The document provides an analysis of eBay's strategic position compared to its competitors. It includes an external environmental analysis using PESTEL, an industry analysis using Porter's 5 Forces and strategic group mapping. The internal analysis uses SWOT and value chain models. eBay's strategy of frontal attack on Amazon by selling all brands is discussed. The conclusion recommends eBay maintain its market share globally through brand marketing, technology development, and supporting customer communities through communication.
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Strategic evaluation of e bay
1. Strategic
Evaluation
of eBay
Competitive and Dynamic Rivalry
Personal Assignment
Pramita Wardani
1140003121
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2. About eBay
eBay positioning
External Environment Analysis
PESTEL
Industry Analysis
Strategic Group Mapping
Industry Trends
Porter 5 Forces
Internal Analysis
SWOT
Value Chain Model
Competitive Strategic Movement
Analysis
eBay Strategy
Conclusion and Recommendations
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3. About eBay
eBay positioning
The World's Online Marketplace
for the sale of goods and services by a diverse community of
individuals and businesses, provide a global trading platform where
practically anyone can trade practically anything.
Founded in September of 1995 , eBay.com is a global online marketplace
where practically anyone can trade practically anything.
eBay Inc. has a global presence in 39 markets, including the U.S.
Marketplaces have approximately 104 million active users worldwide.
Marketplaces net revenues totaled $1.8 billion in Q2 2012.
In Q2 2012, gross merchandise volume (GMV), the total value of all
successfully closed items on eBay Inc.’s trading platforms, was $ 16 billion .
eBay.com users worldwide trade $2,080 worth of goods on the site every
second.
The most expensive item sold on eBay to date is a private business jet for
$4.9 million
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4. About eBay
eBay positioning
eBays also owns :
as Pay Pal, Skype (it was sold in 2009, but eBay still owns 30% of the
share), iBazar, etc
The eBay’s revenue streams are from :
• Insertion fees
• Promotional fees
• Final value fee
Logo transformation :
1995-2012 2012 4
7. PESTEL
e-Commerce is a big business that collects many money.
The legal aspects in every The economic growth is
country are different. relatively low or even negative
eBay must aware and in western countries and
adapt quickly through furthermore Europe but as an
this situation. emerging economic force, Asia
and in this case China is having
a really good economic
growth, even Indonesia is
having a raise in GDP.
internet is relatively easy to • social networkers are
get nowadays, and also expanding as well.
the implementation of • People lifestyles are also
technology have endless changing
potential
Emerging of internet
technology applications
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9. Strategic Map Group
Strategic Group Map of Online Retail Industry in year 2012
Strong
Brand Awareness/Reputation
Weak
Broad Number of Product Categories Narrow
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11. • Nowadays, many companies who has physical store now
Porter’s 5 Forces are expanding in the online shopping industry. Those
companies are more trustable than the online shopping
HIGH who has no physical store.
Potential New Entrants
HIGH HIGH
• eBay customers
• Suppliers have a
Suppliers Bargaining Power
Industry Rivalry have the option of
Buyers Bargaining Power
medium power in
buying the products
the sense that much
and services they
of eBay’s own
desire on the
inventory could be
hundreds of
obtained from
thousands of other
numerous suppliers
retail web sites on
across the country
the internet.
or even across the
globe. HIGH
• eBay has countless competitors, and
since Amazon offers such an extensive
selection there are more companies
competing with its products and
services.
Substitute Products
HIGH
• There are a lot of companies that can substitute eBay.
Most of the companies have a physical store and also
online store. 11
13. SWOT
Strengths Weakness
• eBay is the leading global • System breakdowns could
brand for online auctions affect the trading activities of
eBay
Opportunity SO Strategies WO Strategies
• Acquisitions provide new • Global expansion • Diversify into new product
business opportunities markets
• Market penetration in internet • Online verification of products
users are increasing • Strategic alliance with couriers
• Changing of people lifestyle
and habits
Threats ST Strategies WT Strategies
• Credit card charges cant be • Acquisition strategy-global • Alliance to postal services
controlled expansions
• Illegal practice • Use online security protocols
as like as banking for
verifications of authenticity
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14. Value Chain Model
LEGAL
FINANCE
MARGIN
HUMAN RESOURCES
Te c h n i c a l D e v e l o p m e n t + ( R & D )
Conversation
from traffic to Auction
Marketing Peer Review
buyers and Process
sellers
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15. Value Chain Model
Value chain analysis, comparing the competencies of eBay and amazon.com:
Comparison eBay Amazon.com
Competencies Technical proficiency Technical proficiency, Usability,
Usability Shipping
Core Competencies Bidding site Catalogue site, Product review,
Conversion rate (traffic to Conversion rate
subscribers)
Distinctive Peer review Cross-Selling
Competencies
The main differences between eBay and amazon.com are :
eBay Amazon.com
eBay started with used products and its now Amazon.com started with books and then new
expanding into new products products. Now it’s distributing used products as
well.
Community focus-connects people Product Focus
Virtual product, with no ownerships or Handles physical products and takes ownership
handling of physical products
Facilitates transactions Warehousing, Packaging and delivery
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17. Ebay Strategy
The frontal attack strategy deployed by eBay to Amazon.com:
No The Frontal Attack Amazon.com eBay
Strategy
1 Industry Segment Online retail industry Online retail
industry
2 Competitor weakness In 1994, amazon only In 1995, eBay sell
sells book online anything
3 Achievement Amazon.com
4 Selling Strategy Tend to sells big-name Sells every brand,
brand from no name
and big brand
name
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18. Ebay Strategy
The holding the ground strategy deployed by eBay and Amazon.com
No Holding the ground eBay Amazon.com
Strategy
1 Products Sells anything From book, they changed
their business model and sell
anything
eBay started with used products Amazon.com started by
and its now expanding into new selling books and new
products product, now the sell used
products
2 Selling system eBay uses auction Amazon.com used fixed
price and auction
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20. Conclusion and Recommendations
Conclusion Next Step
Market eBay market size in global is big, but eBay must keep maintaining its market
many competitors are rising up share in global and also maintain its
because of the fast growing market. growth initiative as well.
Economic of scale eBay’s generate traffic to get Maintain its brand image and advertising
subscribers efforts
Vertical integration eBay already have up-and- eBay must identify and make a selection
downstream integration as their on what company could they take over as
competitive advantage an acquisition, to create a stronger
vertical integration
Technology The emerging of internet technology eBay must develop some software
applications are growing fast. eBay application that meets the need of the
adapt very quick in technologies, customer using the latest technology.
such as eBay mobile for ipad and
androids.
Communities of Creates added value through base of Support the information through internal
interest additional information communication such as newsletters for
customers, both seller and buyers.
Globalization Opens new market Support multi language platforms or
communicate advantage of global market
to customers
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21. Strategic
Evaluation
of eBay
Competitive and Dynamic Rivalry
Personal Assignment
Pramita Wardani
1140003121
21
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