Research Proposal on "Ebay Was Founded in 1995"

Research Proposal 5 pages (1481 words) Sources: 3 Style: MLA

[EXCERPT] . . . .

EBay was founded in 1995 as the very first auction website where the market determines the value of items that are sold (About eBay). Since this time, the company has become the world's largest online marketplace selling practically anything. Eighty-four users in 39 global markets conducted just over $60 billion worth of business in 2008 (About eBay; 2008 Annual Report). Since its initial public offering in 1998, the company has made two major acquisitions to stake leadership in online payments and communications (About eBay). Acquired by eBay in 2002, PayPal enables any individual or business with an email address to send and receive payments online. Acquired by eBay in 2005, Skype allows people everywhere to make unlimited voice and video calls online for free using its software.

External Environment

Opportunities

eBay has the opportunity to differentiate itself from competitors by creating a one-stop shop where customers can make purchases in a wide variety of ways -- from bidding in auctions to clicking on ads, scanning classifieds, or making outright purchases (Burrows, 2009).

In its bid for fixed-price online retailing, the company has the opportunity to focus on secondary-markets such as making it easier for consumers to hunt for last year's fashions, overstock supplies, and hard-to-find products such as collectibles (Burrows, 2009)

PayPal may represent a great spinoff opportunity if eBay decides the company is worth more on its own that as part of eBay (Buley, 2009). According to Buley, PayPal's revenues were up 25% to $2.4 billion in 2008 and the service routes nine percent of all global e-commerce (Buley, 2009).

Emerging markets such and China, India and Korea provide growth opportunities. eBay's recent stake in South Korea's Gmarket gives the company control of Korea's top two e-commerce vendors (Ihlwan, 2009), providing tremendous local access.

eBay's opportunities represent a renewed focus on its core marketplace businesses, paying close attention to fixed-price sales, market niches where there is limited competition, and emerging markets. PayPal is highly successful, but could perhaps be even more so as a spinoff which would also provide the added benefit of allowing eBay to concentrate on its marketplaces.

Threats

By far the greatest threat to eBay is that customers have begun shunning auctions for fixed-price sales (Burrows, 2009). Fixed-price electronic commerce is extraordinarily competitive, even in secondary markets, with the likes of Amazon.com, Buy.com, Smart Bargains, and Overstock.com as well as traditional brick-and-mortar retailers vying for online customers.

New startups such as Shopify are chasing eBay's traditional auction business by appealing to its customers who are upset over the company's listing fees and ratings polices.

In emerging Asian markets, eBay faces tremendous competition. In addition to local companies, Yahoo holds a 40% stake in the Alibaba Group, the parent of China's largest e-commerce company (Ihlwan, 2009).

Google Checkout has gained market share from PayPal. Of the alternative payment options on the Web, PayPal has a 25% market share while Google Checkout has 11% of the market (Reisinger, 2009).

eBay has a fine balancing act as to how it can expand into a crowded fixed-price market while still maintaining leadership in its auction business. The company has not done particularly well in Asian markets in the past, mostly due to its inability to understand and respond to cultural differences. While PayPal is a cash cow for eBay, vendors, especially Bill Me Later, are making inroads into the online payment market.

Internal Environment

Strengths

eBay is the leading global brand for online auctions with millions of users who buy and sell almost everything. The company's brand is so strong that its name is synonymous with the online auction industry

The company has a stellar balance sheet with more than $3 billion in cash as of December 31, 2008 (Burrows, 2009).

eBay is a successfully global corporation. In addition to its original U.S. website, eBay has established localized websites in more than three dozen other countries (About eBay).

In addition to gaining revenues through listing and selling fees and through advertising, eBay also sees gains from its online payments division, composed of PayPal and Bill Me Later, and other e-commerce platforms, including StubHub and Half.com.

As a well-branded, cash-rich company that is successful throughout the globe, eBay is strong enough to take on new opportunities. Further, the company has a diversified revenue stream so that it can better weather the recessionary storm than many other electronic commerce companies.

Weaknesses

eBay's online marketplaces are shrinking. Marketplaces business posted a 16% decline… READ MORE

How to Reference "Ebay Was Founded in 1995" Research Proposal in a Bibliography

Related Research Proposals:

Ebay - Study Case the Internet Auction Term Paper

Ebay - STUDY CASE

The internet auction has been expanding rapidly over the last years. It was directly influence by of internet shopping phenomenon, which came as a consequence of… read more

Term Paper 8 pages (2024 words) Sources: 1 Topic: Business / Corporations / E-commerce

---

Ebay Has Revolutionized Shopping Online Term Paper

Ebay has revolutionized shopping online as we know it. An analysis of its impact on our society reveals its advantages and disadvantages. The large numbers of its competitors, which have… read more

Term Paper 6 pages (1867 words) Sources: 5 Topic: Business / Corporations / E-commerce

---

Ebay Commerce Is One of the Domains Term Paper

Ebay

Commerce is one of the domains that have discovered from the beginning the potential of it, by exploiting its innovations and advantages. The past years have favored globalization, communications'… read more

Term Paper 2 pages (633 words) Sources: 2 Style: APA Topic: Business / Corporations / E-commerce

---

Strategic Audit Essay

EBay: Mission, Vision, Strengths and Weaknesses

Of all the companies recently generated by the Internet boom, eBay can be described as either the most innovative -- or the most old-fashioned.… read more

Essay 5 pages (1643 words) Sources: 5 Style: APA Topic: Business / Corporations / E-commerce

---

Web Auction Site Research Proposal

Online Auction Sites Including EBay

Assessing Web Auction Sites

The essences of online auctions are their ability to serve as an open, trusted trading exchange for buyers and sellers of… read more

Research Proposal 1 pages (462 words) Sources: 3 Topic: Economics / Finance / Banking

---

View 100+ more related papers  >>