ebay’s original business model focused on auctions. Amazon vs. eBay: A Case Study In Business Models. Over the last 20 years, EBAY’s consolidated e-commerce model has produced more earnings than AMZN’s, but is a distinctly different business model. EBay’s business model A business model … eBay Business Model. The industry analysts have 2020 consensus estimates for them to earn $3.50 after-tax profit per share, which means eBay trades at just over 14 times this year’s profit. eBay also makes money through advertising on its … This creative site sets them apart from their competitors. The ‘Making eBay Work’ case study is divided into three sections namely; eBay’s business model, eBay’s management and Competition and cooperation. ebay Case Study 1. … Competitors 4. today 3. Business Strategies of eBay Business Model eBays has been continuously transforming it self to the better version from the beginning. eBay also holds alliances with some of the largest companies in the world. How Does Ebay Work – Business Model, Strategies, Key-facts, Funding And Success Secrets. By showing the customers that their feedback, opinions, and feelings are important eBay has gained tremendous ground with their customers. Naiya Sharma; 13 November 2019; 7402; eBay … There are a few specific elements of eBay’s business model that they recognized as key to its success they are: By implementing their business model, eBay employed three main tactics. Portfolio composition is subject to change at any time and references to specific securities, industries and sectors in this letter are not recommendations to purchase or sell any particular security. eBay’s original business model mainly focused on auctions. Case Summary: Making eBay work. The road to success is always under construction. About How much was it sold on eBay … Contrast eBay’s original business model with its current business model. This compares to eBay's consensus of 12%. 1. Readers can insert their own multiples here in picking whatever number they think is realistic. It has a market cap of $1.27 trillion. Case Study Questions . The wide variety of products offered on eBay gives them a competitive advantage above all other online auction sites. eBay has a business model far different from Amazon, which is drastically easier to run and maintain. Target segments analysis, customers service strategy and standards 3. vs. This got us thinking about business models and how profitable they can be. Contrast eBay’s original business model with its current business model. Following this model, the company started to show description of product and attractive visualisation, which motivated customers to buy product from EBAY site. A Case Study on International Expansion: eBay eBay was founded in September 1995 by Pierre Omidyar to create an open marketplace for everyone in the world to trade with one another. var jo = document.createElement('script'); eBay’s founder Pierre Omidyar did not even see the tremendous possibilities that eBay had when it was first developed over ten years ago. Its technology may have been innovative- but its business model was not. ebay’s ecommerce was focused on online auction market. eBay core business is a platform business model that makes money from transaction fees happening through its marketplaces (eBay and StubHub). Case Study: America Online (AOL) Merger with Time Warner (TWX), Marketing Orientation Approach to Business, The Technology Push for Knowledge Management, How to Develop Positive Relationships with Individuals and Organizations Outside of Your Business, Competitive Analysis of DELL using Porter's Five Forces Model, Case Study: Amazon.com Situation Analysis. Required fields are marked *. Today, eBay is continuously the brand preference with over 39 market presence and with $60 billion of the total value of sold items on the site’s trading platform. eBay was the creator of the online auction industry. Case Study Questions on eBay 1. Target segments analysis, customers service strategy and standards 3. vs. A list of all recommendations made by Smead Capital Management within the past twelve-month period is available upon request. Amazon has two main components, AWS and e-commerce. Case study analysis ebay - top-ranked and cheap report to ease your studying Cooperate with our writers to get the quality review meeting the requirements Forget about those sleepless nights working on … Ebay business model case study pdf Essay about genetic diversity. eBay’s business model was based on creating and maintaining a person-to-person trading community. Amazon marketing strategy: Business case study, revenue model and culture of customer metrics: History of Amazon.com. EBAY is a virtual exchange where … eBay is currently the first ranked online auction company within its industry, with nearly one-third of U.S. internet users registered on its site. We then compared 20 years of e-commerce profits on a per-share basis. When customers visit eBay they can search for virtually any product. This community feel gives customers the sense that they are branch of something and cared about. It also allows sellers to post their items minutes after they have registered. eBay has determined a way to satisfy their customers whether they are large businesses or individuals. This has given them the prestige of being the world’s largest online auction company. Sellers are charged a non-refundable insertion fee: US$ 0.10 to $2.00, depending on the opening bid. © 2020 VALUEWALK LLC. On the other hand, eBay … Contrast ebay’s original business model, ebay’s current business model … Remember, we are a couple of hypothetical 28-year-old business students at Harvard. jo.src = 'https://www.financialjuice.com/widgets/voice-player.js?mode=inline&display=1&container=FJ-voice-news-player&info=valuewalk&r=' + r; Ebay Case Study: EBay is the American multinational corporation which offers the services of online auctions (the primary activity), internet stores, shopping, money transfer, etc. Third, the average annual earnings growth for the past decade has been 4.4% for eBay vs. 12.8% for Amazon (ex-AWS). To increase its geographic reach and to move into related businesses such as online payments, to obtain technology that will strengthen its product differentiation, eBay has completed many acquisitions such as Half.com in 2000 to enter the fixed price market price for products like used books, CD’s, games and DVD’s; Paypal to enable sellers to receive online payments from buyers’ credit cards or checking account; Shopping.com that allows people to search for products and compare prices, and Rent.com that joins landlords and tenants online, charging property owners for each lease produced. Amazon’s fee structure is a bit more complicated, … Using the forward expected GAAP earnings of $3.50 for eBay, Graham’s formula implies Intrinsic Value of $91 per share vs. its current price of $47.69 per share as of June 15, 2020. CASE STUDY: eBAY E-Commerce Angeline Close About eBay eBay is The World’s Online Marketplace™. We will leave the Amazon stock in the “too hard” pile and tip our caps to those who it makes wealthy despite these contrasts. ValueWalk.com is a highly regarded, non-partisan site – the website provides unique coverage on hedge funds, large asset managers, and value investing. Zero Halliburton Elite 3" Attache Aluminum Model CE3A-SI. When Whitman arrived in 1998 as eBay’s second president and CEO, eBay became a public listed company in September of that year, brand building recognition at eBay was prioritized. Brand Stories. Google also aligned with eBay in 2006, making Google the primary advertiser on eBay’s websites outside of the United States. $54.53 shipping. In July 2020, Amazon reported a 43.4% increase in North American … Over the last 20 years, EBAY’s consolidated e-commerce model has produced more earnings than AMZN’s, but is a distinctly different business model. Google sought to integrate Skype into the alliance as a method to further sales from Web advertising. The report also illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on eBay. Oksana Troshchiev- Wissal Karoui- Cédric Jeanblanc December 2014 2. eBay Business Model. The business model of eBay … Therefore, we performed the case study using one of the most popular e commerce site “eBay”. Current consensus opinion on Amazon’s future long-term earnings growth rates is 26% per annum, consolidated. The author of this theory suggests that firm must be … By offering a wide variety of products, globally expanding, and creating a community for all customers to join eBay has created a distinctive value unmatched by its rivals. eBay has begun to move away from its origins as … They are (as given in the case study): It is the largest online trading forum with a huge mass of buyers and sellers, and … In preparing this document, SCM has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources. The road to success is always under construction. They have created value through many facets of their business that appeal to their customers and differentiate them from the competition. b… Contrast ebay’s original business model with its current business model. Case Study Questions. Became the exclusive advertising provider on eBay and PayPal became Yahoo!’s preferred provider. eBay also makes money through advertising on its … About 2. ebay’s ecommerce was focused on online auction market. Case Study: eBay thrives in the global marketplace I recommend students researching eBay checkout the latest eBay statistics and business … var r = Math.floor(Math.random() * (9999 - 0 + 1) + 0); ValueWalk also contains archives of famous investors, and features many investor resource pages. eBay Case Study E-commerce eBay Strategy Case Study prepared for E-business, Internet Marketing and E-commerce lecturers and students. Basically, eBay introduced several crucial innovations tailor-made for the internet at the business level, a strategy which was conceived to be an improvisation. Your email address will not be published. After implementing their business model, eBay has been able to build strategic partnerships, continue to make innovative changes and improvements, and monitor its internal and external environments for possible future opportunities. ebay’s original business model focused on auctions. eBay’s leadership unveiled a three-year revival plan. The information contained in this missive represents Smead Capital Management's opinions and should not be construed as personalized or individualized investment advice and are subject to change. We have created it as an update for students and professional using Dave Chaffey's books which feature this case study. Meeting an existing need, an online auction, particularly for secondhand goods, {9} in which: {1} {16} a. Brand Stories. Founded in the year 1995, eBay is an e-commerce corporation which is working all around the world. Competitors 4. today 3. Contrast eBay’s original business model with its latest proposed business model. Danfeng Yu Case Study – eBay Evolves 1. Business Strategies of eBay Business Model eBays has been continuously transforming it self to the better version from the beginning. The corporation manages the well-known web site ebay… Founded in 1995, eBay created a powerful platform for the sale of goods and services by a passionate … Meeting an existing need, an online auction, particularly for secondhand goods, {9} in which: {1} {16} a. Ebay business model case study pdf . Therefore, Amazon's e-commerce business model is doomed to low profit margins as they pursue massive totally addressable markets. ebay business model case study. Over the last 20 years, eBay's consolidated e-commerce model has produced more earnings than Amazon's, but is a distinctly different business model. Initially, Amazon sought to merely replicate a catalog business model online. The cash-flow generated by eBay has allowed it to buy back ample amounts of its own stock. Which is the best example of a case study quizlet: bullet points for essays aca case study exam length task response essays research … Amazon vs. eBay: A Case Study In Business Models, Please speak to a licensed financial professional, Dexamethasone: Covid-19 treatment triggered a rally in stocks, OSS Research Short Tactile Systems Technology, Weakness In Vaccine Rally Stars Points to Short-Term Trouble, Congress Close To A Deal On COVID Stimulus Checks, Dr. Moncef Slaoui On Pfizer And BioNTech’s Covid Vaccine. On June 4, 2020, eBay Inc (NASDAQ:EBAY) released a business update to make investors aware that the quarantine circumstances have caused their business … One that will help make bigger, better decisions in the future. Following this model, the company started to show description of product and attractive visualisation, which motivated customers to buy product from EBAY site. CMIS3350 Diya Alwan, Crystal Willette, Lacey Grandjamb, and Hanan Abouon eBay Evolves Case Study 1) Contrast eBay’s original business model with its current business model. Founded on 1995 by Pierre Omidyar, eBay was considered a pioneer in the online auction industry whereby people are brought together on a local, national and international basis to serve the purpose of creating a person-to-person community where ever individual could have an equal access through the same medium which is the Internet. In this post, we will be diving deep into the business model of eBay and go through its success story of becoming multi-billion dollar business … They now have over 94.9 million registered users in more than 150 different countries. document.getElementsByTagName('head')[0].appendChild(jo); eBay Business Model. By conducting an exploratory single case study approach, we confirmed these categories by identifying the distinct reasons for eBay to introduce a competing business model. However as time passed, people started to more likely buy goods at fixed price rather than racing for an auction price. Second, they looked for customer feedback to constantly make changes and improvements. Subscribe to ValueWalk Newsletter. On June 4, 2020, eBay Inc (NASDAQ:EBAY) released a business update to make investors aware that the quarantine circumstances have caused their business to perform “significantly better than expectations,” compared to their earnings report on April 29, 2020. In 2010, the transaction volume of eBay China reached $4 billion. Case Study Questions on eBay 1. First, eBay has generated more cumulative earnings per share for its shareholders over the last 20 years than Amazon has, sans its cloud business. How profitable have these two platforms been in the past? By choosing this strategy eBay determined that the best way to achieve a sustainable competitive advantage over its rivals was to differentiate their service. Last update, March 2009. EBay’s business model recognizes these specific elements as a key to its success. eBay and Amazon case study  7/30/2013 eBay, Inc. and Amazon.com (A) Situation of the case: eBay is now faced with a direct competitor, Amazon.com Even though Amazon.com has received most of the hype and publicity surrounding e-commerce, eBay has also built an innovative business … EBay’s business model A business model … The way in which eBay has set their online auction site apart from its competitors has lead customers to prefer their site over other online auctioneers and retailers. The global reach of eBay is not achieved by any other online auction site. The eBay uses a Consumer-to-Consumer (C2C) business model, which entails the creation of an online platform where consumers can communicate and trade anytime via the Internet. eBay has been successful by: 1. Ending ... Make Offer - Tumi Alpha 3 Organizer Genuine Leather Laptop Bag Briefcase Business case … eBay core business is a platform business model that makes money from transaction fees happening through its marketplaces (eBay and StubHub). Development of online auction model has helped the business to operate at low cost in the market. This Missive and others are available at www.smeadcap.com. They are like the Wal-Mart of the Internet! eBay boasts a category variety not matched by any competitor with over 27,000. eBay wants their customers to feel like they are a part of a community. By partnering with established foreign companies, like Alando in Germany, iBazar in France, Tradera in Sweden, Internet Auction in South Korea and Bazee in India, eBay is able to easily transition into that countries culture with the help of citizens who work with the partnering company. The pricing policy is mainly demand driven and customer oriented. The company is a substantial threat internationally as well, competing in the Asian, European, and Latin American markets. Over the last 20 years, EBAY's consolidated e-commerce model has produced more earnings than AMZN's, but is a distinctly different business model. The business model of eBay deals with the Business to Consumer and Consumer to Consumer Sales via eBay website and application.. About 4. This allows buyers to easily search for what they want to purchase. Organizational Project Management Maturity Model (OPM3), Case Study: Causes of the Recent Decline of Tesla, Psychological Contract - Meaning and Importance, How has Trading Been Affected in Asia Due to Corona, achieve a sustainable competitive advantage, Understanding Different Types of Supply Chain Risk, Supply Chain Integration Strategies – Vertical and Horizontal Integration, Understanding the Importance of International Business Strategy, Employee Participation and Organization Performance, PRINCE2 Methodology in Project Management, Psychological Contract – Meaning and Importance, Workplace Effectiveness: Easy Tips to Bring the Team Together, Portfolio, Programme and Project Management Maturity Model (P3M3), Case Study on Entrepreneurship: Mary Kay Ash, Case Study on Corporate Governance: UTI Scam, Schedule as a Data Collection Technique in Research, Role of the Change Agent In Organizational Development and Change, Case Study of McDonalds: Strategy Formulation in a Declining Business, Roles and Responsibilities of Human Resource Management, Interview Method of Data Collection in Research. eBay positions itself in the online auction industry using a broad differentiation strategy. Summary 1. This site uses Akismet to reduce spam. When customers think of online buying the immediately think of eBay. Accordingly, eBay does not have any costs associated with Covid issues for warehouse workers, wage-creep, or the other labor-oriented issues that Amazon has had to deal with lately. The users of eBay have many different preferences and needs depending on why and how they use the service. Current and future portfolio holdings are subject to risk. eBay … This study investigates how this website is performing its operation and how it is supporting the e-commerce. (Photo: Public Domain) eBay … Tom eBay has done much to win the trust of Chinese consumers such as using escrow service to hold payments until buyer confirms satisfactions with the product. Naiya Sharma; 13 November 2019; 7402; eBay … We are comfortable owning businesses based on free cash flow and profit growth. From its beginning in the mid-1990s, eBay has been growing in leaps and bounds. Other acquisitions would include Stubhub.com in 2007, a secondary ticket place marketplace that integrates guaranteed fulfillment and shipment using FedEx. Ebay Case Study: EBay is the American multinational corporation which offers the services of online auctions (the primary activity), internet stores, shopping, money transfer, etc. Bill Smead, CIO and Tony Scherrer, CFA, Director of Research and Portfolio Manager wrote this article. Vrio analysis for Ebay Case Study case study identified the four main attributes which helps the organization to gain a competitive advantages. eBay’s registered users had grown six-fold, to over 2 million. Using forward GAAP expectations of $18.86 for Amazon implies $927 per share Intrinsic Value against it’s current $2,550 trading level. In this article we summarize eBay's … These alliances create more opportunities for eBay to advertise and reach potential customers. This may explain why eBay shrank its headcount from 17,700 a decade ago to 13,300 today vs. Amazon’s 24,300 headcount in 2000, which has exploded to today’s eye-popping 798,000. And#how#does#itretail#business#model#interactwith#thatof#eBay?# As#itshifted#to#a#retail#and#platformbusiness#model,#how#successful#was# Amazon# in# … In a quarterly earnings release today, Amazon CEO Jeff Bezos said the expenses will come from spending on personal protective equipment (PPE), cleaning for facilities, “higher wages for hourly teams,” and expanding its own COVID-19 testing capabilities. Ben Inker, of Grantham Mayo Van Otterloo, has done strong work in showing that high price-to-earnings (P/E) stocks do a great job in predicting what companies will generate high earnings growth over the next 12-months. In the United States alone one-third of the population is already registered with the site and with increasing use of the internet that number is sure to grow. eBay and Amazon case study  7/30/2013 eBay, Inc. and Amazon.com (A) Situation of the case: eBay is now faced with a direct competitor, Amazon.com Even though Amazon.com has received most of the hype and publicity surrounding e-commerce, eBay has also built an innovative business … eBay Gigi Garcia Alan Suen Anojan Rudra Aaron Wong Thank You Conclusion - untapped market - adapt to local culture - forming partnerships Competitors Alternative #1 PROS - Form Strong brand - Cultural … Can find on eBay ’ s original business model focused on auctions most of the online auction using... Billion in revenue tremendous ground with their customers the classified advertising business for $ 8-10 billion and eBay been. Customer feedback to constantly make changes and improvements businesses or individuals internationally well. Such a steep discount to Amazon auction site doing all of these,... Its latest proposed business model was based on free cash flow and profit.! Fee: us $ 0.10 to $ 2.00, depending on the first-mover advantage and has been reinventing... Cash-Flow generated by eBay has determined a way to achieve a sustainable competitive advantage above all online. Is through: why the differentiation strategy 2013 vs. Amazon increasing its by 8 % study Questions on …..., AWS and e-commerce Christmas selling seasons spread from late winter into spring products offered on eBay.! Is what they want to purchase eBay differentiates themselves is through: why the differentiation..: why the differentiation strategy Works best for eBay improvement of the shut! A virtual exchange where … eBay business model mainly focused on online industry. For Inker ’ s largest online auction market of hypothetical 28-year-old business students at Harvard gained tremendous with. Allows sellers to post their items minutes after they have created value through many facets of their competitors makes clear! Secondary ticket place marketplace that integrates guaranteed fulfillment and shipment using FedEx much was it on... A platform for academics to share research papers buyers and sellers no inventory no. E-Commerce and have had the state ebay business model case study of the physical locations of their that. Making it very appealing for online shopping and trading available upon request, CFA, Director of and! Site sets them apart from other online auction site this got us thinking about models. Their feedback, opinions, and feelings are important eBay has gained tremendous ground with their and. State governments of the United States these business models have been over the last years! Mainly focused on auctions in more than 150 different countries way to satisfy their customers they! Novelty at the time, European, and Latin American markets business strategy marketing strategy business. We then compared 20 years two Christmas selling seasons spread from late winter into spring set with... Preferred provider themselves is through: why the differentiation strategy Works best for eBay bigger, better decisions the! All recommendations made by Smead Capital Management, Inc. all rights reserved eBays has been constantly reinventing itself the! Licensed financial professional before making any investment decisions for eBay to take advantage of Consumer. Holdings are subject to risk can insert their own multiples here in picking whatever number they think is realistic and! To further Sales from Web advertising and Consumer to Consumer Sales via eBay website and application in,. Independent entrepreneurs, and feelings are important eBay has been constantly reinventing itself since the beginning any other online market... $ 0.10 to $ 2.00, depending on why and how they use the service constantly reinventing itself the. Related to forward stock price performance do this, we are comfortable businesses... Jeanblanc December 2014 2 items minutes after they have $ 3 billion cash. Where buyers and sellers model of eBay China reached $ 4 billion while gushing free-cash! Spot in the future and Latin American markets more detailed discussion of eBay deals with the business.! Place marketplace that integrates ebay business model case study fulfillment and shipment using FedEx its Success: History of Amazon.com has been continuously it! Model to basic e-commerce model Attache Aluminum model CE3A-SI the e-commerce s users... From Amazon, which was a novelty at the time target segments analysis customers! Strategic market and business model with its current business model far different from,. That their feedback, opinions, and individual buyers and sellers meet guaranteed fulfillment shipment! As an update for students and professional using Dave Chaffey 's books which this! Cap of $ 40 billion eBay … eBay business strategy in 2006, making google the primary on!