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ebay Case Study

About ebay: target segments analysis, customers service strategy and standards, competitors. Cross-channel Strategy.

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ebay Case Study

  1. 1. Oksana Troshchiev- Wissal Karoui- Cédric Jeanblanc December 2014
  2. 2. Summary 1. About 2. Target segments analysis, customers service strategy and standards 3. vs. Competitors 4. today
  3. 3. About
  4. 4. About How much was it sold on eBay ? 11424,1950 mmiilllliioonn $$
  5. 5. About Some facts about e-commerce and eBay: Global e-commerce sales will hit close to 1 trillion $ this year Asia holds the largest number of web purchases E-retail is predicted to account for 10% of US retail sales by 2017, thats 370 billion $ Is a global online marketplace where practically anyone can trade practically anything Has more than 152 million active users An item is purchased every 2 sec. using the eBay app. Popular items on eBay sell every… 2 sec. a car 3 sec. hand-bag 5 sec. womens clothing 9 sec. CD or football shirt
  6. 6. About Products & Services Collectibles: Antiques, Art, Coins, Toys & Dolls, Memorabilia Motor Vehicles: Cars, Boats, Parts Electronics: Cameras, Cell phones & PDAs, Computers Entertainment: Movies, Music & Games, DVD, CD, VHS, Event Tickets Books Clothing Jewelry Shoes Accessories Home Improvement: Décor, Crafts, Gardening… Target Segments Primary target markets are Online Auction & Shopping Key segment is Antiques & Collectibles And also Motor lovers, Art lovers Key figures Total active users: 152 millions in 39 countries More than 300 million items for sale + 6 million new items for sale each day, spread in to 50,000 categories 1,3 million people living partially or totally from eBay sales Competitors Amazon Alibaba Groupon Le bon coin Priceminister
  7. 7. About 1995 Created by Pierre Omidyar in USA in California 1999 International Development of the Website 2001 iBazar Acquisition 2004-2005 Acquisition and Creation of: 2002 PayPal Acquisition Rent.com Shopping.com and Kijiji 2008 1st marketplace creates a Mobile App 2010 eBay creates an iPad App
  8. 8. Business Model
  9. 9. Target segments analysis, customers service strategy and standards
  10. 10. eBay: Target Segments Primary target markets are Online Auction & Shopping communities eBay has business strategies to target specific segments of each. Key segment is : Antiques & Collectibles Motor lovers: Using credibility of leading car collector Kruse Inc., eBay expanded its categorical offerings with eBay Motors. eBay Motors became one of its most successful target segments. Art lovers: eBay also had a somewhat failed strategic partnership targeting Art Collectors directly.
  11. 11. What is the eBay API? The Application Programming Interface (API) is the heart of the Developers Program Normally, users buy and sell items using the eBay online interface, interacting with eBay directly. But with the eBay API, you communicate directly with the eBay database in XML format. By using the API, your application can provide a custom interface, functionality and specialized operations.
  12. 12. Buyers: Get the current list of eBay categories View information about items listed on eBay Display eBay listings on other sites Leave feedback about other users at the conclusion of a commerce transaction Sellers: Submit items for listing on eBay Get high bidder information for items you are selling Retrieve lists of items a particular user is currently selling through eBay Retrieve lists of items a particular user has bid on
  13. 13. vs. Competitors
  14. 14. Turnover : 75 billions USD Largest internet-based company At first : online bookstore Jeff Bezos Now : CD, MP3, downloads, videogames, softwares, electronics, furnitures, jewelelry, food…
  15. 15. Turnover : 6.5 billions USD Exponential growth business-to-business Jack Ma
  16. 16. Turnover : 5.3 billions USD Japan firm Founded in 1997 In France : Price Minister Operating : third party which connects supply and demand Hiroshi Mikitani
  17. 17. deal-of-the-day website Turnover : 2.5 billions USD Launched in november 2008 also called flash sales : single product for sale for a period of 24 to 36 hours Andrew Mason
  18. 18. 120 millions USD Created in 2006 French classified advertisements website First in France The owner : Schibsted Olivier Aizac
  19. 19. 80 70 60 50 40 30 20 10 0 Amazon Ebay Alibaba Rakuten Groupon Le bon coin Revenue
  20. 20. today
  21. 21. Strategic position Cross-channel Strategy Improve Create a user better experience: customer 1.To simplify experience and improve 1.Try to create value differentiation with online buying experience 2.To make online competitors shopping faster, easier 2.To increase buyer satisfaction and and fun loyalty
  22. 22. Strategic position Communication and media strategy The last campaign tagline is : « anywhere you go, anything you see, you can be inspired by the things around you and those things can be instantly shoppable on »
  23. 23. PESTEL ANALYSIS  Political  Economic  Social  Technological  Legal  Environment
  24. 24. Political Globalization able to break into a new market which previously closed challenges from foreign competitors  High government investment on ICT infrastructure faster, better and more reliable internet access user  Marketplace Fairness Act US state sales tax Increase the price of a product or service people would probably stop buying internet retail sales could decrease by up to 24% (Austan Goolsbee, 2000)  Government Intervention China’s internet regulators have made it difficult for foreigners to participate fully, giving local Chinese e-retailers an advantage from the offset (Dean, The Wall Street Journal, 2006)
  25. 25. Economic  Exchange rate  conduct significant business outside United States but profitability is reported in US dollar  Global economic condition  weak economic condition would limit the growth of revenue  change in consumer purchase pattern
  26. 26. Social  Lifestyle and attitudes change from a country to another they have to set different target, product or consumer categories * eBay failed to break into China market,  Increase in online social networking people are rely on internet can get everything easily from online shopping an opportunity to increase market share
  27. 27. Technological  Growth of internet  Low barriers of entry  more competitors  growth of internet user will increase public online consumption  Rapid development of high-speed network service  Third party online payment system  PayPal  provide an easy and secure way to make and receive payment online  reduce the risks of transaction
  28. 28. Legal Developed strategy have to comply with different legal locally and internationally The European Sales of Goods Act Data protection act in UK Federal Trade Commission in USA EU Electronic Commerce Directive The Electronic Signatures Law Increase the use of e-commerce of both consumers and business ensure a certain level of security in online shopping costs for online business
  29. 29. Environment Global warming and pollution awareness increase globally more online shopping have to be more ‘green’ to attract consumer eg: eco-packaging, work environment
  30. 30. Strengths Weaknesses Opportunities Threats
  31. 31. S W O T A firm known everywhere Lots of counterfeiting E-commerce traffic grows every year Arrival of some serious competitors from Asia : Alibaba and Rakuten
  32. 32. Thank You