e bay innovators

EBay InnovatorsRyan Carlyle

Blaine CarmichaelNick Kaufman

Lindsay Kessler Jessica Munson

Jeffery TwiggDecember 4, 20008

OverviewEBay, the world’s largest online marketplace, manages transactions between buyers and sellers. EBay provides an open trading platform where anyone can sell anything to anyone at any time. Intrigued by growth, innovation and connecting people through online payments and communication

Overview cont.PayPal enables secure transactions between online usersA global leader in online payment solutions149 million registered users Accounts for 9% of world wide ecommerce in 2008

Strategic Challenges

EBay faces increased competition from market sharing rival AmazonSlowing growth trends due to competition and deteriorating economic conditions have set the auction site profits backNiche sites, selling highly specialized products, have begun to cut into profits and market share, eBay finds it hard to keep up with such small market segments while managing an expansive corporation

Strategic DiamondEBay’s main arenas fall within ecommerce and the auction industry

Customers can access the site from anywhere in the world that has internet access

The vehicles for the company include acquisitions and internal development

EBay has acquired PayPal, several smaller auction sites and other companies such as Skype and Stubhub

Strategic Diamond cont.EBay has differentiated themselves from the competition through an endless variety of products, and their own unique payment structureStaging has been fast paced as they have acquired at least ten companies since 2002 including WorldofGood.com.

expanded through thirty nine markets and launched a business and industrial category

Strategic Diamond cont.EBay’s economic logic is to generate revenue from a system of collecting fees while avoiding overhead costs associated with brick and mortar stores

Sales stem from three segmentsMarketplaces (eBay, StubHub, Half.com) Communication (Skype) Payments (PayPal)

Company Revenue

Years

Insert 07 growth29%

Recommendation PayPal Reward Program

Offers incentives for eBay purchases through a point systemOne point for every dollar spent at an eBay affiliated sitePoints are tracked through customer’s PayPal accountThese can only be redeemed within the eBay community

Recommendation cont.

PayPal Rewards ProgramDesigned to give customers incentive to purchase more Remain loyal to the companyAttract new clientele away from niche sites to gain market share Increases profit as costs are minimal

Recommendation cont.

PayPal Rewards Program will be linked to all eBay affiliatesCounter stifled growthImprove brand imageAdvance core technologies

Summary