

Do you Agree with Google and Microsoft that Ebay is vulnerable to their assaults Via Google Base and Windows Live Expo?

Highlighting the Move by Google and Microsoft: Focus listing geographically. Geo-Tagged products and service listings. Own search parameters for goods & services. Free posting of ads for products and services. Description of item through attributes. A small improvement in user experience on viewing

product and service listing

The Answer is NO!

Skype, Ebay and Paypal - unparalleled E-Commerce and communications Engine.

Easy and safe search - Adding photos for better description

Feedbacks from buyers to sellers and vice versa Excellent Customer service. Easy to set up a auction A choice of secure online payment system – Paypal Communications – a critical path like payments and

shipping.

Comparison with Ebay’s move

Question 2

What are the major advantages and limitations of Google base and Windows Live Expo? Which do you prefer or would you use both? Why?

Advantages Of Google Base & Windows Live Expo

GOOGLE BASE WINDOW LIVE EXPO

A massive, searchable database. Integration with familiar Microsoft products – Windows Live local supported by MSN’s satellite imagery & mapping

Allow upload different types ofinformation in order to facilitate searching – recipes, concert dates, classifieds etc.

Focus listing geographically and geo tagging products & services.

User-defined attributes enrich the product and service search.

Integrated attribute based search and advanced mapping.

Search for FREE. Free and easy posting of ads.

Ebay has a dominant market share in E-Commerce. The E-Commerce not only depends on massive database,

search engine or geo tagging. Depends on number of factor to function well

communications, secure payments and shipping. Ebay - buyers and sellers rate each other and Based on

this ratings business is done. It's easy to decide if people want to risk purchasing something from a seller, based on their ratings.

Shipment tracking is not possible in case of Google Base and Windows Live Expo.

Return and Refund of money is not possible in Google base and Windows Live Expo.

Limitations Of Google Base & Windows Live Expo

We would like to try both Google Base and Windows Live Expo.

But personally we would still stick on to Ebay because of the following reasons:

- Secure Payment options.

- Variety of payment options.

- Online tracking of shipped goods.

- Provision for refund of cash in case of dissatisfaction.

- Better user interface and navigations.

Preference

Question 3

Are Ebay’s development of Kijiji, acquisition of Skype, alliance with Yahoo and other acquisitions enough to ward off competitive assaults of Google & Microsoft?

Ebay’s alliance with kijiji:

Objective: To explore eBay’s business in online listing;

Reasons: Kijiji is still a medium-small company for online listing

business. Ebay can Use Kijiji for online listing of its products and

services. Scope of expansion of foot print into Asian, European, UK,

Australian, Canadian, New zealand and South African online markets and classifieds.

Yes

Ebay’s Acquisition of Skype

Objective: To implement the internet telephony in order to better the voice communication and accelerate E-Commerce.

Reasons: Viewed communications as a critical path like payments

and shipping. Improved communication between sellers and buyers. Easy way to get info, negotiate, build relationships and

close sales. Increases velocity of sales on Ebay – used car, business

and industrial equipments and high end collectibles. Ebay can fight back Google Base and Microsoft Live Expo,

as they are lack of the IM system or well supported communication network.

Ebay Alliance with Yahoo

Objective: To post ads in Yahoo webpage and promote the Paypal payment for Yahoo services.

Analysis: To sell ads in Yahoo page can enhance brand awareness

and increase popularity. Huge revenue generated when Yahoo uses Ebay’s PayPal

payment service. Microsoft Live Expo is still lack of payment service. Google is developing, but still takes a long time to mature

it, keeping away from fraud.