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Kingsley Alli

on 11 December 2013

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Transcript of EBAY


Founder and CEO
Pierre Omidyar
EBay Infrastructure
Buyers and sellers are brought together in a manner where sellers are permitted to list items for sale, buyers bid on items of interest and all eBay users browse through listed items in a fully automated way.

eBay notifies the buyer and seller via e-mail at the end of the seller`s auction if a bid exceeds the seller`s minimum price, and the seller and buyer finish the transaction independently of eBay

The binding contract of the auction is between the winning bidder and the seller only.
Business Infrastructure Weaknesses
High fees

No further growth strategy

Innovative Development

The need to service more countries

Growth Possibilities
Growing number of mobile shoppers
Becoming a in store retailer
Increase services and product portfolio
Further Company acquisitions
Increase eBay availability to service more countries around the world

EBay is a company that has strong assets to the foundation of its company that makes it easy to see how their business has thrived for a extended period of time. Its competitive advantages in the market has done a lot in solidifying the company as one of the worlds a top online retail providers and arguably the most finically successful in the history of the industry.

With that said with emerging top companies such as Amazon, and up incoming businesses like pennyauction.com, innovation and development for this company is as imperative as ever. Time will tell whether or not EBay will be able to hold its ground in their marketplace, but one thing is for sure their effectiveness in the various areas discussed regarding Management Information systems, is likely to play a large role.

Many feel as if Ebay started over night...

eBay is an international online auction marketplace with a global customer base of 233 million.

eBay was founded by a French born Iranian computer programmer named Pierre Omidyar`s San Jose living room back in September 1995

Omidyar first started eBay on his personal website, that he named, “AuctionWeb” under his consulting firm called “Echo Bay Technology Group” In fact he initially desired for the business to be called what is called the domain ( Which is a IP address that is converted into a recognizable identification label or name)

From the very start Omidyar intended to make this grand idea as a marketplace for the sale of goods and services for individuals.

Josee Ahouandjinou
Barbara Ojo
and Kingsley Alli
Today we will find thats not truly the case, and discover out much more about how Ebay came about.
In particualr today we will be analyzing EBay: and How MIS is Incorporated in its Business Development & Evolution
In particular we will be analyzing EBay: How MIS is Incorporated in its Business Development & Evolution
Revenue Infrastructure
eBay generates revenue by way of various fees and commissions.

eBay charges an insertion fee based on the opening price of the merchandise.

Sellers paid between $0.30 and $3.30 per product listed on eBay`s site

Other fees were charged if a seller wanted to promote their own auction

eBay charged fellow companies $9.95 per month to have what it called a `storefront`

eBay is now a multibillion dollar business operating in 150 countries and has now become apart of the Fortune 500 Company. (A list created by Forbes, of the 500 most profitable companies in the world)


Business Infrastructure Strengths
Strong ebusiness model (no Top elite business as direct competition within market)

Economies of scale

Payment system

Brand reputation

Business Model

eBay has built an online person-to-person/customer-to-customer trading Internet business community, using the World Wide Web to facilitate seller-buyer auction transactions .

eBay has both streamlined and globalized traditional person-to-person trading.

It has now become the world’s largest online market place.

Business Strategies
eBay’s early and overall massive developing success is said to have been mapped out by its first hired president Jeffery Skoll.

eBay had to define the business they would be competing in, how they would compete in those specific businesses and define the way to deliver a successful service to their customers.

It revolutionized the Auction industry through Operating a multi-business model platform: Customer to Customer (C2C), Business to Customer (B2C), & Business to Business (B2B)

Uses a process of Disintermediation, by selling directly to customers in many transactions

Business Strategy Cont’d
Corporate level strategy: eBay strategy was to become a diversified business, they not only want a diverse product but they also wanted their customer base and global reach.

Business level strategy: eBay competes online auction industry by using a broad differentiation strategy, set their site apart that has lead customer to prefer their site over their online auctioneers and retailers.

EBay's broad differentiation strategy
1. Variety of products offered
2. The eBay community
3. The eBay wed site
4. The eBay brand name
5. eBay ‘s Global reach

eBay Business Intelligence Challenges and Opportunities
eBay has an epitome business intelligence, big data and enterprising data warehousing for 12 years

They have the world’s largest enterprise data warehouse, world’s third-largest Hardtop user.

eBay has keyword data mart that manage paid search, track 170 million keyword, figure out how to bid at google others to ensure that they hit the top five ranking.

eBay analytics-driven search leads directly and measurably to revenue, with creative engineering they were able houses petabytes from every day data.

We work with analytics, closing the gap between enterprise date warehouse to allow the speed of the site to operate.

eBay also collaborated with vendor on product development to improve performance and cost efficiencies.

Competitive Environment
eBay has to compete with order sites for customers in the United States, which can pose a threat to their continued rapid growth by running out of customers to joins theirs site. This is why establishing international markets is very crucial.

Increasing number of online trading sites: eBay many competitors are Amazon, uBid, and ePier.

Rapid Growth of Amazon.com: they are largest competitor of eBay and had the potential to take over the largest market share I the online auction industry.

Increasing number of online store: store such as target and JC penny has their own site were customers can shop. The poses a large threat to eBay because they are now competing with online auction sites but also online retailers.

Competitive Advantages
eBay has a strong competitive advantage (C.A) through its auction style foundation. It can sell products at any given price depending on the auction sale price. Gives the possibility of huge savings.

Through the capitalization of this competitive advantage eBay gained first- mover status in its marketplace. (Which occurs when a company can significantly increase its own market value by being the first to introduce a C.A)

Business Strategies: Staying Competitive
EBay has acquired many companies in order to maintain its strong competitive edge

Purchased Paypal for easy online payments

Shopping.com: product and price comparison

Rent.com: joins landlords & tenants

Fraud Science: detecting fraudulent activities

Half.com: used books, CDs, DVDs company

Large shares in Craigslist, Skype and others

Staying Competitive cont’d
EBay has also forged many company beneficial associations with other top businesses, well over 250, such as:

Fedex: quick & easy shipments to customers

Google as primary advertiser on eBay sites

My-Space to promote Skype

Northwest & Southwest Airlines and may more

Business Infastructure Threats
Online security

Regional low cost online retailers

Increasing competition from Amazon, overstock.com, penny auction sites.

Exchange rates

Buyer and Seller fraud

Customer Relations
EBay uses a Wide Area Network system to conduct its daily business processes to reach its wide customer base

Uses a Unified Communication platform to easy and efficient customers access

Uses a User Contributed Content (Reputation System) platform for customers feedback

Created a Scalable enterprise system for easy upgrade and expansion as customer base grew

EBay Data Information and Databases
eBay manages their data information with resource description framework and web ontology language with two semantic web technologies to store and query relationship between software and hardware in its networks.

eBay is developing a common modeling language to unify Information Technology Infrastructure Library (ITL) and Distributed Management Task Force (DMTF) that can simplify distributed management.

eBay expound and monitor its systems, adding to the entire auction platform 16,000 application for more than 8,000 systems to dynamically shift system resources to meet business requirements to be ahead of competitors.

eBay consideration to keep performance up, big date and minimize the number calls sent between databases they built six data centers located in the western United States to this problem.

The End
Overview Of Ebay
Full transcript