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Comparison of eBay and Alibaba.com

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Comparison of eBay and Alibaba.com

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Page 1: Comparison of eBay and Alibaba.com
Page 2: Comparison of eBay and Alibaba.com

I. EBay.comI. Intro, brief company profile, products & services, key

brandsII. Core Strategies, TOWS Matrix

II. Alibaba.comI. Intro and brief company profile, products & services,

key brands, II. Core Strategies, Porter’s five forces

III. Company ComparisonsI. Financial comparisons’ of the two companiesII. Which company we believe is the smarter investment

Page 3: Comparison of eBay and Alibaba.com

In 1995 Pierre Omidyar started auctionweb.com

In 1997 auction web was changed to eBay.com

Since then eBay has been devoted to online auctions

Pierre is ranked #40 on Forbes top 400 richest Americans, released September 30, 2009

Page 4: Comparison of eBay and Alibaba.com

eBay’s headquarters is located in San Jose, C.A.

Currently employees 16,200 people (an 8% employee increase in one year) in over 30 countries

John Donahoe was hired in January 2008, taking over Meg Whitman as CEO

Page 5: Comparison of eBay and Alibaba.com

The products and services that EBay provides is an online marketplace for the sale of goods and services.

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

Page 6: Comparison of eBay and Alibaba.com

The company has a number of subsidiary sites under its umbrella. EBay’s payment

platform Paypal.com was Bought by EBay in Oct. 2002 for $1.5B

EBay’s low cost connectivity communication platform Skype.com Bought by EBay in

October 2005 for $3B

Page 7: Comparison of eBay and Alibaba.com

The core strategy for world recognition for the company is their growth strategy

The company has numerous global acquisitions and joint ventures around the globe

In 2001 eBay entered an alliance with MercadoLibre in Latin America

2006 joint venture with Ruten. Taiwan's leading auction site

May 2007 eBay acquires Turkey’s leading online marketplace Gittigidiyor.com

Page 8: Comparison of eBay and Alibaba.com
Page 9: Comparison of eBay and Alibaba.com

It’s primary business is to serve the Chinese market with a directory of the Chinese manufacturers.

It’s purpose is to connect companies with suppliers and manufacturers throughout the world.

Alibaba specializes in trade between buyers and sellers.

Alibaba is a B2B e-commerce company founded in 1999 by Ma Yun.

Alibaba has more than 40 million users and 5 million virtual storefronts

It also reaches buyers and sellers in more than 240 countries around the world.

Page 10: Comparison of eBay and Alibaba.com

Alibaba like eBay, does not carry specific products, but a very different mix of items and brands.

Some of the products they offer include: Agriculture Automobiles Chemicals Construction & Real

Estate Energy Furniture Rubber and Plastic Shoes and Accessories Tools Toys and Hobbies

Page 11: Comparison of eBay and Alibaba.com

The Alibaba group consists of 5 e-commerce sub-companies: Alibaba.com - Publicly

traded company in business-to-business e-commerce marketplace

Taobao.com - online retail marketplace

Alipay - third-party online payment platform,

Alibaba Cloud Computing - advanced data-centric cloud computing service platform

China Yahoo! - a leading Chinese-language portal

Page 12: Comparison of eBay and Alibaba.com

Since September 2009, Alibaba.com had gained 45.276 million registered users, which adds up to be an increase of 27% since the previous yearOf these users, 10.48

million were from the international trade market and 35.8 million were from the Chinese trade market.

Page 13: Comparison of eBay and Alibaba.com

Growth strategies are the core of the organization:Acquiring of Yahoo!

ChinaStrategies to

expand global reachLowering of costs

for gold members to draw new members

Page 14: Comparison of eBay and Alibaba.com
Page 15: Comparison of eBay and Alibaba.com

Revenue USD: $432.6MGross Profit USD: $171.9MNet Income USD: $173.7MStock Price USD: $18.12

Page 16: Comparison of eBay and Alibaba.com

Both are world leaders Early and steady growth

for the past 10 years Similar mission:

To extend global reach Similar product lines

Different modes of entry: Alibaba.com acquired a

competing firm eBay started as a monopoly Alibaba has more focused

strategies eBay’s are more general

eBay, in 2008 has double the revenue, more than Alibaba

eBay has a great dedication to marketing that Alibaba has yet to achieve

Page 17: Comparison of eBay and Alibaba.com