...eBay Goes on a Shopping Spree Introduction The author provides a case analysis of the eBay shopping spree assigned reading in the E-commerce: Business, Technology and Society textbook. The purpose of the research is to explain whether or not making so many acquisitions is a risky proposition. Additionally, the author will argue why eBay can successfully compete with its top three competitors. Finally, the researcher will explain why eBay is the perfect model for the integration of all the aspects of e-commerce. Questions Question #1: Explain whether or not you think making so many acquisitions is a risky proposition and why? The acquisitions are risky but support the eBay overall open source commerce platform called X.commerce. Therefore, the acquisitions are warranted as a calculated risk which enables merchants to more easily integrate online and offline commerce efforts (Laudon & Traver, 2012). Specifically, the acquisitions of RedLaser and Milo allow eBay to build services to help sellers offer goods locally, both online or through a mobile device, providing them with another channel for product distribution (eBay Annual Report, 2012). RedLaser allows consumers to scan barcodes in order to find the goods they are looking for in a variety of locations, both online and offline, while Milo enables local inventory to be viewed online or on a mobile device. The eBay acquisition strategy shows a strong commitment of connecting local retailers with shoppers. The...
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...Prepared by : ID : Company Background Name | eBay Inc. | Logo | | Industries served | Internet, Online retailing | Geographic areas served | Worldwide | Headquarters | U.S. | Current CEO | John Donahoe | Revenue | $ 14.07 billion (2012) | Profit | $ 2.60 billion (2012) | Employees | 27,770 (2012) | Main Competitors | Amazon.com, Craigslist, Ubid, eBid Auctions, Google, Overstock.com and many others. | eBay is an international online marketplace with a global customer base of 233 million. It is a multibillion business operating in 37 countries. There are millions of items listed on eBay across thousands of categories, including antiques, toys, books, computers, sports and electronics, amongst many others. Strengths 1. World’s largest internet marketplace. eBay has more than 150 million live listings and more than 105 million active users globally in 37 countries. That makes eBay the largest marketplace online, having a great power over other online retailers. 2. Business model. eBay only acts as a middleman between sellers and buyers, who bid and sell items in eBay’s marketplace. Being a pioneer in online auctions, eBay had no competition and currently has only few strong direct competitors. Thus, company’s business model is a competitive advantage over such giant retailers as Amazon. 3. Economies of scale. In the beginning, eBay had to invest heavily to gain IT and customer relationship management (CRM) knowledge and skills, but...
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...Leadership- eBay operates the leading online auction community on the Internet. Market leadership will benefit eBay in a number of ways. Firstly it will enable eBay to maintain a high level of brand awareness for the company and its offerings. Market leadership will also enable eBay to exert a greater influence on the marketplace. For example, the company would be in a better position to combat any new entrants into the market. Intellectual Property- eBay’a intellectual property such as its trademarks, copyrights, patents and domain names will help to give the company a competitive advantage over its rivals in the market place. This in turn will help eBay to generate increased sales, profits and market share. Brand- The strength of the eBay brand name is increasing. The brand is now becoming more mainstream, as it benefits from an increase in both brand awareness and brand recognition. The eBay brand name is also becoming better known internationally as the company expands its international presence to cover more markets. The increased equity of the eBay brand name will help the company to generate increased sales and profits. Double-Digit Growth- A double-digit growth in sales has been seen in a number of the company’s eight core product categories. In the past year, eBay Motors saw its revenues increase by 88% year-on year, while eBay Media and eBay Collectibles posted a 52% and a 23% yearon- year increase in revenues respectively. PayPal- The acquisition...
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...group assignmen Group 8 eBay- Fine- Tune its Strategy E-commerce assignment group: eBay ABSTRACT 1 EBay is one of the world leading companies, specializing in online retailing market, which has been really famous for its amazing business model and selling strategies at the point of several decades ago. It was once to be deemed as the monopolist in the online auction market business with so many successes. However, as the competition is becoming more and more intense, along with many new effective business strategies coming to the online retailing sector, the companies had committed in some mistakes as well as faced with a number of difficulties. It should and must change in order to keep up with the market speech. This paper is not only to give an overview of eBay’s company but to analyze deeply its current situations, of which providing the 8C’s, 5 forces and other relevant model analysis. In addition, the key reasons for eBay’s changes as well as key factors for its success had been identified. The recommendations for Vietnamese enterprises were also included. High Quality Class No. 2 Business Administration – Group 8 E-commerce assignment group: eBay TABLE OF CONTENT ABSTRACT ------------------------------------------------------------------------------------------------------------ 1 TABLE OF CONTENT ---------------------------------------------------------------------------------------------- 1 I. OVERVIEW OF EBAY-----------------------------...
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...eBay Inc. Corporate Culture EBay Inc. is a multinational Internet consumer-to-consumer corporation, founded by Pierre Omidyar in the midst nineties during the dot-com bubble. The company runs and manages eBay.com as well as several other acquisitions including Stubhub, Craigslist, and PayPal. EBay is more than just an online auction website, it is an online community marketplace. This, and the many diversified acquisitions, are the reason Ebay has such an interesting and complex company culture and organizational structure. EBay is a leader in the tech, e-commerce, and payment industries, causing it to require a unique organizational structure which optimizes all its employees ideas and talents. Corporate culture is the moral, social, and behavioral norms of an organization based on the beliefs, attitudes, and priorities of its internal community. In a big organization such as eBay, there are many sub-cultures running from division to division, even office to office. However, across all these sub-cultures, eBay strives to be a diverse and socially responsible company, encouraging creativity and group efforts. EBay focusses on the belief that the ability to empower their business starts with individual ideas, and that these ideas are meant to be shared, creating collaboration, communication, and new ideas. EBay is all about “cultivating ideas that will create new opportunities for customers.” Although this culture is spread throughout all of eBay’s workforce, many employees...
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...2013 and future growth in the Payments, Marketplaces and Enterprise businesses. • Our actual results may differ materially from those included in this presentation for a variety of reasons, including, but not limited to: changes in political, business, and economic conditions, including any continuing U.S. government shutdown or default; foreign exchange rate fluctuations; our need to successfully react to the increasing importance of mobile payments and mobile commerce and the social aspect of commerce; an increasingly competitive environment for our businesses; the complexity of managing an increasingly large enterprise with a broad range of businesses; our need to manage regulatory, tax and litigation risks (including risks specific to PayPal and Bill Me Later); our need to timely upgrade and develop our technology systems, infrastructure, and customer service capabilities at reasonable cost while maintaining site stability and performance and adding new products and features; and our ability to integrate, manage and grow businesses recently acquired or that may be acquired in the future. • You can find more information about factors that could affect our operating results in our...
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...eBay Problem Statement Webster University eBay Problem Statement eBay’s organizational structure of functional design needs changes to maintain a competitive advantage and to react quickly and efficiently to the external environment. Analysis and Evaluation eBay has had tremendous growth from late 1998 to 2007, with acquiring PayPal, Skype, Butterfield & Butterfield, and Half.com. eBay started with revenue sliding in the fourth quarter of 2007 (down 6.6%). Then like so many other companies the recession of 2008 hit the market and eBay’s revenue hard. eBay will need to remodel the organizational structure of their business divisions to achieve growth and profit, with unstable markets. The functional organization structure that has been in place for eBay has been a great building block for the organization. The functional structure does allow an organization to achieve economies of scale and operate more efficiently because employees become authorities within their area of the organization. The downside of the functional organization is that it is best for simple/stable environments. The functional structure may allow individuals/management to care more about their individual function, rather than the company as a whole. eBay has now outgrown the functional structure of their organization with the slow response to customer demands of the online market, and the nonintegrating of the functional units of finance, human resources, and legal, in regards to the various...
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...Amazon vs. eBay Choice of Investment James Reitnour Strayer University ACC 557 Professor Frank Gorbey September 2, 2013 Amazon vs. eBay Choice of Investment Deciding between two stocks to invest in can be like attempting to predict what number will come up next on a roulette wheel; it is a gamble to say the least. However, by following the first major rule about investing in a company, namely doing your homework, it is possible to make an informed choice between two companies. The choice is down to two internet based behemoths, Amazon and EBay. A Comparison of the Companies The first company, Amazon, was founded in 1994 by a former Wall Street vice-president looking to capitalize on a report that at the time projected the growth of the web twenty-three fold annually (Funding Universe, 2013). After narrowing down a list of 20 products that could easily be sold online to the most promising five, the product to be sold first was books due to the sheer number in print and the proximity of a major distribution hub nearby. Within four months of the website launch in July 1995, Amazon had become a very popular site. The key to their success was the fact they only stocked a small number of items in their warehouses, while using outside sources to provide the remaining products. This model is still in use to this day. Amazon went public in May of 1997 with an offering of 3,000,000 shares. The money was used to expand the distribution network to a facility in Delaware;...
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...which strengths and weaknesses are relevant to, and are capable of dealing with changes that take place in the business environment. Internal Resources and Capabilities Financial Resources Ebay is a Public Listed Company with corporate responsibilities to its shareholders. In 2006, it earned a gross profit of $4.7 billion and its total assets were $13.5 billion. This financial strength gives it opportunities to invest in activities to increase its financial strength through growth into related and other industries, global markets and also to investing in technology to increase customer satisfaction. It also allows it to invest in marketing to attract further customers and to invest in fraud prevention to protect its valuable intangible asset, its brand name. The Value Chain If organizations are to achieve competitive advantage by delivering value to customers, managers need to understand which activities their organization undertakes are especially important to creating value and which are not. Primary Activities The in bound logistics (Sales and Marketing) for Ebay is effectively the sales and marketing process attract customers to the ebay site so that there are products to sell and customers to buy their products. Attraction comes from the household brand name of Ebay and word of mouth...
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...Comprehensive Cases CASE 5 EBAY IN JAPAN: STRATEGIC AND CULTURAL MISSTEPS "1 am not one for regrets, but 1 still regret we don't have a presence in Japan."] -MEG WHITMAN, CEO, eBay in 2008. "When we arrived last year, the 800-pound gorilla {Yahoo Japan Auctions] was already positioned. ,,2 -MERLE OKAWARA, President and CEO, eBay Japan in 2001 "1 think eBay learned what it did wrong in Japan. Because ofthe nature ofthe auction model, 1 think it now understands that you have to be the leader in the market. 1 think it's a smart move for the company to have closed its site in Japan and to wait for another time when it can go in and do what it takes to be the leader there.',3 -LINDSAY HOOVER, Vice President, Houlihan Lokey Howard & Zukin 4 in 2002 Ebay Reenters Japan In December 2007, eBay Inc., the U.S.-based online auction company, announced its reentry into Japan, through an agree ment with U.S.-based Internet services company, Yahoo! Inc. 5 eBay and Yahoo agreed to link their auction sites to facilitate cross-border bidding. This would enable the users of Yahoo .Auctions Japan to bid for items listed on eBay's U.S. site using their Yahoo Japan 10, and eBay users in the U.S. to buy items auctioned on Yahoo Japan using their eBay 10. On Yahoo and eBay teaming up, Meg Whitman,6 President and CEO, eBay, said, "We are excited to partner with Yahoo Japan in providing Japanese users with localized site designed to enable them to shop on the eBay marketplace with ease...
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...World largest internet market place Brand Reputation Explanation Ebay has more than 150 million live listing and more than 116 million active users globally in 39 countries It is a trusted brand and well known globally. Its market value is estimated at at USD47 billion (as of March 2012). Pay Pal is the first mover in online payment Using PayPal as payment platform. The integration has benefits of more fees collected (Paypal takes transcation fees from the business) and tighter control over buyers' shopping experience. For buyers, they found that Paypal is user friendly. Pay pal does not require upgrade infrastructure Ebay marketplaces adoptation to local needs. Each marketplace is using local language and adapting to local product offering Q4 2012, Ebay has revamp its website to be more user friendly. The roll out started in US. Ebay streamline and globalized traditional person to person trading. Strong relationship in consumer to consumer business mode, eg: seller and buyer are allows to leave feedback for each other and there is an award given to most genuine eBayer. No discrimination in hiring and the company carries their social responsibility Good human resource and employee benefts Ebay payment system Localization User friendly website Strong in C2C Organisation is diverse and socially responsible Hire and develop employees and offers great benefits to retain them WEAKNESSES High fee charges by PayPal B2B business is not well managed and handled The image as "retailer...
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...EBAY INC FORMReport) 10-K (Annual Filed 01/31/14 for the Period Ending 12/31/13 Address Telephone CIK Symbol SIC Code Industry Sector Fiscal Year 2065 HAMILTON AVENUE SAN JOSE, CA 95125 408-376-7400 0001065088 EBAY 7389 - Business Services, Not Elsewhere Classified Retail (Catalog & Mail Order) Services 12/31 http://www.edgar-online.com © Copyright 2014, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K [x] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2013 . OR [] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to . Commission file number 000-24821 eBay Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 77-0430924 (I.R.S. Employer Identification Number) 2065 Hamilton Avenue San Jose, California (Address of principal executive offices) 95125 (Zip Code) Registrant's telephone number, including area code: (408) 376-7400 Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934: Title of each class Name of exchange on which registered Common stock The Nasdaq Global Select Market Securities registered pursuant...
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...Case study of eBay As an efficient and flexible sales channel, online auction businesses are becoming an internationally successful phenomenon. People can use auction sites as a market to conduct sales, to liquidate unwanted inventory, as well as to reaching markets that would otherwise be too expensive to reach. However, there are potential problems with feedback systems in the OAM, in other word, seller incentives to provide high quality products under the case of asymmetric information, for example buyers are not able to discern product quality prior to making their purchase decisions while sellers are aware of the quality of their product offerings, as a result dishonest or low-quality sellers will drive honest and high-quality sellers out of market. Obviously, beside the transaction cost of determining the required good is available on the market, which has the lowest price, there are other transaction costs within the online auction business for both sellers and buyers. From seller’s perspective, their decision on the which auction service to use are depended on following factors: cost of listing an auction item and the chance that a product will be sold. In the case of eBay and Yahoo!Auction, eBay charges sellers both listing fee and a percentage commission of the item sold. Yahoo!Auction, on the other hand, offers free listing. However, Yahoo!Auction suffers from a much lower successful transaction probability than eBay. Thus, a seller should trade off between balance...
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...eBAY INC. ANNOUNCES FIRST QUARTER 2007 FINANCIAL RESULTS - Reports Record Q1 Net Revenues of $1.77 Billion - Delivers Q1 GAAP Diluted EPS of $0.27 and Non-GAAP Diluted EPS of $0.33 - Raises Full Year Guidance San Jose, Calif, April 18, 2007 — eBay Inc. (Nasdaq: EBAY; www.ebay.com) reported financial results for its first quarter ended March 31, 2007. eBay reported record consolidated Q1-07 net revenues of $1.77 billion, representing a growth rate of 27% year over year. GAAP operating income was $468 million, an increase of 45% year over year, and represented 26.5% of net revenues. Non-GAAP operating income in Q1-07 was $593 million, representing a 33.6% operating margin and a 29% year-over-year increase. GAAP net income in Q1-07 increased 52% year over year to $377 million, or $0.27 earnings per diluted share. Non-GAAP net income increased 34% year over year to $460 million, or $0.33 earnings per diluted share. GAAP and non-GAAP earnings per diluted share increased 59% and 39% year over year, respectively. The company purchased approximately 10 million shares of its common stock at a total cost of approximately $333 million during the quarter and may purchase up to an additional $2.0 billion of common stock through January 2009 under its stock repurchase program. “This first quarter of 2007 was a very strong one for the company,” said eBay Inc. President and Chief Executive Officer, Meg Whitman. “The strength of our core businesses, as well as the significant traction we’re beginning...
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...Intangible assets- practical approach An asset that is not physical in nature. Corporate intellectual property (items such as patents, trademarks, copyrights, business methodologies), goodwill and brand recognition are all common intangible assets in today's marketplace. An intangible asset can be classified as either indefinite or definite depending on the specifics of that asset. A company brand name is considered to be an indefinite asset, as it stays with the company as long as the company continues operations. However, if a company enters a legal agreement to operate under another company's patent, with no plans of extending the agreement, it would have a limited life and would be classified as a definite asset. While intangible assets don't have the obvious physical value of a factory or equipment, they can prove very valuable for a firm and can be critical to its long-term success or failure. During the past years, attention was brought to companies that are based only on intangibles, such a company is Amazon but also big companies that relied mostly on manufacturing goods, started paying more attention to intangibles. Oracle is an American multinational computer technology corporation headquartered in Redwood City, California, United States. The company specializes in developing and marketing computer hardware systems and enterprise software products – particularly its own brands of database management systems. Oracle is the third-largest software maker by revenue...
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