Preview

Ebay Company Analysis

Best Essays
Open Document
Open Document
4028 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ebay Company Analysis
INTRODUCTION eBay Incorporated, a US company headquartered in San Jose, California, provides online marketplaces for the sale of goods and services, online payments services, and online communication offerings to individuals and business in the United States and internationally. With more than 90 million active users globally, their collective impact on e-commerce is staggering: In 2009, the total worth of goods sold on eBay was $60 billion — $2,000 every second. The business strategy of eBay is exemplified in the company’s mission statement, “eBay’s mission is to provide a global trading platform where practically anyone can trade practically anything”.
In the following report, I will analysis eBay’s business including their financial statement, trends in the company’s financial health over recent years and expected potential trends into the future. In addition, I will compare eBay with competitors and analysis the industry sector. Finally, I will make my recommendation and conclusion regarding investment in eBay’s stock or bonds.
BUSINESS AND FINANCIALS eBay is an auction marketplace based online company and a consumer-to-consumer (C2C) company. Buyers and sellers are brought together in a manner where sellers are permitted to list items for sale, buyers to bid on items of interest and all eBay users to browse through listed items in a fully automated way. The items are arranged by topics, where each type of auction has its own category. eBay notifies the buyer and seller via e-mail at the end of the auction if a bid exceeds the seller's minimum price, and the seller and buyer finish the transaction independently of eBay.
Since eBay went live their online auction services, their financial success has been witnessed with an increase from net income $9.5 million in 1999 to &2,389.0 million in 2009. eBay’s core business model for generating operating income is conceptually simple. eBay’s main source of revenues are from listing, feature, advertising, as



References: eBay, Inc. (2011). Annual Income Statements 1999-2010. Retrieved Jan 30, 2011 from eBay website. <http://investor.ebayinc.com/annuals.cfm> Eghoff, Peter, and Lucas Mabey. "EBay Analysis." Http://www.stjohns.edu. Web. <http://www.stjohns.edu/media/3/a886bbb6be0e401bbf91c21e014f5356.pdf>. "Growth, Profitability, and Financial Ratios for EBay Inc. and Amazon.com Inc." Financials.morningstar.com. Web. 21 Apr. 2011. <http://financials.morningstar.com/ratios/r.html?t=EBAY>. Kevin Dickson, Siavash Nourozi , Hung Li. "Strategic Analysis & Recommendation: eBay." Pacific Lutheran University. Web. < www.plu.edu/~nourozst/doc/ebay.doc>. "EBay Inc. Buy/Hold/Sell Analysis." Forbes.com. Web. <http://finapps.forbes.com/finapps/BuyHoldSellAnalysis.do?tkr=EBAY>. "Investing in Stock, Stocks Buy or Sell, Hot Stock Picks, Stocks Trading:eBay Inc. (EBAY)."AskStockGuru.com. Web. Apr. 2011. <http://askstockguru.com/cgi-bin/s?s=EBAY>. Yahoo Finance, last accessed April 20, 2011. <http://finance.yahoo.com/q?s=EBAY>

You May Also Find These Documents Helpful

  • Powerful Essays

    EBay Inc. is an American multinational corporation and e-commerce company, providing consumer-to-consumer and business-to-business sales services via the internet. EBay is an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and series worldwide. In addition to its auction-style sales, the website has since expanded to include ‘Buy-It-Now’ shopping.…

    • 3494 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    ebay is basically a wholesaler who sells merchandise at the lowest possible price usually to retailers [amazon} who will resell the goods to consumers.…

    • 1528 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Echo Bay Technologies (Ebay) is currently one of the leading trading companies in the world. It has international presence in most parts of the world including the United States, the United Kingdom, Japan, Korea, Canada and Latin America’s Brazil. It was established in 1996 to facilitate the open market place ideologies, i.e. providing a level ground for its members to compare, discuss and trade information technology items and other commodities. Just like any other organization, the firm intends to continually grow on a global basis. In order to achieve this, the firm has embarked on an intensive global acquisition program. Presently, eBay’s corporate image and the 90 percent market share is attributed to several factors such as adoption Ibazar, a form of online trade and other types of E-businesses like internet based auctions and trade fairs.…

    • 2427 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    The purpose of this essay is to perform financial statement analysis on Amazon.com, Inc. (NASDAQ: AMZN ). We start with an introduction of Amazon and its industry. We then evaluate the company’s financial position, liquidity, operating capability and financial flexibility using different ratios. To evaluate the financial performance of Amazon.com, Inc we disclose recurring NICO and do full ROE disaggregation.…

    • 1718 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    In this report, we analyze the financial position of Ebay media ( Ebay INC) based on ratio analysis with the data from the balance sheet, income statements, and cash-flow statements.…

    • 3940 Words
    • 16 Pages
    Good Essays
  • Powerful Essays

    J.Gopalkrishnan* V.K Gupta** Abstract eBay, Inc. is the largest and most popular marketplace on the Internet, allowing members to buy and sell almost anything. Launched in 1995, about 147 million people now use eBay. An estimated 430,000 people in the United States make all or most of their living by selling on eBay. eBay’s online payment service, called PayPal, enables transactions nearly anywhere in the world. eBay proclaims “trust” between buyers and sellers as the key to the success of the marketplace. eBay is the “The world’s Online Marketplace”, which is its positioning statement, and it means many things about the company’s identity. It enables trade on local, national and international basis, with a diverse and passionate community of individuals and small businesses. eBay offers an online platform where millions of items are traded each day. The objective at eBay was to “to develop the work ethic and culture of eBay as a fun, open and trusting environment and to keep the organization focused on the big picture objectives and key priorities. The company market capitalization had surpassed that of even Amazon.com, making it the “world’s most valuable Internet retailer”. Pierre Omidyar, founder, is focused to achieve excellence in strategic management for improving the company’s strategy, sustaining the company’s growth and business performance, and potentially expanding from online auctions into general “etailing”, and to become “the world’s largest online mall”. This research paper intends to study the click and click business model of eBay, whose competitive advantage lies in its pure play strategy, a breakthrough from the traditional brick and mortar model, which leads to sustainable growth and a competitive edge over the other retailers. Keywords: Online marketplace, etailing, work ethics, online auctions/platform/mall Introduction: eBay establishes itself as the “The world’s Online…

    • 3985 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Ebay Case Analysis

    • 9313 Words
    • 38 Pages

    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…

    • 9313 Words
    • 38 Pages
    Powerful Essays
  • Powerful Essays

    Electronic commerce commonly written as e-commerce,is the trading or facilitation of trading in products or services using computer networks, such as the internet. Electronic commerce draws on technologies such as mobile commerce ,electronic funds transfer,supply chain management,internet marketing,online transaction processing,electronic data interchange(EDI),inventory management systems ,and automated data collection systems.Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction’s life cycle,although it may also use other technologies such as e-mail.…

    • 2354 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Strategy Analysis of Ebay

    • 2700 Words
    • 11 Pages

    CASE STUDY – EXECUTIVE SUMMARY THE CHALLENGES FACING EBAY IN 2008: TIME FOR A CHANGE IN STRATEGY?…

    • 2700 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Swot Analysis Ebay Asia

    • 916 Words
    • 4 Pages

    The founder of the online auction site “eBay” is a computer programmer Pierre Omidyar in San Jose, California, established on September 3, 1995. The primary function of eBay is online auctions and uses to reach a wide range of individuals all over the world. The website took off quit quickly so Omidyar hired Jeffery Skolls as president to handle the day to day operations. The former president of eBay’s Marketplaces, John Donahoe is the current president and CEO. Donahoe joined the company in 2005 and managed to double the profits and revenues for his unit. The company is posting a net income of $1.78 billion and revenue of $8.54 billion for 2008, which is up from the posting of 2007 that are a net income of $348 million and revenue of $7.6 billion (Dess, 2010). “Since its beginning in 1995, eBay has enjoyed strong revenue growth and was a dominate player in the online auction industry (Dess, 2010).”…

    • 916 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Case Study - Ebay 2000

    • 794 Words
    • 6 Pages

    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.…

    • 794 Words
    • 6 Pages
    Good Essays
  • Better Essays

    ebay

    • 1293 Words
    • 15 Pages

    eBay’s mission is to pioneer new communities around the world built on commerce, sustained by trust, and inspired by opportunity.…

    • 1293 Words
    • 15 Pages
    Better Essays
  • Best Essays

    Ebays Blobal Expansion

    • 2700 Words
    • 11 Pages

    The project is divided into two main parts. The first part discusses advantages and disadvantages eBay’s methods of entering new international market by acquisition opposed to “green field investment”. The second part assesses eBay’s playbook strategy.…

    • 2700 Words
    • 11 Pages
    Best Essays
  • Better Essays

    Can Ebay Continue Growing?

    • 1777 Words
    • 8 Pages

    EBay is very successful. According to the case, the company has been profitable and had attracted more than 200 million users by 2006. It has operations in 32 countries. In 2005, eBay users listed 1.8 billion items in auctions. This caused about $46 billion dollars exchanging hands. One of the most successful parts of the company is that it is fully automated. This significantly reduces costs to eBay, keeping net income high.…

    • 1777 Words
    • 8 Pages
    Better Essays
  • Good Essays

    The company exploits the benefits of Customer Relationship Management (CRM). Buyers and sellers register with the company and data is collected by eBay on individuals. This is the Business-to- Consumer (B2C) side of the business. However the strong customer relationships are founded on a Consumer-to-Consumer (C2C) business model, where strong interrelationships occurs, for example where buyers and sellers leave feedback for each other, and whereby awards are given to the most genuine of users of the service. A testament to the strength of the company can be gleaned from the fact that the term 'eBay' has become a generic term for online auctions. Today it is common to hear that someone is 'ebaying' or is an 'eBayer,' or that someone is going 'to eBay.…

    • 763 Words
    • 4 Pages
    Good Essays

Related Topics