Description
It explains business model of ebay pricing strategy of eBay, auctions method of ebay, strength and vulnerabilities of ebay.
1/21/2013
Slide no. 1
Agenda
• • • • • • • • eBay – The Company Business Model of eBay Acquisitions Pricing Methods Auction Methods of eBay Strengths Vulnerabilities Recommendations
Slide no. 2
1/21/2013
eBay – The company
• eBay’s mission is ‘to provide a global trading platform where practically anyone can trade practically anything.” • The online auction website was founded as AuctionWeb in San Jose, California, on September 3, 1995, by French-born Iranian computer programmer Pierre Omidyar.
• The company officially changed the name of its service from AuctionWeb to eBay in September 1997
• eBay is the world's largest online marketplace, where practically anyone can buy and sell practically anything, with more than 90 million active users globally
1/21/2013
Slide no. 3
Business Model of eBay
• eBay is an online person-to-person trading community on the Internet, where buyers & sellers come together • sellers are permitted to list items for sale, buyers to bid on items of interest and all eBay users to browse through listed items
• Browsing and bidding on auctions is free of charge
• Revenue generation : sellers are charged two kinds of charges – Insertion Fee • additional listing options – A Final Value fee
1/21/2013
Slide no. 4.
Acquisitions
• A total of 26 companies have been acquired as of April 2008. Few of them are: – PayPal: PayPal has made it possible for people to pay and get paid online across different locations, currencies, and languages. – Skype: connect people around the world & expanded its customer base – StumbleUpon : StumbleUpon is a discovery engine that finds the best of the web. It uses positive and negative user ratings to form collaborative opinions on website quality.
1/21/2013
Slide no. 5
Pricing Method
• 6 types of pricing methods – Markup Pricing – Target-Return Pricing – Perceived Value Pricing – Value Pricing
– Going-rate Pricing
– Auction type pricing • English auction
• Dutch auction
• Sealed-bid auction
1/21/2013
Slide no. 6
Auction Methods of eBay
• • Normal Auctions Reserve Auctions
• Fixed Price or ‘Buy it Now’ auctions
• Multiple items or ‘Dutch’ auctions
1/21/2013
Slide no. 7
Strengths
• eBay, worlds largest online auction website with more than 90 million active users globally. • The term 'eBay' has become a generic term for online auctions.
• Effective use of Customer Relationship Management
• EBay now controls the biggest share in the Customer to Customer e-market
1/21/2013
Slide no. 8
Strengths
• Provides extra ordinary search tool • EBay.com was rated to be the easiest website to navigate by special rating websites like Gomez.com
• Business Model : No issues of managing inventory
• eBay’s Intellectual property
• Diversification of products & markets
• Acquisitions
1/21/2013 Slide no. 9
Vulnerabilities
• Fake Auctions • System breakdown could effect the trading activities of eBay • Competitors – Bonanzle – Amazon.com – Yahoo – Overstock.com – Google • Payment method • Shipping of products • Inability to control the contents of the auction and auction items • Expansion into Different Geographies
1/21/2013 Slide no. 10
Recommendations
1/21/2013
Slide no. 11
Recommendations(Contd.)
1/21/2013
Slide no. 12
References
Marketing Management 13edition-Philip Kotler http://pages.cs.brandeis.edu/~magnus/ief248a/eBay/history.ht ml http://techcrunch.com/2009/09/04/ebay-acquisition-mapshows-where-it-got-on-the-wrong-track/ http://www.ebayinc.com
http://en.wikipedia.org/wiki/Criticism_of_eBay
1/21/2013
Slide no. 13
doc_724430889.pptx
It explains business model of ebay pricing strategy of eBay, auctions method of ebay, strength and vulnerabilities of ebay.
1/21/2013
Slide no. 1
Agenda
• • • • • • • • eBay – The Company Business Model of eBay Acquisitions Pricing Methods Auction Methods of eBay Strengths Vulnerabilities Recommendations
Slide no. 2
1/21/2013
eBay – The company
• eBay’s mission is ‘to provide a global trading platform where practically anyone can trade practically anything.” • The online auction website was founded as AuctionWeb in San Jose, California, on September 3, 1995, by French-born Iranian computer programmer Pierre Omidyar.
• The company officially changed the name of its service from AuctionWeb to eBay in September 1997
• eBay is the world's largest online marketplace, where practically anyone can buy and sell practically anything, with more than 90 million active users globally
1/21/2013
Slide no. 3
Business Model of eBay
• eBay is an online person-to-person trading community on the Internet, where buyers & sellers come together • sellers are permitted to list items for sale, buyers to bid on items of interest and all eBay users to browse through listed items
• Browsing and bidding on auctions is free of charge
• Revenue generation : sellers are charged two kinds of charges – Insertion Fee • additional listing options – A Final Value fee
1/21/2013
Slide no. 4.
Acquisitions
• A total of 26 companies have been acquired as of April 2008. Few of them are: – PayPal: PayPal has made it possible for people to pay and get paid online across different locations, currencies, and languages. – Skype: connect people around the world & expanded its customer base – StumbleUpon : StumbleUpon is a discovery engine that finds the best of the web. It uses positive and negative user ratings to form collaborative opinions on website quality.
1/21/2013
Slide no. 5
Pricing Method
• 6 types of pricing methods – Markup Pricing – Target-Return Pricing – Perceived Value Pricing – Value Pricing
– Going-rate Pricing
– Auction type pricing • English auction
• Dutch auction
• Sealed-bid auction
1/21/2013
Slide no. 6
Auction Methods of eBay
• • Normal Auctions Reserve Auctions
• Fixed Price or ‘Buy it Now’ auctions
• Multiple items or ‘Dutch’ auctions
1/21/2013
Slide no. 7
Strengths
• eBay, worlds largest online auction website with more than 90 million active users globally. • The term 'eBay' has become a generic term for online auctions.
• Effective use of Customer Relationship Management
• EBay now controls the biggest share in the Customer to Customer e-market
1/21/2013
Slide no. 8
Strengths
• Provides extra ordinary search tool • EBay.com was rated to be the easiest website to navigate by special rating websites like Gomez.com
• Business Model : No issues of managing inventory
• eBay’s Intellectual property
• Diversification of products & markets
• Acquisitions
1/21/2013 Slide no. 9
Vulnerabilities
• Fake Auctions • System breakdown could effect the trading activities of eBay • Competitors – Bonanzle – Amazon.com – Yahoo – Overstock.com – Google • Payment method • Shipping of products • Inability to control the contents of the auction and auction items • Expansion into Different Geographies
1/21/2013 Slide no. 10
Recommendations
1/21/2013
Slide no. 11
Recommendations(Contd.)
1/21/2013
Slide no. 12
References
Marketing Management 13edition-Philip Kotler http://pages.cs.brandeis.edu/~magnus/ief248a/eBay/history.ht ml http://techcrunch.com/2009/09/04/ebay-acquisition-mapshows-where-it-got-on-the-wrong-track/ http://www.ebayinc.com
http://en.wikipedia.org/wiki/Criticism_of_eBay
1/21/2013
Slide no. 13
doc_724430889.pptx