Oksana Troshchiev- Wissal Karoui- Cdric Jeanblanc

December 2014

Summary
1. About
2. Target segments analysis, customers
service strategy and standards
3.
4.

vs. Competitors
today

About

About
How much was it sold on eBay ?

1,1
2,5 million
4,9
140
million $$

About
Some facts about ecommerce and
eBay:
Global e-commerce
sales will hit close to
1 trillion $ this year
Asia holds the
largest number of
web purchases
E-retail is predicted
to account for 10% of
US retail sales by
2017, thats 370
billion $

Is a global online
marketplace where
practically anyone
can trade practically
anything
Has more than 152
million active users
An item is
purchased every 2
sec. using the eBay
app.

Popular items
on eBay sell
every
2 sec. a car
3 sec. hand-bag
5 sec. womens
clothing
9 sec. CD or
football shirt

About
Products &
Services

Target
Segments

Key figures

Competitors

Collectibles:
Antiques, Art,
Coins, Toys &
Dolls, Memorabilia
Motor Vehicles:
Cars, Boats, Parts
Electronics:
Cameras, Cell
phones & PDAs,
Computers
Entertainment:
Movies, Music &
Games, DVD, CD,
VHS, Event Tickets
Books
Clothing
Jewelry
Shoes
Accessories
Home
Improvement:
Dcor, Crafts,
Gardening

Primary target
markets are
Online
Auction &
Shopping

Total active users:

152 millions
in 39 countries

Amazon
Alibaba
Groupon
Le bon coin
Priceminist
er

Key segment
is Antiques &
Collectibles

+ 6 million new
items for sale each
day, spread in to
50,000 categories

And also
Motor lovers,
Art lovers

More than 300

million items for
sale

1,3 million people

living partially or
totally from eBay
sales

About

20042005
Acquisition and
Creation of:
Rent.com
Shopping.com
and Kijiji

2001
iBazar
Acquisition

1995
Created by
Pierre
Omidyar in
USA in
California

1999
International
Development
of the
Website

2002
PayPal
Acquisition

2010
eBay creates
an iPad App

2008
1st marketplace
creates a Mobile
App

Business Model

Target segments analysis, customers

service strategy and standards

eBay: Target Segments

Primary target markets are
Online Auction & Shopping communities
eBay has business strategies to target specific segments of each.
Key segment is : Antiques & Collectibles
Motor lovers: Using credibility of leading car collector Kruse Inc., eBay
expanded its categorical offerings with eBay Motors. eBay Motors
became one of its most successful target segments.

Art lovers: eBay also had a somewhat failed strategic partnership

targeting Art Collectors directly.

What is the eBay API?

The Application Programming Interface (API) is
the heart of the Developers Program
Normally, users buy and sell items using the eBay
online interface, interacting with eBay directly. But
with the eBay API, you communicate directly with the
eBay database in XML format. By using the API, your
application can provide a custom interface,
functionality and specialized operations.

Buyers:
Get the current list of eBay categories
View information about items listed on eBay
Display eBay listings on other sites
Leave feedback about other users at the conclusion of a
commerce transaction

Sellers:
Submit items for listing on eBay
Get high bidder information for items you are selling
Retrieve lists of items a particular user is currently selling
through eBay
Retrieve lists of items a particular user has bid on

vs. Competitors

Jeff Bezos

Turnover : 75 billions USD

Largest internet-based company
At first : online bookstore
Now : CD, MP3, downloads, videogames,
softwares, electronics, furnitures, jewelelry, food

Jack Ma

Turnover : 6.5 billions USD

Exponential growth
business-to-business

Hiroshi Mikitani

Turnover : 5.3 billions USD

Japan firm
Founded in 1997
In France : Price Minister
Operating : third party which connects
supply and demand

deal-of-the-day website
Turnover : 2.5 billions USD
Launched in november 2008
also called flash sales : single
product for sale for a period of 24
to 36 hours

Andrew Mason

120 millions USD

Created in 2006
French classified advertisements
website
First in France
The owner : Schibsted

Olivier Aizac

Revenue
80
70
60
50
40
30
20
10
0

today

Strategic position
Cross-channel Strategy

Create auser
better
customer
Improve
experience:
experience
1.To simplify and improve
1.Try
to
create
value
online buying experience
differentiation with
2.Tocompetitors
make online
shopping
faster,
easier
2.To increase buyer
and and
fun loyalty
satisfaction

Strategic position
Communication and media strategy

The last campaign tagline is :

anywhereyougo,anythingyousee,
youcanbeinspiredbythethings
aroundyouandthosethingscanbe
instantlyshoppableon

PESTEL ANALYSIS
Political
Economic
Social
Technological
Legal
Environment

Political
Globalization
able to break into a new market which previously closed
challenges from foreign competitors
High government investment on ICT infrastructure
faster, better and more reliable internet access user
Marketplace Fairness Act
US state sales tax
Increase the price of a product or service
people would probably stop buying
internet retail sales could decrease by up to 24% (Austan Goolsbee,
2000)
Government Intervention
Chinas internet regulators have made it difficult for foreigners to
participate fully, giving local Chinese e-retailers an advantage from the
offset (Dean, The Wall Street Journal, 2006)

Economic
Exchange rate
conduct significant business outside United

States but profitability is

dollar

reported in US

Global economic condition

weak economic condition would limit the

growth of revenue
change in consumer purchase pattern

Social
Lifestyle and attitudes change from a country to another
they have to set different target, product or consumer
categories
*eBayfailedtobreakintoChinamarket,
Increase in online social networking
people are rely on internet
can get everything easily from online shopping
an opportunity to increase market share

Technological
Growth of internet
Low barriers of entry
more competitors
growth of internet user will increase public online consumption
Rapid development of high-speed network service
Third party online payment system
PayPal
provide an easy and secure way to make and receive payment online
reduce the risks of transaction

Legal
Developed strategy have to comply with different
legal locally and internationally
The European Sales of Goods Act
Data protection act in UK
Federal Trade Commission in USA
EU Electronic Commerce Directive
The Electronic Signatures Law
Increase the use of e-commerce of both consumers
and business
ensure a certain level of security in online shopping
costs for online business

Environment

Global warming and pollution

awareness increase globally
more online shopping
have to be more green to attract
consumer
eg: eco-packaging, work environment

Strengths
Weaknesses
Opportunities
Threats

S
W
O
T

A firm known everywhere

Lots of counterfeiting

E-commerce traffic grows every year

Arrival of some serious competitors from

Asia : Alibaba and Rakuten

Thank You