inc.

STRATEGIC MANAGEMENT
FINAL PROJECT

Firm Profile

Founded by Pierre Omidyar in 1995

Current CEO: John Donahoe

International online marketplace

Over 15000 employees in over 39 countries

Millions of items listed on eBay across thousands

of categories.

IPO in 1998

Traded as NASDAQ:EBAY

Market Capitalization: $68.18 Billion

Product and service

Key products and services:

Online services for the sale of goods and services

Online communication services

Online payment and transactional credit services

Online classifieds

Advertising

Global commerce platform and payment leader.

The world's largest online marketplaces

PayPal - flexible and innovative payment solutions

eBay Enterprise - exceptional, engaging shopping

experiences online and offline.

External Analysis
Competitors

Amazon

Alibaba

Market Cap: 267.89B

Overstock

Market Cap: 147.18B

Market Cap: 600.39M

Rakuten

Market Cap: 17.47B

External Analysis
Porters 5 Forces Model

Industry Trend:
-

Mobile more sales

Free and faster shipping
Business without borders
Content marketing is
essential
Growth of guided discovery
Consumer driven demand
and personalization
Brand

External Analysis

Privacy
Different
markets have
different
cultures and
competitions.

Technology

Exchange rate
Global
recession
Slower growth
in mature
market

Social

Marketplace
Fairness Act
Copyright
policy

Economic

Political

PEST

Mobile
Payment
Cloud
computing

Mission Statement

eBay Inc. enable commerce by

delivering flexible and scalable
solutions that foster merchant growth

Organizational Structure

Two core businesses

- eBay Global Marketplace, led by Devin Wenig
- Payment, led by Dan Schulman
CEO John Donahoe
- Oversees strategic and financial planning, marketing, operations, product
development, and business development for eBay North America and
eBay International businesses.
- Receives reports from various departments, including legal, marketplaces,
communication, Shopping.com, international and human resource.

Resources

Innovative business model

Large range of item

Technology platform (website, paygate, mobile)

Globalization scale

Marketing

Partnership

Customer service

Brand

eBay community

Office, facilities

Internal Analysis
VRIO Framework

Competitive
Advantage

Innovative
business model

yes

no

yes

yes

Temporary

Globalization

yes

no

yes

yes

Temporary

Resources

Internal Analysis
Value Chain Model

Business level
strategies
Differentiatio
n
Quality control by offering
peer review
Auction; and
Alliances with numerous
overseas companies

Cost
Leadership
Cost saving way to
start a business on
eBay, offering all types
of items and broad
providers

Growth
Strategy
Acquisitions and
joint ventures with
global companies

Corporate Level Strategies

Strategic
Alliances

International
Strategy

UPS: improve delivery

quality
Microsoft: expand
online presence

Registered members: >

150 countries
Rely on local sites

Integration Strategy

Vertical
Integration:
-

Paypal
Shopping.com
Where, Inc

Horizontal
Integration:
-

Craigslist
StubHub
Bill Me Later

Diversificatio
n:
-

Skype
Meetup

Financial performance in
the last 5 years

Financial Analysis
Revenue per Year
eBay

Amazon

Alibaba

Gross Profi t Margin

Opportunities & Challenges

Opportunities & Challenges

Economic Scale
Diversity in Products
Strength in Technology
Brand Reputation
Users Data Base

Opportunities & Challenges

Inability to measure illegal
activity on site
Strengths

Weaknesse
s

Technology malfunctions
Cost of shipping
High fee
No further growth strategy

Opportuniti
es

Inability to penetrate some

Threats

foreign markets
Lack of in-depth
descriptions for products

Opportunities & Challenges

Mobile usage
Strengths

Weaknesse
s

International expansion
New markets
Market penetration
Increase services

Opportuniti
es

Threats

portfolio through
acquisition

Opportunities & Challenges

Strengths

Weaknesse
s

Opportuniti
es

Threats

Online security
Increasing competition
from Amazon & Alibaba
Exchange rates
Regional low cost
retailers

Action Plan
Tackle weakness:
- Make it more difficult for scammers
to take peoples money
- Keep malfunctions as low as possible
- Control the price of shipping
- Revise and adjust the fee system

Capital Opportunities:
- Enable the process payment system
- Further its international expansion
efforts
- Consider the retail markets

Q&A