1. Connecting buyers and
sellers globally

2. What is eBay?
 Online auction and shopping
website
 Offers three types of auction:
i. Auction style listings
ii. Fixed price format
iii. Fixed price format with
best offer

3. The history of eBay Inc
 Founded in 1995
 Went public on 1998
 Has its own online pay service,
PayPal Inc
 First CEO-Meg Whitman
 John Donahoe took over in 2008

4. 5 Amazing Facts
1) Ebay was originally called
AuctionWeb

5. 2) EBay was launched during
 Labour Day in 1995
 By French-born Iranian-
American computer programmer
Pierre Omidyar
 In his living room in San
Jose,California

6. 3) The first AuctionWeb logo
 Was called Death Bar
 By eBay staff
 Boxy black-and-white logo

7. 4) First item listed on eBay
 Broken laser pointer
 Sold for $14.83
 Experiment by Omidyar

8. 5) Most expensive purchase
 Frank Mulder’s Gigayacht(10
multi-level VIP rooms,8 guest
rooms,a movie theater,a
helicopter pad)
 Sold for $168 million in 2006
 To Russian billionaire Roman
Abramovich

9. The world’s largest online marketplace – where
practically anyone can trade practically

12. Five Forces Model of
Competition
Substitute - Traditional Auction
Supplier – Industry Buyer – Bargain
Casual/Corporate Rivalry - Hunter/Professional
seller Amazon buyers
Potential New Entrants – Tech barriers of
entry does not exist

13. Meg Whitman (1998-2007) John Donahue (2008-
Present)

15. CEO JOHN
DONAHUE (2008 -
PRESENT)
Revolutionary strategy for eBay

16. By 2008, eBay has fallen
behind…

17. And thus,….

22. WILL THESE CHANGES……
BE A GAME – CHANGING TRANSFORMATION
OR SUICIDAL?

25. SWOT Analysis

26. Strengths
 Brand Recognition
 Popularity
 Ownership of PayPal
 Business Model

27. Weaknesses
 Advertising revenue
 Increased expectations
 Limited control on fraud
 Technology malfunctions

28. Opportunities
 Increased internet usage
 International expansion
 Acquisition of yahoo.com’s online
shop
 Divestment of Skype

29. Threats
 Consumer confidence
 Seasonality
 Ease of entry into market
 Interest and foreign currency
exchange rates

30. QUESTIONS

31. Question 1
Analyze the marketing environment and
the forces shaping eBay’s business over
the years.
• Early years
- Marketing environment was simple and
dynamic
- Few competitors
- Threat of substitutes
- Few suppliers
- High importance of supplier’s products
- Specialised products

32.  Recently
- Marketing environment complex and
dynamic
- Many suppliers
- More competitors
- High importance of suppliers product
- Standardised and specialised items.
- Product differentiation

33. Question 2
How has the change in the nature of
eBay sellers affected the creation of
value for buyers.
- Fixed price, quick service and free
shipping

34. Question 3
Do you agree or disagree with
Donahoe that eBay’s current strategy
doesn’t mean that certain sellers will
lose.
- Disagree
- Traditional retailers lose out

35. Question 4
Is eBay doing the right thing by
sticking to its current strategy. What
changes, if any, would you
recommend to Donahoe?
- Right thing to a certain extent
- Have a fee reduction for auction
bidding systems