Ebay Case Study
ASSIGNMENT NO 1
EBay Inc.
Strategic Management
Submitted to: MR. Asim
Submitted By: Faisal Javed
Registration Number: L1S13MBAM0123
Summary
August 2009 EBay Inc. formed a partnership with G.M Motors enabling GM Dealers in California to help consumer negotiate purchase of G.M cars on EBay online marketplace. In 2nd quarter of 2009 EBay profit fell 29% and revenue declined 4%. This loss is still better than analysts’ expectations. In same quarter EBay reported growth in both business segments PayPal and Skype. In same quarter EBay announce for the IPO’s of Skype in 2010. September 1995, Pierre Omidyar created an online auction in form sole proprietor business. Omidyar is a computer programmer who creates a code that enables and run EBay auction website from his home computer. In May 1996 EBay incorporated in California and become public on September 24, 1998. In 2008 EBAY 14% share of global e-commerce with 86.3 Million active users. EBay is virtual online business that offers sense of community to buyers and sellers that are sustained by communication and high transaction rates on wide offered of good & services. EBay provide faster, easier, safer online commerce experience. EBAY is supported by its proprietary SKYPE that allows free telephonic calls using a broad band Internet connection to any telephone. EBay success is sustained through communication and trust. EBay have three business segments which are 1) Marketplace 2) Payments 3) Communication. Marketplace generates revenues from listing and fees paid by sellers, payment segment revenues are generated through fees paid by merchants for payments processing through PayPal & Bill Me Later. Communication segment generates revenue from Skype either on a subscription basis or per minute basis for Skype out Minute. Additional revenues are from advertising and revenue sharing contracts with third parties that provide transactions services to EBAY and PayPal. In 2008 EBay.com generates $ 59.7 Billion
EBay Inc.
Strategic Management
Submitted to: MR. Asim
Submitted By: Faisal Javed
Registration Number: L1S13MBAM0123
Summary
August 2009 EBay Inc. formed a partnership with G.M Motors enabling GM Dealers in California to help consumer negotiate purchase of G.M cars on EBay online marketplace. In 2nd quarter of 2009 EBay profit fell 29% and revenue declined 4%. This loss is still better than analysts’ expectations. In same quarter EBay reported growth in both business segments PayPal and Skype. In same quarter EBay announce for the IPO’s of Skype in 2010. September 1995, Pierre Omidyar created an online auction in form sole proprietor business. Omidyar is a computer programmer who creates a code that enables and run EBay auction website from his home computer. In May 1996 EBay incorporated in California and become public on September 24, 1998. In 2008 EBAY 14% share of global e-commerce with 86.3 Million active users. EBay is virtual online business that offers sense of community to buyers and sellers that are sustained by communication and high transaction rates on wide offered of good & services. EBay provide faster, easier, safer online commerce experience. EBAY is supported by its proprietary SKYPE that allows free telephonic calls using a broad band Internet connection to any telephone. EBay success is sustained through communication and trust. EBay have three business segments which are 1) Marketplace 2) Payments 3) Communication. Marketplace generates revenues from listing and fees paid by sellers, payment segment revenues are generated through fees paid by merchants for payments processing through PayPal & Bill Me Later. Communication segment generates revenue from Skype either on a subscription basis or per minute basis for Skype out Minute. Additional revenues are from advertising and revenue sharing contracts with third parties that provide transactions services to EBAY and PayPal. In 2008 EBay.com generates $ 59.7 Billion