By: Dan McLindon Kyle McDaniel Jeremy Smiley Tom Anderson Ray Moorman eBay
Key Question for eBay How can eBay continue to grow as an online retailer?
Secondary Questions What are the values on which eBay was founded? Do eBay’s current actions and strategies align with their values? What has happened to the company culture at eBay? Does the eBay brand create a sense of trust, security, and community? Should John Donahoe be the CEO of eBay? How can eBay position itself for future success?
Industry Overview (Supply) Porter’s five forces: Threat of substitute products High Rivalry among existing competitors High Bargaining power of buyers High Bargaining power of suppliers Medium Threat of new entrants High
Internal Analysis – Core Values Conclusion: eBay’s recent changes to their fee structure and feedback forum go against the company’s core values.
Whitman vs. Donahoe Meg Whitman John Donahoe
Registered & Active eBay Users • Reg users continues to grow but Active users has flattened out
Core Business: Online Auctions • # of online Auctions declining during same time frame as users are increasing
Forrester Research: 2012 Prediction of Internet Sales • B2B predicted to be 10x larger than retail sales
Worldwide Internet Users in 2008 • 220m of NA was from US.
Recommendations 1. Fire John Donahoe, leverage strong board of directors to find a replacement that can lead eBay into the future. 2. Focus on restoring the eBay brand name. Make eBay.com a 100% auction site. Use Shopping.com and other possible acquisition targets to compete in traditional online retail space. 3. Revamp fee structure to be friendly to both small and large sellers. Tier the structure based on monthly or annual trade volumes.
Recommendations 4. Look into acquiring either or both Overstock.com and uBid.com