Company profile

Name: Pierre Omidyar

Title: Founder and Chairman
eBay responsibilities: Oversees strategic direction and growth, model
and site development, and community advocacy
Name: eg !hitman
Title: President and C"O
eBay responsibilities: Build a successful
business while delivering on customer needs
and e#pectations
"ducation: $B$%$, &arvard Business 'chool$
B$%$, "conomics, Princeton (niversity
Company profile
Foundation : September 1995
)ocation : San Hose , Ca USA
*egistered (sers : 29.7 M ( Nov 2001)
"mployee : 1,927 (Jne 2001 )
&istory
Sep 1995 : e!a" #as $on%e% &n '&erre
(m&%"ar)s San Jose
*&v&n+ ,oom
-eb 199. : Me+ /0&tman be1ame C2(
Sep 199. : Nas%a3 ( 4 1. per Sto15 )
6e1 199. : 2.2M sers , 77.7M 8ota* &tems
6e1 1999 : 10.0M sers, 129.9 M tota* &tems
6e1 2000 : 22.0M sers, 295M &tems
Nov 2001 : 29.7M sers
17 :*oba* S&tes (;n1*%&n+ <orea, Japan,
-ran1e ,:erman)
+ntroduction
What is eBay?
%n introduction to the !orld,s Online ar-etplace
A place to buy:
2!a" &s a p*a1e to b". :et near*" an"t0&n+ "o nee% or #ant at pr&1es better t0an
"o 1an $&n% &n tra%&t&ona* br&15=an%=mortar or even on*&ne stores
% place to sell:
>o 1an se** an" t0&n+ b" e!a". An"t0&n+ "o *&st on e!a" will sell &$ "o?re
$*e@&b*e eno+0 abot t0e pr&1e. 2!a")s +*oba* rea10 1an even move nsa* &tems t0at
aren?t &n %eman% &n "or o#n ne&+0bor0oo%, trn&n+ paper#e&+0ts &nto 1as0.
% place to shop:
!e1ase o$ t0e &mmense var&et" o$ t0&n+s t0at 1an be $on% $or sa*e on e!a", man"
members 0ave %&s1overe% t0at e!a" &s one o$ t0e best p*a1es &n t0e #or*% to #&n%o#
or 1ompar&son s0op. ;tems *&st&n+ o$ten &n1*%e p0otos, %eta&*e% %es1r&pt&ons, an%
o#ner e@per&en1es. !e1ase "o 1an see *ots o$ t0e same &tem s&%e=b"=s&%e &n var&os
1on%&t&ons an% 5no# #0at ea10 one so*% or &s se**&n+ $or, e!a" +&ves "o &ns&+0t &nto
t0e rea* mar5et va*e or Astreet va*eA o$ most t"pes o$ +oo%s aron% t0e #or*%.
% place to collect:
2!a" &s t0e #or*%?s *ar+est mar5etp*a1e $or rare, %&s1ont&ne%, 1o**e1t&b*e, or 0ar%=to=
$&n% &tems, no matter #0at t0e t"pe or pr&1e. /0et0er "o?re *oo5&n+ $or trn=o$=t0e=
1entr" bo@ 1ameras, 0an%=ma%e B&1tor&an %o&*&es, Sov&et arm" serv&1e me%a*s, or
19.0s v&nta+e ar1a%e +ames, e!a" #&** +&ve "o a better se*e1t&on t0an Cst abot
an"one e*se an"#0ere
% website:
80ere &s no p0"s&1a* e!a" store operate% $rom severa* 1&t&es, e!a"?s serv&1e e@&sts
ent&re*" on*&ne, an% a** aspe1ts o$ bs&ness ot0er t0an t0e %e*&ver" o$ bo+0t an% so*%
&tems t0emse*ves are t"p&1a**" 0an%*e% t0ro+0 t0e e!a" #ebs&te.
Free for buyers and ine#pensive for sellers:
;t 1osts not0&n+ to be1ome an e!a" member, to s0op $or +oo%s, or to pr10ase
+oo%s $rom e!a" se**ers. Se**ers pa" a m&n&ma* amont to *&st &tems $or sa*e, an% anot0er
sma** per1enta+e o$ t0e va*e #0en an &tem &s so*%. 80ere are no mont0*" $ees or ot0er
0&%%en 1osts.
.reen:
2!a" &s 0as proven to be a boon to t0e env&ronment. M&**&ons o$ tons o$ +oo%s t0at
#o*% ot0er#&se +o &nto *an%$&**s or more resor1e=&ntens&ve re1"1*&n+ pro+rams
&nstea% $&n% ne# 0omes ever" "ear t0an5s to e!a". Some o$ t0ese +oo%s &n1*%e
1onsmer e*e1tron&1s &tems *&5e 1ompter parts an% mob&*e p0ones t0at re*ease to@&1
sbstan1es on1e t0e"?re %&s1ar%e% an% e@pose% to t0e env&ronment.
'ocially responsible:
!e1ase e!a" e*&m&nates m&%%*emen an% *o#ers barr&ers to b"&n+ an% se**&n+,
potters &n rra* Me@&1o an% bea% #eavers &n 1entra* As&a 1an se** 0an%=ma%e +oo%s
%&re1t*" an% &ne@pens&ve*" to a mass&ve +*oba* a%&en1e. 80&s br&n+s ne# e1onom&1
opportn&t&es to %eve*op&n+ areas an% &n1reases 1*tra* n%erstan%&n+ bet#een
pop*at&ons. 2!a" 0as be1ome one o$ t0e #or*%?s most &nterest&n+ an% e@1&t&n+ trans=
nat&ona* ambassa%ors.
)i-e the real world in many ways:
Jst as "o?** en1onter bot0 0onest an% %&s0onest peop*e &n t0e rea* #or*%, "o?**
$&n% bot0 0onest peop*e an% 1roo5s on e!a". 80an5$**", e!a"?s s&te &n1*%es a se*e1t&on
o$ too*s *&5e t0e $ee%ba15 s"stem t0at are %es&+ne% to 0e*p "o to rema&n sa$e as an e!a"
member.
;n s0ort, s&n1e e!a"?s $on%&n+ &n 1995 &t 0as be1ome t0e #or*%?s *ar+est p*a1e to b" an%
se**, a 1ommn&t" o$ 0n%re%s o$ m&**&ons o$ re+*ar peop*e, sma** bs&nesses, an% even
b&+ bs&nesses $rom a** o$ t0e seven 1ont&nents. M&**&ons o$ &tems o$ ever" 5&n%
&ma+&nab*e, &n ever" 1on%&t&on &ma+&nab*e, 10an+e 0an%s ever"

%a" on e!a" $or pr&1es
ran+&n+ $rom one 1ent to 0n%re%s o$ t0osan%s or even m&**&ons o$ %o**ars (or pon%s, or
ot0er $orms o$ 1rren1").
ission statement:
DTo provide a global trading platform where practically anyone can trade
practically anything/
&istory
Learn how eBay began as a small business in someone's living room
and grew into one of the top earning Websites on the Internet
80e 1ompan" be+an &n t0e 0ome o$ '&erre (m&%"ar &s
1995 an% &s no# a *ea%er &n ;nternet revene. 80&s 1ompan" be+an as somet0&n+ *&5e an
on*&ne +ara+e sa*e &n 1995 an% 0as enCo"e% stea%" +ro#t0 over t0e "ears. ;tems on e!a"
are *&ste% b" 1ate+or&es an% an"one #&t0 an e!a" a11ont 1an b&% on t0e &tem o$ t0e&r
10o&1e. >o 1an $&n% Cst abot an"t0&n+ "o 1an poss&b*" &ma+&ne on e!a", &n1*%&n+
1ars, rea* estate, 1o**e1t&b*es, 1on1ert t&15ets, C6s, 1*ot0&n+ , 6B6s, an% art#or5. ,are
&tems 1an se** at ver" 0&+0 pr&1es. 80&n+s s10 as 2*v&s 'res*e"?s as0tra" or rare baseba**
tra%&n+ 1ar%s +o $or top %o**ar. /0en "o *&st an &tem $or a1t&on on e!a" &t 1an be seen
b" m&**&ons o$ peop*e a** over t0e #or*%.
Mr. (m&%"ar starte% e!a" $rom 0&s 0ome &n 1995. 80e $&rst name e!a" se% #as 210o
!a" 8e10no*o+". /0en t0e 1ompan" tr&e% to re+&ster t0e %oma&n name e10oba".1om, t0e"
$on% t0at &t #as a*rea%" &n se. 80e" s0ortene% t0e name to e!a".1om an% t0e /ebs&te
#as born. Je$$ S5o** #as t0e 1o=$on%er o$ t0&s 1ompan" an% Harvar% !s&ness S10oo*
+ra%ate Me+ /0&tman Co&ne% t0em &n 199.. 80e ear*" emp0as&s on e!a" #as t0e
1stomer. 80e ver" natre o$ on*&ne a1t&ons re3&re% t0at stran+ers trst ea10 ot0er.
A*on+ #&t0 +ro#t0 as a s&te $or b"&n+ an% se**&n+, e!a" #or5e% 0ar% to ma5e t0e&r
/ebs&te a 1ommn&t".
;n September o$ 199. e!a" 0as &ts &n&t&a* pb*&1 sto15 o$$er&n+. 80en &n Apr&* o$1999, t0e
1ompan" bo+0t t0e a1t&on 0ose !tter$&e*% an% !tter$&e*% $or an aston%&n+ pr&1e o$
290 m&**&on %o**ars. ;n Jne o$ 1999 e!a".1om #ent %o#n $or a*most t#ent"=$or 0ors.
80e 1ompan"?s E00 emp*o"ees too5 t0e t&me to persona**" 1a** t0e &n%&v&%a* se**ers #0o
#ere a$$e1te% b" t0&s 1ras0 an% apo*o+&Fe $or t0e %o#nt&me an% t0e &n1onven&en1e &t
pose% to t0em. 80&s ma%e e!a" a 0&t #&t0 t0e man" sers #0o $re3ente% t0e s&te an%
+ave t0e 1ompan" a ver" $avorab*e ot*oo5.
80e 1ompan" 0a% some &nterest&n+ a1t&ons 0appen t0at &n1*%e a 0man 5&%ne" t0at #as
pt p $or a1t&on &n A+st o$ 1999. 80e b&%s $or t0&s a1t&on soare% to over $&ve m&**&on
%o**ars be$ore e!a" &ntervene% an% p** t0e *&st&n+. 80en &n J*" o$ 2000, a rare baseba**
1ar% so*% $or 1.2 m&**&on %o**ars. 80&s #as t0e 0&+0est pa"&n+ a1t&on &n e!a"?s 0&stor" p
nt&* t0at po&nt. 6e1ember o$ 2000 sa# e!a" be+&nn&n+ to se*$=mon&tor sa*es $or
1op"r&+0te% mater&a*s. ;n -ebrar" o$ 2001 an &tem even stran+er t0an t0e 5&%ne" #as pt
p $or pb*&1 a1t&on. A man $rom Seatt*e so*% 0&s Aso*A $or E00 %o**ars be$ore e!a"
1o*% &ntervene an% stop t0e a1t&on. ;n Ma" o$ 2001 e!a" %e1&%e% to ban t0e sa*e o$ an"
&tem re*ate% to 1r&me &n1*%&n+ *etters $rom mr%ers, 1r&me s1ene memorab&*&a, an% seats
to v&e# e@e1t&ons.
80o+0 t0e $&rst t0&n+s so*% on e!a" #ere 1o**e1t&b*es an% 0ome &tems, t0e 1ompan"
bran10e% ot to 0&+0er pro$&*e se**ers *&5e 6&sne" an% :M. 80ese 1ompan&es se** &tems &n
t0e same manner as t0e &n%&v&%a* se**ers. 80e e!a" 1ommn&t" #as res&stant to t0ese
10an+es at $&rst bt soon +re# a11stome% to t0e presen1e o$ b&+ bs&ness 0ost&n+
a1t&ons.
80e /ebs&te Ha*$.1om #as bo+0t b" e!a" &n 2000 an% $**" &nte+rate% &nto e!a"?s #eb
1ommn&t" &n 2001. Ha*$.1om a**o#s sers to b" an% se** &tems at *o#er rates m10 *&5e
e!a" bt #&t0ot t0e a1t&on $eatre. ;n (1tober o$ 2002 e!a" a13&re% 'a" pa* ;n1. $or
1.5 b&**&on %o**ars. 'apa* &s t0e pre$erre% #a" o$ ma5&n+ pa"ments $or e!a" a1t&ons an%
&s +ro#&n+ &n pop*ar&t" $or ot0er ;nternet ses. 'apa* a**o#s a person to sen% or re1e&ve
mone" v&a an ema&* a%%ress. Mone" &n a 'a" pa* a11ont 1an be spent on t0e ;nternet,
sent b" 10e15 to t0e a11ont o#ner, or %epos&te% &nto a ban5 a11ont. 'a"pa* a*so o$$ers
1re%&t 1ar%s, %eb&t 1ar%s, an% a b&** pa"&n+ $n1t&on.
80e $tre o$ e!a" *oo5s br&+0t. 80e" enCo" 1ont&ne% +ro#t0 t0ro+0 t0e&r man"
1ompan&es an% ventres. !" t0e "ear 200E e!a" 0a% earne% 7.7 b&**&on %o**ars &n revene.
(ver 175 m&**&on peop*e #or*%#&%e se e!a". 80e 1ompan" 0opes to $rt0er e@pan%
operat&ons #or*%#&%e an% poss&b*" &n1orporate a%&o an% v&%eo &nto t0e a1t&on pa+es.
80&s 1ompan" ta5es pr&%e &n n%erstan%&n+ #0at t0e 1stomer #ants to 0appen #&t0 t0e&r
1ompan". 80e ABo&1e o$ t0e CstomerA #as born &n 1999. 80&s ventre br&n+s p to a
%oFen *o"a* 1stomers to+et0er #&t0 t0e 1ompan" to %&s1ss #0at &s an% #0at &s not
#or5&n+ on e!a". /&t0 t0&s 5&n% o$ &ntera1t&on #&t0 1stomers an% attent&on to %eta&*,
e!a" s0o*% be aron% $or a *on+ t&me to 1ome.
ar-eting +0
'ro%1ts
1. ant&3es
2. art
7. bab"
E. boo5s
5. bs&nessG &n%str&a*
9. 1ameras G p0otos
7. 1e** p0ones 4 '6A
.. 1*ot0&n+ s0oes an% ne1essar&es
9. 1o&n G paper mone"
10. 1o**e1t&b*es
11. 1ompters G net#or5&n+
12. 1onsmers e*e1tron&1s
17. 1ra$ts
1E. %o**s G bears
15. 6B6 G Mov&es
19. e!a" motors
17. enterta&nment memorab&*&a
1.. +&$t 1ert&$&1ates
19. 0ea*t0 G beat"
20. 0ome G +ar%ens
21. Ce#e*r" G #at10es
22. ms&1
27. ms&1a* &nstrments
2E. potter" G +*ass
25. rea* estate
29. spe1&a*t" serv&1es
27. sport&n+ +oo%s
2.. sports Mem, 1ar%s G $an s0op
29. stamps
70. t&15ets
71. to"s G 0obb&es
72. trave*
77. v&%eo +ames
7E. ever" t0&n+ e*se

Price
/0en "o t0&n5 abot se**&n+ on e=!a", one o$ t0e *ast t0&n+s t0at sa**" 1ome to m&n%
&s pr&1&n+ strate+&es. A$ter a**, e=!a" &s an a1t&on s&te. >o *&st "or &tem an% #a&t $or
1ompet&t&ve b&%%&n+ to %r&ve t0e pr&1e p. Un$ortnate*", &t)s not t0at s&mp*e.
'r&1&n+ t0e &tems "o se** on e=!a" &s an &mportant part o$ t0e se**&n+ pro1ess, even on e=
!a". Man" se**ers %on)t +&ve pr&1&n+ too m10 1ons&%erat&on an% t0e&r a1t&ons sa**"
s0o# &t.
'eop*e are *oo5&n+ $or bar+a&ns, espe1&a**" on e=!a". 80e" #&** b&% on*" on &tems #0ere
t0e" see a va*e $or t0e pr&1e t0e" are #&**&n+ to pa". Natra**" se**ers are 1on1erne%
abot +ett&n+ a $a&r pr&1e, too. ($ten, t0e" 0ave mone" &nveste% &n t0e &tem t0e" are tr"&n+
to se**. 80e" 1an)t +o be*o# a 1erta&n pr&1e or t0e" r&s5 *os&n+ mone".
So, 0o# %o pr&1&n+ strate+&es #or5 on e=!a"H
80ere are essent&a**" t0ree t"pes o$ pr&1&n+ "o nee% to be 1on1erne% #&t0:
Start&n+ b&%
,eserve pr&1e
!"=;t=No# pr&1e
2a10 o$ t0ese met0o%s 0as &mportant $a1tors to 1ons&%er
'tarting Bid$
2ven t0o+0 ea10 o$ t0ese 1an be &n1*%e% &n ever" a1t&on, e=!a" on*" re3&res "o to
set a start&n+ b&%. 80e ot0er t#o are opt&ona*.>o s0o*% pa" part&1*ar attent&on to t0e
start&n+ b&% as t0&s #&** be an &mportant $a1tor $or a b"er. Man" a1t&ons %on)t +et an"
b&%s Cst be1ase t0e start&n+ b&% pr&1e &s too 0&+0.Se**ers are #orr&e% t0at t0e" #&** *ose
mone" on t0e&r &tems &$ t0e" start t0e b&%%&n+ too *o#. 80e #ron+*" be*&eve t0at t0e"
#on)t 0ave eno+0 b&%s to %r&ve t0e pr&1e to t0e po&nt #0ere t0e" #&** ma5e a pro$&t on
t0e sa*e./0at t0ese se**ers $a&* to n%erstan% &s t0at a1t&ons I on*&ne or o$$*&ne I are tre
&n%&1ators o$ t0e va*e o$ a part&1*ar &tem. 'eop*e are #&**&n+ to pa" on*" #0at t0e"
be*&eve t0e &tem &s #ort0. ;t %oesn)t matter to t0em #0at a 1ata*o+ or a pr&1e +&%e sa"s
t0e &tem &s #ort0. 80ere are m&**&ons o$ re+&stere% e=!a" sers. 80e 10an1es t0at an &tem
#&** 1*ose #&t0ot 1ompet&t&ve b&%%&n+ are prett" s*&m. 80at &s, o$ 1orse, &$ "o 0ave an
&tem t0at peop*e #ant. ;$ "o are tr"&n+ to se** +arba+e, t0en a** bets are o$$.
(ne o$ t0e best #a"s to *et t0e mar5et %e1&%e t0e va*e o$ an &tem &s to set a *o# start&n+
b&% on1e 1ompet&t&ve b&%%&n+ starts, t0e tre pr&1e o$ t0e &tem #&** be1ome 1*ear.
80e bottom *&ne &s t0at a *o#er start&n+ pr&1e #&** *ea% to ear*" an% a1t&ve b&%%&n+. Never
set "or open&n+ pr&1e more t0an 450.00, no matter 0o# m10 t0e &tem &s #ort0. 80&s &s a
pr&1e po&nt t0at peop*e 0ave %&$$&1*t" 1ross&n+.

*eserve Price
80ere are t&mes #0en "o abso*te*" 1annot se** an &tem $or *ess t0an a 1erta&n
pr&1e. ;$ "o se a *o# start&n+ b&%, "o nee% a #a" to +arantee "o #&** rea10 t0at
m&n&mm pr&1e be$ore "o 0ave to se** t0e &tem. 80&s &s #0ere reserve pr&1es 1ome &n.
A reserve pr&1e &s 0&%%en $rom b"ers an% &s s&mp*" t0e *o#est pr&1e "o are #&**&n+ to
ta5e. ;$ t0e b&%%&n+ $a&*s to rea10 t0e reserve pr&1e "o are not re3&re% to 1omp*ete t0e
sa*e. ($ 1orse, "o 1an se** &t at t0e $&na* b&% pr&1e &$ "o #ant, bt "o are not re3&re%
to 1omp*ete t0e transa1t&on.
(n1e t0e b&%%&n+ rea10es t0e reserve pr&1e, t0en "o are ob*&+ate to se** t0e &tem #0en t0e
b&%%&n+ 1*oses. A *o# start&n+ b&% #&t0 a reasonab*e reserve pr&1e &s a +oo% strate+" $or
man" &tems. ;t en1ora+es b&%%&n+ bt +arantees t0at "o)** +et "or mone" ot o$ t0e
transa1t&on. 80e %o#ns&%e &s t0at man" b"ers %on)t *&5e reserve pr&1e a1t&ons. 80e"
3&15*" be1ome $rstrate% #0en t0e" repeate%*" b&% on*" to *earn t0at Dt0e reserve pr&1e
0asn)t been met.J A$ter a $e# en1onters *&5e t0&s, t0e")** +&ve p an% move on.
A reserve pr&1e 1an be a 0e%+e a+a&nst *os&n+ mone" on t0e sa*e, bt one t0&n+ to 5eep &n
m&n% &s t0at a se**er 1an 1*ose an a1t&on at an" t&me $or an" reason #&t0ot an" ne+at&ve
e$$e1ts. /0&*e ; #o*%n)t se t0&s as a strate+" $or ever" a1t&on, &t ma" save "o &$ t0e
b&%%&n+ &sn)t 3&te #0at "o e@pe1te% $or an &tem.

Buy +t Now Price:
(ne o$ t0e 1oo* $eatres o$ man" e=ba" a1t&ons &s a D!" ;t No#J btton. 80&s
a**o#s t0e b"er to pr10ase a %es&rab*e &tem an% stop t0e b&%%&n+ pro1ess. Man" b"ers
%on)t #ant to b&% an% #a&t a #ee5 on*" to $&n% t0e" are otb&% at t0e *ast moment. 80e
Db" &t no#J opt&on appea*s to t0&s t"pe o$ b"er.
-or t0e se**er, &t means +ett&n+ a sa*e at an attra1t&ve pr&1e. Somet&mes se**ers are #&**&n+
to pa" a *&tt*e more to +arantee t0e" #&** +et t0e &tem rat0er t0an #a&t $or t0e ot1ome o$
an a1t&on.
80e Db" &t no#J opt&on 1an be se% $or an" t"pe o$ &tem. ;t &s part&1*ar*" e$$e1t&ve
#0en "o are o$$er&n+ m*t&p*e &%ent&1a* &tems at an" +&ven t&me. Set "or pr&1e
some#0ere aron% "or reserve pr&1e.

Other Pricing 'trategies:
(ne o$ t0e a%%&t&ona* $a1tors t0at sa**" 1ontr&btes to b&%%&n+ an% t0e $&na*
pr&1e &s s0&pp&n+ 1osts. !"ers *oo5 1are$**" at s0&pp&n+ an% 0an%*&n+ 1osts an% $a1tor
t0em &nto t0e&r b&%.
>o #&** en1ora+e a1t&ve b&%%&n+ &$ "o o$$er $ree s0&pp&n+. !&%%ers #&** per1e&ve e@tra
va*e &n "or &tem an% t0e" 5no# t0ere are no a%%&t&ona* 1osts ot0er t0an t0e&r b&% pr&1e.
More o$ten t0an not, o$$er&n+ $ree s0&pp&n+ #&** more t0an pa" $or t0e 1ost o$ s0&pp&n+ t0e
&tem.
;$ "o se t0&s strate+" &n "or a1t&ons, ma5e sre "o a%vert&se &t &n t0e *&st&n+. Ket
peop*e 5no# abot &t. Cons&%er ment&on&n+ &t &n t0e t&t*e o$ t0e a1t&on &$ "o 0ave
room.
&ow to 'et the Price
!e$ore "o 1an *&st "or &tem, "o nee% to 0ave an &%ea o$ #0at "or &tem ma" be
#ort0. ;n some 1ases t0&s &s not re*evant. ;$ "o b" #0o*esa*e to se** on e=!a", "o ma"
on*" nee% to 5no# #0at &t 1osts "o to obta&n an% *&st "or mer10an%&se. >or pr&1es #&**
re$*e1t t0ose 1osts. ;$ "o are se**&n+ one=o$=a=5&n% &tems or 1o**e1t&b*es, "o #&** #ant to
0ave a +oo% &%ea o$ t0e va*e. C0e15 "or *o1a* *&brar" or boo5 store $or pr&1&n+ +&%es.
80ese ma" +&ve "o a +oo% &%ea o$ #0at "or &tem ma" be #ort0 (as #e** as prov&%e "o
#&t0 &mportant &n$ormat&on to &n1*%e &n "or *&st&n+.) !e 1are$*, 0o#ever, be1ase some
$&e*%s se t0e 1ata*o+ on*" as a +&%e*&ne. ;n stamp 1o**e1t&n+, $or e@amp*e, &t)s 1ommon*"
5no#n t0at 1erta&n stamps se** $or m10 more or m10 *ess t0an t0e 1ata*o+ pr&1e.
>o 1an 10e15 $or s&m&*ar &tems on e=!a". !" 10e15&n+ 1omp*ete% a1t&ons, "o 1an +et a
reasonab*e &%ea o$ #0at peop*e are #&**&n+ to pa".
&ow to 'ell On "Bay: Pricing 'trategy

Man" ne# 2!a" se**ers ma5e one o$ t#o m&sta5es: e&t0er t0e" overpr&1e &tems to
an nte**ab*e e@tremeL or t0e" *ose mone" on ever" transa1t&on b" sett&n+ *o# start&n+
pr&1es #&t0 no restr&1t&ons. 80ere are t0ree strate+&es,
'trategy 12 &$ "o are *&st&n+ a pop*ar &tem t0at "o are 1on$&%ent #&** se** $or a 0&+0
pr&1eL one strate+" "o 1an se &s t0e ten=%a", one 1ent start&n+ pr&1e, no reserve a1t&on.
80&s &s t0e best #a" to start a b&%%&n+ #ar: p** &n b&%%ers ear*" #&t0 a *o# start&n+ pr&1e
an% no reserve an% +&ve t0ose ten %a"s an% t#o #ee5en%s to batt*e &t ot. 6epen%&n+ on
t0e pro$&t=mar+&n o$ t0e &tem an% t0e 3a*&t" an% nmber o$ "or 1ompet&tors, "o ma"
#ant to 1ons&%er s&n+ *&st&n+ p+ra%es, s10 as bo*%, 0&+0*&+0t, an% $eatre *&st&n+
opt&ons to ensre "or a1t&on st&15s ot o$ t0e 1ro#%. 80&s strate+" &s not $or re1ommen%
$or be+&nners. 80&s &s e@treme*" 0&+0 r&s5 &$ "o %o not 5no# 0o# to ta5e t0e r&s5 ot o$
&t.
'trategy 13 no#, &$ "o are ne# to 2!a" or #ant to *&st an &tem #&t0 n%eterm&ne%
pop*ar&t", "o 1an se a sa$er, bt potent&a**" as pro$&tab*e b&%%&n+ strate+" $or ten=%a"
a1t&ons. >o st&** #on)t se a reserve #&t0 t0&s strate+". !t &nstea% o$ sett&n+ t0e start
pr&1e *o# to en1ora+e b&%%&n+ #ar, "o are +o&n+ to set "or start pr&1e to "or &%ea*
se**&n+ pr&1e = an% t0en 1op*e &t #&t0 a b" &t no# pr&1e t0at &s s*&+0t*" 0&+0er. 80&s #&**
pt pressre on t0e b"er to b" &t no# &nstea% o$ #at10&n+. ;$ s0e #a&ts, s0e +a&ns
abso*te*" not0&n+==an% s0e r&s5s someone e*se b&%%&n+ (an% r&n&n+ t0e *o# !;N pr&1e)
or Cst snat10&n+ &t #&t0 t0e !;N opt&on. ;n a%%&t&on, 5no#&n+ t0at s0e #&** *ose not0&n+
an"#a", s0e #&** rea*&Fe t0at s0e 1an +et t0e &tem p to ten %a"s sooner &$ s0e ses t0e
!;N opt&on to or%er &t t0en, rat0er t0an #a&t&n+ $or t0e a1t&on 1*o15 to t&15 %o#n. 80e
strate+" %es1r&be% above &s ver" sa$e. ;t &s se &t $or t0e maCor&t" o$ m" a1t&ons an%
a*#a"s +et pos&t&ve res*ts. At #orst, &t #&** ta5e 7=E #ee5s to se** an &tem.
'trategy 14 Anot0er e$$e1t&ve #a" to se a ten=%a" sett&n+ &s &n 1onCn1t&on #&t0 %&t10
a1t&ons==or a1t&ons t0at se** a nmber o$ t0e same &tem. 8en=%a" a1t&ons #&** +&ve "o
t0e *on+est amont o$ t&me to move t0e 0&+0est amont o$ pro%1ts. >o ma" a*so #ant to
$eatre ten=%a" 6t10 a1t&ons, %epen%&n+ on #0at &tems "o are se**&n+. ;$ "o) rese**&n+
&n$ormat&on pro%1ts an% re*" on t0e 3ant&t" o$ sa*es $or pro$&t, t0&s #ont be e$$e1t&veL
bt &$ "o)re se**&n+ a nmber o$ e@pens&ve, 0&+0 pro$&t=mar+&n &tems, $eatr&n+ "or
a1t&on &s probab*" a +oo% &%ea.
;$ none o$ t0ese strate+&es #or5s $or "o, "o s0o*% 1ons&%er t0e $o**o#&n+ t#o t0&n+s:
1) t0e pr&1e ot0er 2!a" bs&nesses se** "or pro%1t $or. ;$ someone e*se ;S se**&n+ "or
pro%1t, t0ere &s a reason $or &t = an% &t)s probab*" t0e pr&1e. ;$ "o 1annot a$$or% to se** at
reasonab*e pr&1e, "o nee% to $&n% a ne# sor1e to !" $rom. An% &$ "or pro%1t)s pr&1e
&s reasonab*e, t0en 2) "o nee% to re%es&+n "or a1t&on an% $&n% ne# #a"s o$ p**&n+ &n
tar+ete% tra$$&1.
Place
2!a" &s an on*&ne mar5et o$ b"&n+ an% se**&n+. ;t prov&%es serv&1es to b" an%
se** t0ro+0 &nternet. Cstomers 0ave not to +o to t0e mar5et b" se*$. 2!a" prov&%es &ts
serv&1es &n 2rope Amer&1a, <orea an% &n 10&na. /0en a 1stomer pr10ase an" t0&n+
$rom e!a", e!a" &s 1onne1te% #&t0 a** ban5s 1stomer pa"s t0e amont b" t0e 1re%&t 1ar%
or 1an b" 10e13e. 2!a" se ro"a* ma&* serv&1es to sen% t0e pro%1t to t0e b"er.
80ro+0 ro"a* ma&* serv&1e t0e 1stomer 1an +et &ts pro%1t #0&10 0e or s0e bo+0t.
Promotion
2!a" &s no# t0e most $amos #ebs&te bas&1a**" &t nee%s not to be promote%. !t
$or promot&ons e!a" a%vert&se% &tse*$ b" %&$$erent #ebs&tes *&5e on :oo+*e an% &t a*so
sen% &ts &n$ormat&on)s to &ts a11ont 0o*%ers on t0e&r a11ont. 2!a" 0as a separate bo@ on
&ts #ebs&te $or $ee%ba15 $rom &ts 1stomers. 8o promote &tse*$ e!a" ana*"s&s &ts 1stomers
v&e# abot &t. ;n t0&s #a" e!a" promote &tse*$.
a5or services and features
BallPoint :
e!a"?s pre$erre% on*&ne b&** pa"ment serv&1e t0at $a1&*&tates 1re%&t 1ar%
pa"ment bet#een b"ers an% se**ers.
eBay +nternational
Users on e!a" represent 1ontr&es a** over t0e #or*%. /&t0 e!a"?s v&s&on an%
+*oba* bs&ness strate+", t0e 1ompan" 1ont&nes to e@pan% &ts serv&1e an% bran%
abroa%.
Buy +t Now
!" ;t No# &s an e@1&t&n+ opt&ona* en0an1ement $or &tem *&st&n+s. ;t a**o#s
b"ers to b" an &tem at a spe1&$&e% pr&1e #&t0ot 0av&n+ to #a&t $or an en% o$ an
a1t&on
eBay Professional 'ervices.
'ro$ess&ona* Serv&1es on e!a" serves t0e $ast +ro#&n+ an% $ra+mente%
sma** bs&ness mar5etp*a1e b" prov&%&n+ a %est&nat&on on e!a" to $&n%
pro$ess&ona*s
eBay )ocal Trading$
e!a" 0as *o1a* s&tes &n 90 mar5ets &n t0e U.S. 80ese *o1a*&Fe% e!a" s&tes
a**o# sers to eas&*" $&n% &tems *o1ate% near t0em an% bro#se t0ro+0 &tems o$
*o1a* &nterest
eBay Premier$
e!a" 'rem&er &s a spe1&a*t" s&te on e!a", #0&10 s0o#1ases $&ne art,
ant&3es, $&ne #&nes an% rare 1o**e1t&b*es $rom *ea%&n+ a1t&on 0oses an% %ea*ers
$rom aron% t0e #or*%
eBay )ive %uctions$
. K&ve A1t&ons prov&%es *&ve, rea*=t&me on*&ne b&%%&n+ on &tems be&n+ so*%
on t0e sa*es $*oor o$ t0e #or*%?s *ea%&n+ a1t&on 0oses
"nvironment
'uppliers
'uppliers from whole sellers to drop shippers:
80ere are man" spp*&ers t0at 0e*p spp*" &tems to e!a" bs&ness$ S&mp*" se** t0e &tem
an% t0e %rop s0&pper sen%s t0e &tem to t0e 1stomer. A** t0e persons an% t0e 1ompan&es
t0at p*a1e t0e&r pro%1ts on e!a" #&t0 p&1tres are t0e spp*&ers o$ e!a".
ar-eting intermediaries
!e1ase e!a" e*&m&nates m&%%*emen an% *o#ers barr&ers to b"&n+ an% se**&n+,
t0ere are no p0"s&1a* &nterme%&ar&es on e!a". A1ta**" e!a" &s 1onne1te% #&t0 pa" pa*.
'a" pa* &s a #eb s&te #0&10 &s 1onne1te% #&t0 e!a" &t re1e&ves pr&1e $rom t0e 1stomers
an% sen%s &t to t0e e!a" &n1. an% re1e&ves pro%1t $rom e!a" an% 0an%over &t to t0e
1stomers.
Competitors
2!a")s broa%=base% 1ompet&tors &n1*%e t0e vast maCor&t" o$ tra%&t&ona* %ept an%
+enera* mer10an%&se as #e** as emer+&n+ on*&ne reta&*ers.
%O)
%ma6on
!".1om
Atob"te*.1om
yahoo
80ese are t0e $e# e@amp*es o$ e!a")s 1ompet&tors. Here #e 1ompare eba" #&t0 "a0oo
a1t&ons.
7ahoo vs$ ebay for sellers
ebay yahoo
Ma@&mm
%rat&on
10 6a"s 1E 6a"s
en%&n+ t&me e!a" a1t&ons en% at t0e t&me t0e
a1t&on #as 1reate%
>a0oo a**o#s "o to set t0e
en%&n+ t&me #&t0&n a one=0or
ran+e.
-ee base% on t0e start&n+ or reserve pr&1e
o$ an &tem ea10 t&me an &tem &s *&ste%
not 10ar+e an" $ees $or *&st&n+
a1t&on &tems to t0e b"er or
se**er
10an1es o$ b"
G se**
More *&5e*" Kess *&5e*"
/0en a ne#
&tem &s poste%
a pa+e $or t0e &tem +ets 1reate%
&mme%&ate*", bt &t 1an ta5e severa*
0ors be$ore t0e &tem +ets a%%e% to t0e
*&st o$ &tems an% &s sear10ab*e
A pa+e $or t0e &tem &s 1reate%
&mme%&ate*". 80e &tem &s a*so
a%%e% to t0e *&st o$ &tems an% &s
sear10ab*e &mme%&ate*"
Sn&p&n+
not0&n+ to stop b&%%ers $rom #a&t&n+
nt&* t0e *ast se1on%s o$ an a1t&on to
ma5e a b&%.
&t &s atomat&1a**" e@ten%e% b" A
b&% &s ma%e #&t0&n t0e *ast 5 m&ns
o$ an a1t&on, $&ve m&ntes
,estart Cannot be atomat&1a**" restart Can atomat&1a**" be restart
,esponse
Not respon% as 3&15*" as >a0oo.
(bro#s&n+, sear10&n+, et1)
!etter per$orman1e t0an e!a"
,estr&1t&on
More restr&1t&ons
-e# restr&1t&ons
1onter
to se anot0er s&te to p*a1e a Conter
on "or a1t&on &tem pa+e
ab*e to 1ont #&t0ot p*a1&n+
1onter on "or a1t&on pa+e
"Bay vs$ yahoo for buyers
ebay yahoo
;tems
(ver 9 t&mes more &tems A *ot $e#er &tems
C0an+&n+ $or
post&n+
"es No
Unsa*
t0&n+
More *&5e*" to $&n%
Not 0ave as #&%e or %eep o$
a se*e1t&on
Sear10
Can *&m&t #&t0&n a 1ate+or"
8&t*es or t&t*es G %es1r&pt&on
8&t*es or t&t*es G
%es1r&pt&on
Can *&m&t #&t0&n a
1ate+or"
!ro#se &tems !" t&t*e or b" p&1tre (&$ %es&+nate% as part
o$ t0e +a**er" )
!" t&t*e or b" p&1tre
;nsran1e Atomat&1 &nsran1e $or sa*es
Not o$$er &nsran1e
Spa1e $or
p&1tre Not prov&%e spa1e $or p&1tres: >o mst
p*a1e "or p&1tre $&*es (n some ot0er s&te
'rov&%es $ree spa1e $or
a1t&on &tem '&1tres, so
more &tems 0ave p&1tres
-or "o to see
'ource : Cost %nalysishttp:88www$alysta$com8software8ebayyahoo$htm 9une 2:,
3::2
"B%7, % COP%N7 %N%)7'+'
"Bay '$!$O$T %nalysis
EBays Strengths
2!a" &s t0e *ea%&n+ prov&%er o$ on*&ne a1t&on an% 1stomer=to=1stomer tra%&n+ &n
t0e #or*%. 80e" 0ave man" 1ompeten1&es, 1ore 1ompeten1&es, an% %&st&n1t&ve
1ompeten1&es t0at set t0em apart $rom t0e&r 1ompet&tors. 80e&r a**&an1es, &nternat&ona*
%om&nan1e, an% re1o+n&Fab*e bran%, name Cst to name a $e#, are some o$ t0e ma&n
reasons #0" e!a" &s a 1ompan" t0at &s 0ar% to top.
)argest Online %uction Forum;core competence<
-rom &ts be+&nn&n+ &n t0e m&%=1990s, e!a" 0as been +ro#&n+ &n *eaps an%
bon%s. 80e" no# 0ave over 9E.9 m&**&on re+&stere% sers &n more t0en 150 %&$$erent
1ontr&es. e!a")s $on%er '&erre (m&%"ar %&% not even see t0e tremen%os
poss&b&*&t&es t0at e!a" 0a% #0en &t #as $&rst %eve*ope% over ten "ears a+o. e!a" no#
0o*%s t0e top spot &n t0e on*&ne a1t&on &n%str". ;n t0e Un&te% States a*one one=t0&r%
o$ t0e pop*at&on &s a*rea%" re+&stere% #&t0 t0e s&te an% #&t0 &n1reas&n+ se o$ t0e
&nternet t0at nmber &s sre to +ro#.
*ecogni6able Brand Name;core competence<
A re1o+n&Fab*e bran% name &s &mportant to t0e s11ess o$ a 1ompan". e!a"
0as ma%e sre to se 1o*or an% n&3e #r&t&n+ to s0o# t0e&r bran% name o$$. 80e"
a*so se te*ev&s&on an% ;nternet a%vert&s&n+ to +et 1ont&ne% pb*&1&t" on %&$$erent
me%&a avenes. AmaFon.1om %oes not 0ave as m10 $a1e va*e as e!a". 80e&r name
&s not %&st&n1t&ve to t0e 1stomers *&5e e!a")s.
Over 3=: %lliances ;competence<
e!a" 0o*%s a**&an1es #&t0 some o$ t0e *ar+est 1ompan&es &n t0e #or*%. 80e"
&n1*%e U'S, Amer&1a (n*&ne, ;!M, 'a"'a*, an% /a*t 6&sne". 80ese a**&an1es 1reate
more opportn&t&es $or e!a" to a%vert&se an% rea10 potent&a* 1stomers. e!a" 0as
a*so 1reate% a**&an1es #&t0 1ompan&es t0at 0e*p to ma&nta&n 1stomer sat&s$a1t&on.
8ra%esa$e an% ;=2s1ro# 0ave bot0 partnere% #&t0 e!a" to ma5e sre t0at a**
1stomers +et #0at t0e pa" $or.
.lobal *each ;core competence<
80e +*oba* rea10 t0at e!a" 0as obta&ne% &s not mat10e% b" an" ot0er on*&ne
a1t&on s&te. A*t0o+0 AmaFon.1om &s &n a 1*ose se1on% to e!a", 1stomers
obv&os*" pre$er e!a")s +*oba* ab&*&t". 80e" 0ave t0e 1apab&*&t" to rea10 peop*e &n
v&rta**" an" part o$ t0e #or*% an% +et t0em t0e pro%1t t0e" are *oo5&n+ $or.
"ntertaining 'ite ;competence<
e!a" 0as 1reate% a s&te t0at ma5es peop*e #ant to 1ome ba15 a+a&n an% a+a&n.
80e" are 1onstant*" revamp&n+ t0e&r s&te to ma5e sre t0at &t &s t0e eas&est, $astest, an%
most $n a1t&on s&te on t0e #eb.
Over 3>,::: ?ifferent Categories ;distinctive competence<
80e #&%e var&et" o$ pro%1ts o$$ere% on e!a" +&ves t0em a 1ompet&t&ve
a%vanta+e above a** ot0er on*&ne a1t&on s&tes. 80e" are *&5e t0e /a*=Mart o$ t0e
;nternetM 80e" sa" t0at an"t0&n+ "o #ant "o 1an $&n% on e!a".
.
EBays Weaknesses
K&5e an" 1ompan", e!a" 0as #ea5nesses. 80e" are not ab*e to %o ever"t0&n+
to t0e best o$ t0e&r ab&*&t&es. A *a15 &n ab&*&t" to mon&tor a** &**e+a* a1t&v&t" as #e** as
$a&*re &n some $ore&+n mar5ets &s t#o #ea5nesses o$ e!a".
+nability to easure +llegal %ctivity on 'ite
e!a" 0as ta5en man" pre1at&ons to prevent &**e+a* a1t&v&t" on t0e&r s&te. 80e"
est&mate t0at on*" 1 per1ent o$ transa1t&ons on t0e&r s&te &nvo*ve $ra%. 80e 1stomers
0o#ever %&sa+ree to some e@tent. Some sa" t0at t0ere are as m10 as 10 per1ent
$ra%*ent transa1t&ons. 2!a" 0as no rea* #a" to measre t0e e@tent o$ &**e+a*&t" on
t0e&r s&te.
Inability to Penetrate Some Foreign Markets
'enetrat&on &n $ore&+n mar5ets &s 1r1&a* to t0e s11ess o$ on*&ne a1t&ons.
2!a" 0as %one an otstan%&n+ Cob o$ penetrat&on &n $ore&+n mar5ets. Ho#ever, t0e"
0ave been nab*e to ta5e over one o$ t0e most 1r1&a* $ore&+n mar5ets, Japan. Japan
&s one $ore&+n mar5et t0at &s on t0e r&se. 80e" are be1om&n+ more prosperos an% se
o$ t0e &nternet &s +ro#&n+. ;$ e!a" &s not ab*e to +a&n +ron% &n t0&s mar5et &t 1o*%
0rt &ts $ore&+n mar5et stan%&n+.
)ac- of +n@?epth ?escriptions for Products
AmaFon.1om boasts &n=%ept0 pro%1t %es1r&pt&ons $or a** mer10an%&se so*% on
t0e&r s&te. 80&s &s not one o$ e!a")s otstan%&n+ $eatres. 80e *a15 o$ %es1r&pt&on &n
pro%1ts 1o*% be a $a1tor &n t0e amont o$ 1onter$e&t an% #ron+*" &%ent&$&e%
pro%1ts t0at are so*% to 1stomers.
Technology alfunctions
8e10no*o+" ma*$n1t&ons are a*#a"s +o&n+ to be a $a1tor #0en %ea*&n+ #&t0
#ebs&tes an% on*&ne s0opp&n+. e!a" mst ta5e measres to 5eep ma*$n1t&ons as *o#
as poss&b*e to reta&n 0app" 1stomers an% to 5eep 0a15ers ot o$ persona* 'a"'a" an%
e!a" a11onts.
EBays Opportunities
2!a" 1an 1ont&ne to see5 a**&an1es, partners0&ps, an% ne# 1stomers to
1ont&ne &ts re&+n as nmber one.
Changing )ifestyles of People
'eop*e are s&n+ t0e &nternet more an% more to pa" b&**s, ta*5 to $am&*", an%
s0op. e!a" 1an se t0&s opportn&t" $or 1ont&ne% mar5et penetrat&on an% e@pans&on.
%cAuisition of 'hop 7ahoo$com
>a0oo.1om)s s0opp&n+ s&te &s ver" #ea5 &n t0e on*&ne a1t&on &n%str". e!a"
s0o*% e@p*ore t0e poss&b&*&t" o$ a13&r&n+ t0e&r s0opp&n+ s&te, a*on+ #&t0 &ts
members an% a**&an1es a*rea%" $orme% to broa%en t0e&r 1stomer base. 2!a"
a*rea%" 0as partners0&ps #&t0 >a0oo.1om &n ot0er areas so t0&s a13&s&t&on #o*%
bene$&t bot0 part&es.
Continued +nternational "#pansion
As &nternet se 1ont&nes to +ro# t0ro+0ot t0e #or*% e!a" mst ta5e ever"
opportn&t" to enter %es&rab*e &nternat&ona* mar5ets. /&t0 t0e amont o$ &nternet
sers a*rea%" re+&stere% on e!a" &n t0e Un&te% States 1ont&ne% &nternat&ona*
e@pans&on &s 1r&t&1a*.
+ncreasing (se of the +nternet
80e &nternet &s be&n+ se% more an% more ea10 %a". e!a" 1an ta5e t0&s
opportn&t" to e@pan% an% penetrate ne# mar5ets.
EBays Threats
80ere m&+0t a*so be t0e potent&a* o$ trn&n+ some t0reats &nto
opportn&t&es.
Thieves
80ere #&** a*#a"s be t0e t0reat o$ $ra% an% &**e+a* a1t&ons &n on*&ne s0opp&n+.
No matter 0o# man" pre1at&ons e!a" ta5es 1ompter 0a15ers an% t0&eves #&** $&n%
ne# #a"s to tr&15 0onest s0oppers. e!a" 0as ta5en pre1at&ons to prevent t0ese
&**e+a* a1t&ons an% t0e" mst sta" on t0e&r toes to ma5e sre t0e" %o a** t0e" 1an to
prevent &**e+a* a1t&v&t" on t0e&r s&te.
+ncreasing Number of Online Trading 'ites
/0en an &n%str" &s attra1t&ve ne# 1ompet&tors #&** a*#a"s tr" to enter an%
stea* some o$ t0e mar5et s0are. e!a" a*rea%" 0as man" 1ompet&tors srron%&n+ t0em
&n1*%&n+ AmaFon.1om, !&%, an% e'&er. Some boast t0at t0e" are an a*ternat&ve to
e!a" #0&*e ot0ers Cst tr" to be better t0an e!a". 8o ssta&n a 1ompet&t&ve a%vanta+e
above t0e&r 1ompet&tors e!a" mst 1ont&ne to +ro# an% a%van1e &n t0e on*&ne
a1t&on &n%str". Strate+&es mst be %eterm&ne% an% %e$enses $orme%.
*apid .rowth of %ma6on$com
AmaFon.1om 0as 1ont&ne% to +ro# s&n1e &t #as $orme% &n t0e m&%=
90s. 80e" t0e *ar+est 1ompet&tor o$ e!a" an% ma" 0ave t0e potent&a* to ta5e
over t0e *ar+est mar5et s0are &n t0e on*&ne a1t&on &n%str".
+ncreasing Number of Online 'tores
(n*&ne s0opp&n+ &s be1om&n+ more an% more 1ommon. Stores s10 as
8ar+et an% JC 'enn" 0ave %eve*ope% s&tes #0ere peop*e 1an s0op $rom t0e
1om$ort o$ t0e&r o#n 0ome. 80&s poses a *ar+e t0reat to e!a". 80e" are no# not
on*" 1ompet&n+ #&t0 ot0er on*&ne a1t&on s&tes bt a*so on*&ne reta&*ers.
?espite these challenges, prospects for eBay in the future loo- bright, as eBay
growth continues to be strong and eBay,s recent acAuisitions continue to pic-
up financial steam and +nternet traffic as well$
7%&OO, COP%N7 %N%)7'+'
Strengths:
large adverting accounts
>a0oo)s (vertre &s a tremen%os*" pro$&tab*e ;nternet a%vert&s&n+
bs&ness. ;t $o1ses on a$$&*&ate a%vert&s&n+ $or *ar+e a%vert&n+ a11onts, &n t0e
same #a" as :oo+*e?s A%sense pro+ramme. 80&s &s an &mportant &n1ome stream
$or >a0ooM.
The most popular website
>a0ooM 0as over 750 m&**&on sers o$ &ts serv&1es an% so*t&ons. 80&s
ma5es &t a ver" po#er$* mar5et&n+ 1ompan", #&t0 a ver" #e** 5no#n bran%.
Some reports &n%&1ate t0at &s &t &s t0e most pop*ar #ebs&te &n t0e /or*%.
international business presence
A 5e" *on+=term stren+t0 &s >a0oo)s &nternat&ona* bs&ness presen1e. As
t0e ;nternet e@pan%s an% &t &s a%opte% b" more nat&ons t0e opportn&t&es $or
;nternet bran%s be+&n to emer+e. >a0ooM &s #e** p*a1e% to ta5e a%vanta+e o$ t0ese
opportn&t&es #&t0 &ts strate+&1 bs&ness n&ts &n As&a, 2rope an% Astra*&a.
source of structured information
80e >a0ooM 6&re1tor" &s an or&+&na* sor1e o$ str1tre% &n$ormat&on. ;t
0as b&*t over t0e *ast %e1a%e, an% n*&5e ma&nstream sear10 en+&nes, &ts 1ontent &s
mo%erate% (&.e. s&tes are vette% be$ore t0e&r &n1*s&on).
Weaknesses:
?ifferentiation
6&$$erent&at&on &s %&$$&1*t $or >a0ooM. A*most a** o$ &ts pa15a+e% serv&1es
are ava&*ab*e $rom ot0er sor1es.
1. Sear10 $a1&*&t&es are ava&*ab*e on MSN an% :oo+*e.
2. -ree 2=ma&* a11onts are ava&*ab*e $rom Hotma&* (MSN) or :=Ma&*
(:oo+*e), an% man", man" ot0ers.
7. Ne# &s ava&*ab*e $rom CNN or t0e !!C.
E. S0opp&n+ &s ava&*ab*e ever"#0ere on t0e ;nternet.
(ncertain future
(n*&ne a%vert&s&n+ &s a ne# &n1ome stream $or or+an&Fat&ons s10 as MSN,
>a0ooM an% :o++*e. >es, to%a" t0e" are ver", ver" pro$&tab*e. Ho#ever, as
te10no*o+" %eve*ops an% ne# n$oreseen a%vert&s&n+ me%&a emer+e, t0e $tre &s
n1erta&n $or t0ese &n1ome streams. 80&s &s a #ea5ness $or >a0ooM an% &ts
1ompet&tors.
Anot0er &n1ome stream t0at 0as been 5e" to >a0ooM &s %er&ve% $rom &ts
partners0&ps #&t0 te*e1ommn&1at&on prov&%ers. -or e@amp*e, "o b" an ;nternet
1onne1t&on pa15a+e $rom "or *o1a* te*ep0one 1ompan", an% &t &n1*%es a $ee=
base% >a0ooM pa15a+e &n1*%&n+ e=ma&* a11onts, ser spport an% ot0er a%%e%
va*e serv&1es. ;$ ever t0&s 10anne* &s 10an+e% or remove%, t0e &n1ome stream
#o*% be a$$e1te%.
Opportunities:
international mar-et
80e &nternat&ona* mar5et &s a 0+e opportn&t" $or >a0ooM. >a0ooM,
M&1roso$t an% :oo+*e are bs" 1arv&n+ n&10es an% ta5&n+ over bs&nesses &n are
aron% t0e :reater C0&na ,e+&on. C0&na 0as over 1,200,000,000 1&t&Fens. (t0er
e1onom&es, s10 as ;n%&a, a*so o$$er tremen%os +ro#t0 potent&a*.
7ahooB ?irectory
80e 6eve*opment o$ t0e >a0ooM 6&re1tor" 0as potent&a* $or ne# bs&ness
an% &n1ome streams. 8#o t0&r%s o$ or+an&Fat&ons &n (0mae?s 8r&a% (2rope, Japan
an% t0e USA) are Sma** Me%&m 2nterpr&ses (SM2?). SM2?s are potent&a*
%&re1tor" a%vert&sers.
obile technologies
Mob&*e te10no*o+&es o$$er anot0er opportn&t" $or >a0ooM. 8o%a" #e
a11ess t0e ;nternet s&n+ persona* 1ompters. 8omorro# p0ones, te*ev&s&ons,
persona* or+an&sers, ms&1 p*a"ers an% 1ompters #&** mer+e an% morp0. 80e
mob&*e %ev&1es o$ t0e $tre #&** nee% serv&1es an% so*t&ons. >a0ooM #o*% be
#e** p*a1e% to prov&%e man" o$ t0em.
Threats:
competitors
80e b&++est t0reat $or a** #eb=base% or+an&Fat&on &s 1ompet&t&on. H+e
pro$&ts attra1t &nvestors, &nnovators an% entrepreners. 6ot1om $ever 0as not +one
a#a", &t &s no# more $o1se% on pro$&t %e*&ver". A** o$ >a0ooM?s 5e" serv&1es 0ave
1ompet&tors s10 as A(K, :oo+*e an% man" ot0ers.
culture specific competitors
;nternat&ona*, 1*tre spe1&$&1 1ompet&tors 1o*% a$$e1t >a0ooM &n t0e $tre,
n*ess strate+&1 a**&an1es are $or+e%. C0&na 0as %eve*ope% &ts o#n sear10 en+&nes,
as 0as ;n%&a. /0" s0o*% t0e /or*% se USA base% 1ompan&es s10 as >a0ooMH
80ere nee%s to be a ser&es o$ sbstant&a* 1ompet&t&ve a%vanta+es to see t0e
bs&ness rema&n as an &nternat&ona* bran%. Koo5 at #0at 0as been *earne% $rom t0e
+*oba* 1ar &n%str", or e*e1tron&1s &n%str".
Technological factor:
No# %a"s ever" t0&n+ 0as a$$e1te% b" t0e te10no*o+". So e!a" 0as a*so
some e$$e1ts o$ te10no*o+". No# a %a")s e!a" ses DbetaJ vers&on t0e vers&on o$
e!a" &s p%ate% b" t0e M&1roso$t 1orporat&on #0en M&1roso$t ma5e 10an+es &ts
&nternet e@p*orer t0en e!a" vers&on a*so 10an+e% b" t0e M&1roso$t.
Functions of latest versionC
;t #or5s atomat&1a**" means #0en an" 1stomer #ants to $&n% ot
an" t0&n+ t0e beta vers&on as5s abot "or 0ome a%%ress or *o1at&on #0en "o te**
0&m. 80en beta vers&on as5s "o to abot t0e area bon%ar" &n #0&10 "o #ant to
b" t0e t0&n+.

"#ampleC
2!a" &n an a1t&on p*a1e ever" one 1an b" or se** t0ro+0 &t. -or e@amp*e
&$ "o #ant to b" no5&a N95 an% "o te** to beta vers&on t0at "o #ant &t #&t0 &n
E0 5m aron% to "or 0ose. !eta vers&on sear10es &t #&t0&n E05m o$ "or 0ose
an% te** "o t0at &s &t ava&*ab*e #&t0 &n t0e %&stan1e or not.
Political factor:
2!a" &s not a$$e1te% b" an" po*&t&1a* $a1tor &t &s $ree on*&ne mar5et p*a1e
$rom po*&t&1a* env&ronment. No ne# *a#s an% an" pressre +rop 1an a$$e1t e!a".
!as&1a**" e!a" #or5s n%er t0e +ovt. an% t0ere are some r*es an% re+*at&ons o$
2rope an% Amer&1an +ovt. t0at)s #0" po*&t&1a* env&ronment 1an not ma5e
10an+es b" pressre on e!a".
?irect mar-eting channel:
2!a" %&re1t*" tar+ete% to &ts 1stomers t0ere)s no &nterme%&ar&es &nvo*ve
bet#een 1stomers an% 1ompan". 2!a" &n1. ses t0e %&re1t %&str&bt&on 10anne* to
$or#ar% t0e pro%1t to &ts 1stomers. ;t se**s %&re1t*" to &ts 1stomers. Same *&5e
Avon, Am#a" an% 8pper#are se** t0e&r pro%1ts %oor to %oor or t0ro+0 0ome
an% o$$&1e sa*es. 2!a" $or#ar% &ts pro%1t b" ro"a* ma&* &n 2n+*an%. ,o"a* ma&*
prov&%es t0ree t"pes o$ pa15a+es $or trans$err&n+ t0e pro%1t &t %epen%s on
1stomer &n 0o# m10 t&me 0e #ant to re1e&ve 0&s pro%1t. 80e ver" spe1&a* t&me
"or pro%1t #&** be 0an%over to "o t0e ver" ne@t %a". 80e a1t&on pro1ess on
e!a" &s %&re1t $rom se**ers to e!a" to b"ers.
%uction process:
;. -&rst t0e person #0o #ants to se** 0&s pro%1t $rom e!a" 0e +et re+&sters
0&mse*$ #&t0 0&s pro%1t.
;;. ;n se1on% step t0e b"ers start&n+ b&%%&n+ on t0at pro%1t.
;;;. S11ess$* b&% se*e1te%
;B. 80an ban5s are 1onne1te% #&t0 e!a" t0e b"er 1an pa" b" 10e15p or b"
1re%&t 1ar%.
B. A$ter pa"ment t0e ban5 not&$" to e!a" to ma5e sre t0at t0e pa"ment 0as
%one.
B;. 2!a" not&$" to t0e se**er
B;;. 80e se**er %e*&vers t0e pro%1t to t0e b"er on 0&s +&ven a%%ress.
B;;;. 80en t0e b"er sen%s not&$&1at&on to e!a" $or t0e re1&p&ent o$ t0e pro%1t.
;N. 2!a" sen% t0&s not&$&1at&on to t0e ban5.
N. 80en ban5 sen% pa"ment to t0e se**er.
80ese are t0e steps t0at are &nvo*ve% $or a1t&on pro1ess &n e!a" t0at t0e se**ers
an% t0e b"ers s0o*% 0ave to $o**o#.
"Bay Today:
An"one #0o 0as &nveste% &n e!a" sto15 over t0e *ast $e# "ears probab*"
5no#s t0at e!a"?s pos&t&on &n t0e ;nternet mar5etp*a1e &s rap&%*" 10an+&n+
.
;n
re1ent 3arters, 0o#ever, t0&n+s 0ave s*o#e% %o#n a *&tt*e. Oarter*" "ear over
"ear +ro#t0 &s no# at Cst over 70 per1ent an% s0o#s a %o#n#ar% tren%Pst&**
e@1e**ent, bt not 3&te as stratosp0er&1. Some o$ t0&s &s %e to &n1reas&n+
1ompet&t&on $rom e!a" 1ompet&tors, &n1*%&n+ :oo+*e (#or*%#&%e bt espe1&a**"
&n Nort0 Amer&1a an% 2rope) an% a nmber o$ a*ternat&ve a1t&on 0oses a1ross
As&a an% t0e 'a1&$&1 ,&m. ;n some 1&r1*es, peop*e are ta*5&n+ as &$ t0e s*o#&n+ o$
+ro#t0 an% t0e matr&n+ o$ e!a" as a 1ompan" an% sto15 mar5 en% t&mes $or t0e
1ompan". Not so.
;n re1ent "ears e!a" C2( Me+ /0&tman?s strate+" 0as been to 1ont&ne to
stren+t0en e!a"?s 1ore a1t&on bs&ness #0&*e at t0e same t&me to %&vers&$" e!a"?s
bs&ness mo%e* an% 0o*%&n+s as a 0e%+e a+a&nst 1ompet&t&on &n t0e on*&ne a1t&ons
an% e1ommer1e mar5et. 80&s strate+&1 an% mar5ets +ro#t0 0as &n1*%e% a nmber
o$ &nvestments an% a13&s&t&onsPb&+ names t0at to%a" are a*so e!a". >o ma"
0ave 0ear% o$ some o$ t0em
'-ypeP80e #&*%*" pop*ar S5"pe B(;' (vo&1e=over=&nternet=proto1o*) serv&1e &s
e!a"?s *ar+est a13&s&t&on to %ate an% one o$ &ts most re1ent, pr10ase% &n 2005 $or
appro@&mate*" 42.9 b&**&on. /0&tman?s v&s&on $or S5"pe &s as a 1ommn&1at&ons
0b not Cst $or ;nternet 1stomers *oo5&n+ $or a*ternat&ves to tra%&t&ona* te*e1om
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pa15a+es, bt $or e!a" b"ers an% se**ers, #0o #&** eventa**" be ab*e to &ntera1t
se1re*" an% anon"mos*" b" vo&1e. S0e a*so sees a $tre &n #0&10 t0e
$ort01om&n+ S5"pe sbs1r&pt&on 10ar+es #&** be 1*eare% pr&mar&*" t0ro+0 'a"'a*.
PayPalP!" no#, near*" ever"one rea*&Fes t0at 'a"'a* &s no# an e!a" 1ompan",
p&15e% p $or 41.5 b&**&on &n 2002 an% a natra* mat10: t0e vast maCor&t" o$ e!a"
transa1t&ons &nvo*v&n+ on*&ne pa"ments at t0e t&me se% 'a"'a*, an% t0&s rema&ns
t0e state o$ a$$a&rs to%a". 8re to /0&tman?s v&s&on, 'a"'a* 0as a*so +ro#n to
be1ome t0e prem&er pa"ment s"stem $or e1ommer1e a1ross t0e ;nternet, se1on%
on*" to %&re1t 1re%&t 1ar% transa1t&ons an% sa$er as #e**. An &n1reas&n+ nmber o$
enta&*ers an% even br&15=an%=mortar stores a11ept 'a"'a* pa"ments to%a".
CraigslistP;n 200E e!a" pa&% an n%&s1*ose% sm to a13&re a 25 per1ent
&nterest &n Cra&+s*&st be1om&n+ &ts *ar+est s&n+*e s0are0o*%er. 2!a" 0as 5ept a *o#
pro$&*e vis-a-vis &t?s t&es to an% &n$*en1e on Cra&+s*&st, bt #&t0 t0e 1*ass&$&e%
serv&1e?s +ro#t0 +o&n+ t0ro+0 t0e roo$ an% t0e 1*ass&$&e% mar5etp*a1e be1om&n+
more &mportant on*&ne &n +enera*, &nvestors s0o*% see t0&s as a stron+ asset #&t0
b&+ ps&%e potent&a* $or e!a".
&alf$comPHa*$.1om a13&re% b" e!a" &n 2000, represents e!a"?s move &nto t0e
on*&ne se% me%&a mar5et. Ha*$.1om #as a r&s&n+ star &n an% &n man" #a"s t0e
1reator o$ t0&s mar5et #0&10 0as no# been Co&ne% b" t0e *&5es o$ AmaFon.1om
amon+ ot0ers. Ha*$.1om rema&ns a perenn&a* $avor&te amon+st st%ents,
b&b*&op0&*es, +ame ent0s&asts, $&*m b$$s, an% ot0ers &n see5&n+ to b" se%
me%&a pro%1ts at re%1e% 1ost. !e1ase t0ese t"pes o$ pro%1ts are 1ommo%&t"
pr&1e% an% o$ten 0ave a *on+ s0e*$ *&$e be$ore be&n+ pr10ase%, t0e a*ternate sa*e
mo%e* t0at Ha*$.1om represents &s bot0 appropr&ate to &ts mar5et an% %oes not
1ompete %&re1t*" #&t0 e!a"?s 1ore a1t&on o$$er&n+s.
*ent$com, 'hopping$com, ProstoresP/0&*e not as monmenta* &n s1a*e as t0e
a$orement&one% transa1t&ons, e!a" 0as a*so %&vers&$&e% &ts reta&* an% rea* estate
bs&nesses #&t0 ,ent.1om S0opp&n+.1om an% 'ostres #0&10 to+et0er
1omp*ement e!a"?s e@&st&n+ e!a" Motors e!a" ,ea* 2state amon+ ot0ers, &n
reta&* be"on% t0e 1ommo%&t" an% 1onsmer +oo%s mar5et.
;$ to+et0er t0ese a13&s&t&ons pa&nt t0e p&1tre o$ a 1ompan" &n t0e m&%st o$ stea%"
an% 1ont&ne% +ro#t0, t0e" s0o*%Pe!a" rema&ns t0e prem&er on*&ne a1t&ons
an% reta&* spa1e an% &s po&se% to 1ont&ne a*on+ t0&s traCe1tor" $or t0e $oreseeab*e
$tre. 2!a")s maCor t0reat at t0e moment &s :oo+*e a*so rap&%*" e@pan%&n+ an%
enCo"&n+ mar5et=*ea%&n+ +ro#t0. 2!a")s re*at&ons0&p to :oo+*e &s a trob*e% one,
as e!a" re*&es on :oo+*e?s a%vert&s&n+ mo%e* an% mar5et rea10es $or &ts 1ont&ne%
s11ess even as :oo+*e 1ont&nes to enter mar5et n&10es &n #0&10 e!a" pro%1ts
a*rea%" e@&stP$or e@amp*e, 1*ass&$&e% a%s an% on*&ne pa"ments.