Institute of Business & Management

University of Engineering and Technology Lahore

Group Members

M. Ali RazaKamil FarooqFatima Akram

Group # 2

Case Study

Case Overview•Introduction

History

•eBay work style

eBay & Wal-Mart

•New Recruitment

eBay failure in Japan

•eBay connecting in China

Head quarter in San Jose California US

Consumer to Consumer Corporation

Largest online Market place

PayPal [Payments online]

Auction style listing

History• Founder Pierre Omidyar 1995

•Pez dispenser

•Meg Whitman [CEO] 1997

•1997 – 1 millionth item sold

•1998 – eBay goes public

•2002 – PayPal joins team

eBay work style

• Old marketing system to new one

• Auction of product

• Insertion fee for listing item, also upon sale

• Modern way of product delivery

• Gross value per auction in 2002 was $22.50

eBay Wal-Mart

$749 million inrevenue from sales fees

€182 billion sales in 2001

$9.3 billion ingoods sold through 170 million

3,000 stores

No stores ware houses 1.3 million workers

3000 employees

Net profit of $138 million in 2001• eBay• &

• Wal-Mart

New Recruitment

• 1997 Meg Whitman new CEO worked for DISENY, Hasbro

• Helped the company to go public

• New marketing strategies

• 2002 PAYPAL joins eBay

• Skype in eBay

New Goals• Sales of $3 billion by 2005

• Entrance in new Countries to reach the target

• Entrance in Japan and China big economy hub

eBay Failure in Japan eBay Yahoo! [Japan}

Charged fee for each transaction No fee is charged for any transaction

Required Credit card No credit card is required { easy for Japanese }

low-key approach to promotion, Large no of buyers and sellers

Japanese reluctance tobuy used goods from strangers

Internet nicknames for their transactions

Failure of auction style listing Internet café withStarbucks.

eBay had only 3 per cent. Yahoo! had captured 95 per cent of the $1.6 billion onlinemarket

• eBay• &• Yahoo!

eBay connecting in China

• eBay purchased 33% of Chinese auction sites

• Two young entrepreneurs Shao Yibo and Tan Haiyin launched their sites

• Which by 2002 had 3.5 million registered users and50,000 items listed for sale.

Hurdles in China• Trade of practical items like apparel or cellular phones

• Chinese traders mostly sell within their own cities

• shipping an item is not easy or reliable

• Many Chinese still don’t feel comfortable doing business online

• To meat their goals they have to be successful in International market

• Specially have to be successful in China

• eBay is the world’s largest person-to-person trading community

Conclusion

Question’s for Discussion

Q What are the forces shaping the development of Internetbusinesses like eBay in the United States? How are theseforces similar or different in the EU and in other countries,such as Japan or China?

Time saving and easy to sell and buy

Removed the need of physical meeting between buyer and seller.

Created software's for transactions

Made shopping possible at home

Q How does eBay create value for the members of itscommunity?

They create value for their customer by following up their feedback and as the police member themselves, providing feed back to each other to identify the disreputable buyers and sellers.

Q What marketing recommendations would you make to eBayto help it be successful as it enters the Chinese market?

They should buy products according to the Chinese way of paying and provide them the facility of postal or courier system.