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Ebay Resources and Capabilities

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on 25 January 2014

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Transcript of Ebay Resources and Capabilities

Ebay's Resources and Capabilities
Ebay is now a leading market player within global trade.
Currently more than 100 million people use eBay globally,
In US Internet users spend more time on eBay than any other internet site.
Virtually anything can be traded on eBay and on an average day millions of items are listed as either an auction or a fixed-priced offer.
eBay also offers the payment service PayPal to ensure quick and safe money transfers. Other eBaysites include half.com, Kijiji, ProStores, Rent.com, and Shopping.com. At present eBay employs 8,100 people.
eBay's mission is to provide a global trading platform where
practically anyone can trade practically anything.

The company’s key products and services include the following:
• Online services for the sale of goods and services
• Online communication services
• Online payment and transactional credit services
• Online classifieds
• Advertising
The key brands that the company has and operates include:

• EBay's fixed price media marketplace Half.com
• EBay’s payment solution Paypal.com
• EBay’s low cost connectivity communication platform Skype.com
• EBay’s credit at point of sale payment solution Billmelater.com
• EBay's marketplace to buy and sell tickets for events Stubhub.com
• EBay's online shopping comparison website Shopping.com
• EBay's apartment listing service platform Rent.com
• EBay’s Swedish online auctioneer Tradera.com
• EBay’s green marketplace Worldofgood.com
Ebay Sales have increased due to the strengths of past acquisitions and low costs have returned high profits back into free cash flow
Cash is currently listed at $3.8 billion and with borrowing power has increased by $1B to about $2B
It has permitted leverage of 3x EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)
The stock market seeing eBay as a strong company, their current market capitalization is $15.70B
A strong executive team has been built in order to provide management among a variety of business
Three operating segments have been designed within the company to handle the commonly used marketplaces, along with the additions of payments and communications
Marketplaces are made up through the use of eBay auction listings, fixed price listings, as well as the additions of their other online platforms, Half.com, Rent.com, Shopping.com and StubHub
The payments segment is made up of PayPal, and communications consists of the acquired Skype VoIP.
EBay's facilities located in 25 different countries
Including administrative offices, data centers, product development offices and customer service offices
The human capital currently held across all eBay locations is vast and increasing with its growth
Ebay has approximately 15,500 employee, approximately 9,500 of whom were located in the U.S.
eBay has incorporated a large amount of technology into their company in order to make everything run efficiently including:
The original auction-board coding put into place to initial start the company
Advanced software tools and services to support their core online platform (Ebay.com, Half.com, Rent.com)
Software and programming of eBay are supported by Sun Technology
Another factor is improvements to the eBay.com homepage, the site’s search functionality, the ease with which sellers can list items, visual search, and the expansion of Ebay customer support infrastructure.
Outside of the use of acquisitions in order to support growth for eBay, innovation is constantly being created
hiring and use of software and computer engineers in order to develop new coding and software systems
introduction of the “Best Match” searching tool (using algorithm in order to sort top searches and also the eBay to Go tool which allows the embedding of item listings into other internet websites)
Having the capacity to innovate is also used in modifying the payment process to enhance speed, reliability and customer satisfaction.
eBay Inc. became the first internet company to be awarded the National Medal of Technology and Innovation.
The eBay name has become a household reference when thinking of e-commerce catalogers
They have reliability, reputation with suppliers
Efficient, supportive and reliable reference in customer mind
eBay’s purpose is to create, maintain and expand the functionality, safety, ease-of-use and reliability of their online commerce platforms while supporting the growth and success of their community of users
Fortune has listed eBay as the 84th best company to work for in its 2009.

ebay is the leading power of online auction and customer -to customer trading in the world. They have many competencies, core competencies and distinctive competencies that set them apart from their competitors. Their alliances, international dominance, recognized brand are some of the main reason why ebay is company that has got a lot of competitive advantages
Business Model
Recognized Brand
A recognizable brand name makes it another competitive advantages of ebay. ebay has use a unique color and writing to show its brand name. They also use internet and TV to get publicity on different media avenues. Amazon does not as much as face value as ebay. Their name is not distinctive to the customers like ebay.
Over 250 allinaces
ebay holds alliances with some of the largest companies in the world. They include UPS, America online, IBM, paypal and walt disney. These alliances create more opportunities for ebay to advertise and reach potential customers. ebay has also made alliances with companies to create customer satisfaction.Tradesafe and Iescrow have both partnered with ebay to make sure all the customers get what they pay for.
Global Reach
The global reach maintained by ebay is the one and only unique in ecommerce. Although Amazon.com is in close second to ebay, customer's obviously prefer ebay's global ability. They have the capability to reach to the people to any part of the world.
Sense of community
caring about the customers and making sure they are happy is the key success for any business. ebay makes their community to priority at all times. ebay is always coming with a new ideas to come with community. They have come up with feedback forum for customers to provide comments about trading partners. 2 new features has also been added to the members that is My ebay and About me.
over 27,000 different catagories
The wide variety of product offered on ebay gives them a competitive advantage above all other online auction sites. They are like wal-mart of the internet. They say anything you want you can find on ebay.
ebay has changed the micro auction from consumers to consumers. It is the fastest growing auction site with 90% market share. The success factor for ebay is flexibility and ease with consumers, very efficient cost, reliable payment system makes it no 1 in auction site. Simply ebay is a place to buy, place to sell, place to shop, place to collect, a website, free for buyers and inexpensive for sellers
Capabilities are the combination of resources that have allowed Ebay to evolve and gain a long term survival also competitive advantage since 1995.

· World’s largest buying marketplace

· Brand reputation

· Financial security for customers and clients

· Customer base

· Paypal

· Ebay return process – Customer’s peace of mind

· Feedback process
· Amazon was launched in the same year as Ebay, offering quite similar types of services.
Ebay only charges a customer once their product is sold.

· Amazon only supports Amazon payment whereas paypal could be used everywhere online.

· Ebay encourages customer engagement

· Ebay customers could decide their own shipping costs
Competitive Advantages
Competitive advantages
ebay only acts as a middleman between buyer and sellers, who bid and sell items in ebay's marketplace. Being a pioneer in online auction and no strong competition from another it makes clearly a strength to the ebay. Thus companys business model is a competitive advantages over such giant retaillers such as Amazon. Its social strategy or model for instance using facebook and twitter to publicise its things makes it the strongest advantges.
Group O
Nguyen Ngoc Linh 2856902
Sarah Nadeem 2755060
Xuefenghuang 2860613
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