Presentation Transcript

1. By: Dan McLindon Kyle McDaniel Jeremy Smiley Tom Anderson Ray Moorman eBay
2. Key Question for eBay How can eBay continue to grow as an online retailer?
3. Secondary Questions What is eBay’s history? What is happening in eBay’s external environment? How is eBay performing today and what does the future look like? Who are eBay’s competitors and how is their performance in comparison? Does eBay still adhere to the strategies and values on which it was founded? Does the eBay brand create a sense of trust, security, and community? Should John Donahoe be the CEO of eBay? What is eBay’s current market position? How can eBay position itself for future success?
4. eBay Company Overview
5. eBay Key Acquisitions Conclusion: eBay’s strategy of growth by acquisition in core and adjacent markets has been hit or miss. Major success was PayPal, which was more of a horizontal integration than an adjacent market.
6. Secondary Questions What is eBay’s history? What is happening in eBay’s external environment? How is eBay performing today and what does the future look like? Who are eBay’s competitors and how is their performance in comparison? Does eBay still adhere to the strategies and values on which it was founded? Does the eBay brand create a sense of trust, security, and community? Should John Donahoe be the CEO of eBay? What is eBay’s current market position? How can eBay position itself for future success?
7. PEST Analysis for eBay
8. Industry Overview (Supply) Porter’s five forces: Threat of substitute products High Rivalry among existing competitors High Bargaining power of buyers High Bargaining power of suppliers Medium Threat of new entrants High
9. Porter’s Five Forces
10. Secondary Questions What is eBay’s history? What is happening in eBay’s external environment? How is eBay performing today and what does the future look like? Who are eBay’s competitors and how is their performance in comparison? Does eBay still adhere to the strategies and values on which it was founded? Does the eBay brand create a sense of trust, security, and community? Should John Donahoe be the CEO of eBay? What is eBay’s current market position? How can eBay position itself for future success?
11. Registered & Active eBay Users Reg users continues to grow but Active users has flattened out
12. Core Business: Online Auctions # of online Auctions declining during same time frame as users are increasing
13. eBay’s Business Model – 3 Operating Segments
14. Net Revenues By Segment
15. Forrester Research: 2012 Prediction of Internet Sales B2B predicted to be 10x larger than retail sales
16. Worldwide Internet Users in 2008 220m of NA was from US.
17. Secondary Questions What is eBay’s history? What is happening in eBay’s external environment? How is eBay performing today and what does the future look like? Who are eBay’s competitors and how is their performance in comparison? Does eBay still adhere to the strategies and values on which it was founded? Does the eBay brand create a sense of trust, security, and community? Should John Donahoe be the CEO of eBay? What is eBay’s current market position? How can eBay position itself for future success?
18. eBay’s Competition Initial Competition: Classifieds, Garage Sales, Flea Markets, Collectible Shows, Local Auctions Current Competition: Classifieds, Garage Sales, Flea Markets, Collectible Shows, Local Auctions Retailers with e-commerce presence Brick and mortar discount retailers Specialty retailers Competition increases via new entrants and eBay enhancing product mix. Direct Competition: Overstock.com, Amazon.com, uBid.com
19. Comparison with Competition All started in a unique niche, but have grown similar via product expansion.
20. Success Factors for E-commerce site Factors are the same regardless of online auction or retailer. Brand and product mix are the two key success factors.
21. Success Factors: eBay vs. Competition Large Product Mix Big Box Class. Ads Weak Brand Strong Brand Flea Mkt Specialty Small Product Mix
22. Should eBay Be Worried About The Competition?? From 2001-2007 eBay customer service rankings stagnant around a ranking of 81 Amazon ranking improves from 84 to 88 Seller ratings now on Amazon Amazon offering used merchandise Amazon net income experiences 250% increase from 2006 to 2007 Consistent investment new offerings and partnerships Free and low cost shipping deals 19 fulfillment centers worldwide Overstock.com Launches auction site to compete with eBay Launches automobile marketplace, then real estate .The competition is on the move!
23. Secondary Questions What is eBay’s history? What is happening in eBay’s external environment? How is eBay performing today and what does the future look like? Who are eBay’s competitors and how is their performance in comparison? Does eBay still adhere to the strategies and values on which it was founded? Does the eBay brand create a sense of trust, security, and community? Should John Donahoe be the CEO of eBay? What is eBay’s current market position? How can eBay position itself for future success?
24. Internal Analysis – Core Values Conclusion: eBay’s recent changes to their fee structure and feedback forum go against the company’s core values.
25. Secondary Questions What is eBay’s history? What is happening in eBay’s external environment? How is eBay performing today and what does the future look like? Who are eBay’s competitors and how is their performance in comparison? Does eBay still adhere to the strategies and values on which it was founded? Does the eBay brand create a sense of trust, security, and community? Should John Donahoe be the CEO of eBay? What is eBay’s current market position? How can eBay position itself for future success?
26. Secondary Questions What is eBay’s history? What is happening in eBay’s external environment? How is eBay performing today and what does the future look like? Who are eBay’s competitors and how is their performance in comparison? Does eBay still adhere to the strategies and values on which it was founded? Does the eBay brand create a sense of trust, security, and community? Should John Donahoe be the CEO of eBay? What is eBay’s current market position? How can eBay position itself for future success?
27. Management Timeline
28. Whitman vs. Donahoe Meg Whitman John Donahoe
29. Secondary Questions What is eBay’s history? What is happening in eBay’s external environment? How is eBay performing today and what does the future look like? Who are eBay’s competitors and how is their performance in comparison? Does eBay still adhere to the strategies and values on which it was founded? Does the eBay brand create a sense of trust, security, and community? Should John Donahoe be the CEO of eBay? What is eBay’s current market position? How can eBay position itself for future success?
30. SWOT Analysis for Dell
31. Secondary Questions What is eBay’s history? What is happening in eBay’s external environment? How is eBay performing today and what does the future look like? Who are eBay’s competitors and how is their performance in comparison? Does eBay still adhere to the strategies and values on which it was founded? Does the eBay brand create a sense of trust, security, and community? Should John Donahoe be the CEO of eBay? What does a SWOT analysis show regarding eBay’s position? How can eBay position itself for future success?
32. Recommendations 1. Fire John Donahoe, leverage strong board of directors to find a replacement that can lead eBay into the future. 2. Focus on restoring the eBay brand name. Make eBay.com a 100% auction site. Use Shopping.com and other possible acquisition targets to compete in traditional online retail space. 3. Revamp fee structure to be friendly to both small and large sellers. Tier the structure based on monthly or annual trade volumes.
33. Recommendations 4. Look into acquiring either or both Overstock.com and uBid.com Introduce “Merchant Rewards” program Allow merchants to earn rewards points per transaction. Rewards can include shipping credits/codes, free boxes, packing supplies.