Case Study - Ebay 2000
THE PHILIPPINE WOMEN’S UNIVERSITY
Graduate School
Quezon City
STRATEGIC MANAGEMENT
EBAY IN 2002: THE CHALLENGES OF SUSTAINED GROWTH
Submitted by:
EMELITO REYMUND G. ORENCIA
SHEILLA MARIE D. APOSTOL
JOEM S. SALAZAR
MBA-EXE
Submitted to:
DR. FELIX E. ASPRER
Dean
I. OVERVIEW OF THE SITUATION
Ebay is founded in 1995 by Pierre Omidyar and is the world’s Online Marketplace. The company created a powerful platform for the sale of goods and services by a passionate community of businesses and individuals. Ebay’s site enables trade on a local, national and international basis with customized sites in markets around the world.
Ebay had experienced substantial growth and rapid evolution since it was founded in 1995 up to the year 2001. In 1996 the number of registered users are 41,000 and it went up to 341,000 in 1997 with a registered growth of 832 percent. In 1998 the registered users has increased by 640% from the previous year totaling at 2,181,000 number of users. In 1999 the growth registered at 459 percent compared to 1998 with a registered users of 10,006,000. In the year 2000 the growth registered at 225 percent from the previous year and in 2001 the growth is 189 percent compared to year 2000. Ebays gross merchandise sales in 1996 was seven million US dollars with significant increased in 2001 registered at 9.3 billion dollars with a growth of 1,328.58 percent.
In May 2001 eBay controlled 64.3% of the online auction revenue share far beyond its main competitor uBid.com, which, has emerged at that time gaining a market share of 14.7 percent. The three next largest competitors are, Egghead.com with 4.0 percent, Yahoo Auctions with 2.4 percent and Amazon Auctions with only 2.0 percent online market share. Represented less than 10 percent of the revenue share in the online auction market in mid 2001. Competitors of eBay are traditional and inefficient which resulted to three other
Graduate School
Quezon City
STRATEGIC MANAGEMENT
EBAY IN 2002: THE CHALLENGES OF SUSTAINED GROWTH
Submitted by:
EMELITO REYMUND G. ORENCIA
SHEILLA MARIE D. APOSTOL
JOEM S. SALAZAR
MBA-EXE
Submitted to:
DR. FELIX E. ASPRER
Dean
I. OVERVIEW OF THE SITUATION
Ebay is founded in 1995 by Pierre Omidyar and is the world’s Online Marketplace. The company created a powerful platform for the sale of goods and services by a passionate community of businesses and individuals. Ebay’s site enables trade on a local, national and international basis with customized sites in markets around the world.
Ebay had experienced substantial growth and rapid evolution since it was founded in 1995 up to the year 2001. In 1996 the number of registered users are 41,000 and it went up to 341,000 in 1997 with a registered growth of 832 percent. In 1998 the registered users has increased by 640% from the previous year totaling at 2,181,000 number of users. In 1999 the growth registered at 459 percent compared to 1998 with a registered users of 10,006,000. In the year 2000 the growth registered at 225 percent from the previous year and in 2001 the growth is 189 percent compared to year 2000. Ebays gross merchandise sales in 1996 was seven million US dollars with significant increased in 2001 registered at 9.3 billion dollars with a growth of 1,328.58 percent.
In May 2001 eBay controlled 64.3% of the online auction revenue share far beyond its main competitor uBid.com, which, has emerged at that time gaining a market share of 14.7 percent. The three next largest competitors are, Egghead.com with 4.0 percent, Yahoo Auctions with 2.4 percent and Amazon Auctions with only 2.0 percent online market share. Represented less than 10 percent of the revenue share in the online auction market in mid 2001. Competitors of eBay are traditional and inefficient which resulted to three other