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Group III
EBay
Prepared by:
Cacatian, Joanalen M.
Macaspac, Angelica
Reyes, Joperdave
Submitted to:
I. Problem statement
1. With the growing popularity of eBay's Same-Day Delivery Service how can the
company step up against its potential rivals in the form of start-ups ready to compete with
eBay?
2. How can the company resolve the challenges of logistical problems like the
necessity for large scale of operations, costs to the company being high, necessity of
employing couriers/pick-up valets, and the success of such a system being dependent on the
3. Aside from that, faced with this challenges how can the company attain its goal of
aiming to double its active user count to 200 million and expected to report around $21.5 billion
4. Finally, with numerous issues regarding eBay's Same-Day Delivery Service , which
is beneficial for the company to discontinue or continue the Same-Day Delivery Service?
Due to the popularity of eBay's same day delivery, eBay is prone to competitors. It is
easy for other competitors to start up a business and use the same delivery strategy
that the eBay does. Operating a same day delivery is costly and will be needing a lot
of employees to be able to deliver the packages fast and on time. Ebay is aiming a
high revenue and and active users but it is very difficult for them to do that because
there are new competitors arising with the same delivery strategy that the eBay does.
Also, same day delivery risky and double works might happen if wrong things were
The company is a giant matketplace used by more than 100 million people to buy and
Brand value
Ebay is the leading global brand for online auctions. The brand has grown
WEAKNESSES
There is not much any plan on how to sustain the growth of Ebay. So, there is high
Since Ebay is an online business, system breakdowns could disturb the trading
activities of Ebay. It is also hard to overcome fraud like counterfeit goods being sold or
theft.
OPPORTUNITIES
The growing number of online shoppers is a huge growth opportunity not only for eBay
but also for PayPal. Online shoppers found it as an easy and convenient way to shop
online.
New stores moving to eBay
Because of eBays advertising capabilities, wherein they have an easy access or easy
way to reach out their customers, many stores are moving at eBay.
Market Development
China and Europe are wealthy country, there, consumers are becoming richer and
have more leisure time than previous generations. So for eBay to sustain current
growth levels, eBay could expand its market, not only in the two countries stated above
Market Penetration
Western Europe and the USA still have many potential consumers that have yet to
discover the benefits of online auctions. Remember products have life cycles that
eventually come to an end, and such products are ideal for selling and buying on eBay.
THREATS
Competition
markets may have the cultural experience that could give them a competitive
advantage over eBay. Also, Amazons existence along with eBay is a big threat.
Online Security
There will always be a hacker in this type of transaction especially it is online, this will
affect customers mindset whether they should buy and trust eBay or not. As the
technology advances, so does the ability to steal info and encounter a fraud.
When the dollar is appreciating against other currencies, it will affect the profits that
1. How can the company attain its goal of aiming to double its active user count to 200
million and expected to report around $21.5 billion and $23.5 billion in revenue
ADVANTAGE: To attain that 200 million users, eBay must exert a great effort in
introducing its app. America has a great standard of living and their only problem is
what channel they must have and TV commercial is a great way to introduce the app
to the market and the customer just need to be informed efficiently. Radio for the
pedestrian and drivers who dont have time to watch TV shows and get the chance to
be informed by TV commercial and which they also need the convenience that the app
offer. Websites advertisement or the YouTube Advertisement for the Netizen which
they almost use half of their life using these different websites and watching videos in
YouTube. Seminars for the old folks who doesnt find the desire for technology.
revenue.
DISADVANTAGE: The great disadvantage of this action is the great cost that needed
to implement this Publication of the app and the risk if the people will respond and be
convinced to use the app. It can also compromise the expected revenue of the
company because of the cost and maybe the benefit that can be derived from those
2. Which is beneficial for the company, to discontinue or continue the Same-Day Delivery
Service?
A. CONTINUE
ADVANTAGE: In this era of a new generation so called Millennials, a generation who
used internet more frequent than their actual living and this modern lifestyle which all
things are pacing to be instant and fast and convenient transaction is more desirable
opportunity revenue that eBay will gain from the convenience that it offers to the
customer and reduced the negative effect of trade costs. It also gives eBay a great
market segment like the Netizen and using an app can also provide a good marketing
DISADVANTAGE: The disadvantage of this Same- Day Delivery Service is the cost
of informing the customers for its existing and the increase in online Trading Sites the
app will only a be an option to the customers especially the market for e-business is
so tight and rapidly growing where the competition is so high. Where the risk of
introducing a new type of technology which not yet know to the market is high.
B. DISCONTINUE
ADVANTAGE: eBay will save the project cost and still use it for other feasible and
economical project in the future and they can avoid the high risk offered by this project.
They can also avoid future technicalities which can cause a bad effect for the image of
the company like the technology malfunction, technology inconvenience and time lag
DISADVANTAGE: They lose their chance for the market penetration and the chance
to get the potential customers that the app may bring to the company especially the
market in USA where there are millions of internets user where eBay can show them
the benefit of Same-Day Delivery Service app, the convenience of buying and selling
of products.
IV. Recommendation
The e-commerce industry is becoming increasingly competitive. The company is facing
an avalanche of competition from larger retailers like Walmart and Amazon who are
building up dominant e-commerce sales channels. Ebay needs to take drastic actions
Based on the provided statements, our group proposes that Ebay should discontinue
its Same-day delivery service. This project is high risk and is faced with a ton of
logistical hurdles. The Same-day delivery service could potentially provide more value
to customers but its cost to the company would be insurmountable. It would require
the company an enormous amount of investment since Ebay would need to develop
We also propose the use of both modern and conventional types of marketing. Ebay
could use convential marketing techniques like print and media or it can also resort to
modern types of advertising like Social Media marketing and Youtube advertisements.
The company should also improve its smartphone app because more and more people
are doing e-commerce through their phones. This would allow Ebay to reach more of
Also, the company should strengthen its logistical infrastructure by partnering up with
other companies who provide delivery services like FedEx, UPS and DHL. Partnership
with these companies could yield a lot of synergy. It would drastically reduce the costs
related to shipments and would ensure that the company has the proper infrastructure