eBay Case Study E-commerce eBay Strategy Case Study prepared for E-business‚ Internet Marketing and E-commerce lecturers and students. Last update‚ March 2009. Case Study: eBay thrives in the global marketplace I recommend students researching eBay checkout the latest eBay statistics and business strategies from their SEC filings. The annual filings give a great summary of eBay business and revenue models. Alternatively filings are included in the eBay press releases which also have info on
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CASE ANALYSIS I. Background of the Study A pioneer and a market leader in the online auction industry‚ eBay has been able to grow the business significantly in the last decade amidst turbulent times for many contemporary dotcom companies. EBay’s strategy to focus on a niche market and differentiate itself through strong brand management and continuous improvement in the value-added services has enabled the company to defend the market leadership in the industry. While many new competitors
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EBay Case Analysis Step One: Read. Step 2: Dupont Ratio and Financial Analysis o Two year Financial Ratio o Short Term o Current Ratio 2002: 1‚468‚458/386‚224= 3.8 2001= 4.9 o Long Term o Total Debt Ratio Total ass. Total equity/ Total ass. 2002= .1377 2001= .1485771 o Asset Utilization‚ or turnover ratios o Total Asset Turnover Sales/ total assets 2002= .29 2001= o Profitability o Return on assets= net income/ total assets o 2002= .0117 o 2001= .053885
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Submitted by: Atika Imtiaz (7184)‚Hira Sarwar (7208)‚ Khadija Tahir (7554)‚ M. Waqas Moghul (7727)‚ Natasha Akber (7546)‚Shayan Rasool(8093) Submitted to: Mr. AbdulQadir Molvi | Table of Contents ACKNOWLEDGEMENT 3 eBay 4 INTRODUCTION TO eBAY : 5 FINANCIAL ANALYSIS OF THE CASE: 7 PORTER’S FIVE – FORCES MODEL: 11 RIVALRY AMONGST COMPETING SELLERS: 12 SUPPLIERS 13 THREAT OF SUBSTITUTES 14 BUYERS 14 THREAT OF NEW ENTRANTS 15 INTERNAL AUDIT: 17 EXTERNAL AUDIT 19 INTERNAL FACTOR
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1. What are the greatest opportunities and threats existing in eBay’s current external environment? In the current external environment the online sales are still a growth industry there are some opportunities for ebay‚ the actual global economic crisis it could be an opportunity due the unemployment and the decrease in the power purchasing parity and mortgage crisis generates two effects‚ first the buyers are look for discounts‚ and second the sellers by this channel could increases. The importance
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eBay is currently the top-ranked online auction company within its industry‚ with nearly one-third of U.S. internet users registered on its site. The mission of eBay “is to provide a global trading platform where practically anyone can trade practically anything.” Millions of people buy and sell items on eBay every day‚ and because eBay is a for profit company‚ it gets a cut of the profit from each sale for itself. There are several objectives that eBay strives to meet on a daily basis. First
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4. eBay is positioned well to successfully compete with its top three competitors‚ Amazon‚ Google and Overstock. Table 1 provides a financial comparison of eBay with its top three competitors. eBay is a distant third from Google with a market capitalization of $64 billion but is first or second in key ratio comparisons (eBay Direct Competitor‚ 2012). Specifically‚ eBay is first or second in several key ratios such as Gross Margin‚ Operating Margin‚ Earnings Per Share and Price/Earnings. The Operating
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Why has Ebay succeeded as an online auction marketplace while so many others have failed? eBay was one of the first online marketplaces on the world-wide web. It was created as an online auction website‚ but it has now became the largest online marketplace that exists. eBay’s success truly created a pricing revolution by allowing buyers to determine what they would pay for an item; the result pleases both sides because customers gain control and receive the best possible price while sellers make
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Description 2. Question 2.1 What is competition like in the online auction industry? How strong are the competitive pressures confronting eBay and other online auction firms? 2.2 What forces are operating in the online auction macro-environment that has the power to alter the nature and structure in the online auction industry? 2.3 What does a strategic group map reveal about the positions of the major players in the online auction industry? Is eBay in a good position on the map? Why or why not? Who are
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eBay and Online Auction Industry Analysis eBay was founded in 1995 and has grown into a multibillion dollar corporation. The online auction industry has grown dramatically since the 1990s. Like its competitors‚ eBay does not produce any goods. eBay’s business model is to make money from the movement of information through the Internet. It does not produce a tangible product but provides the service of joining independent sellers and buyers together. It makes its revenue by charging sellers commissions
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