CASE NO. 30: eBay
I. INTRODUCTION
eBay is an American multinational e-commerce industry that was formed during the
year 1995 and is headquartered in California, United States. eBay
facilitates business to consumer and consumer to consumer sales through their
websites. eBay was formed by Pierre Omidyar during the year 1995 and it has
eventually become a distinguished success story of the dot-com bubble. eBay is
supposed to be a multibillion-dollar business by having their operations in about 30
countries as of the year 2011. eBay manages their website, shopping website, an
online auction where people and businesses buy and sell many goods and services.
The website is provided free for buyers, but the sellers are charged based on listing
items by having a limited number of free listings. eBay is the platform where the
world goes shopping, sell, and give. It works with the mission to be the world’s
favorite destination to discover unique selection and great value. eBay provides the
sellers with the platform, support, and solutions that are required for the businesses
to grow and succeed. The success of eBay is measured by means of customer
success.
II. MISSION AND VISION
EBAY INC.’S MISSION STATEMENT
Based on its mission statement, eBay’s corporate mission is “to provide a global
trading platform where practically anyone can trade practically anything.”
Thus, eBay’s corporate mission statement indicates that the multinational online
auction and retail business is essentially a global trading venue.
EBAY INC.’S VISION STATEMENT
eBay’s corporate vision is “to be the world’s favorite destination for
discovering great value and unique selection.” The company considers this
statement as its corporate mission. However, based on the aforementioned
definitions of corporate vision and mission statements, the company’s supposed
mission statement is technically a corporate vision statement.
III. INTERNAL ASSESSMENT
A. FINANCIAL RATIO ANALYSIS
EBay current ratio for the three months ending September 30, 2021
was 3.35.
EBay long-term debt / capital for the three months ending September 30,
2021 was 0.41.
EBay debt/equity for the three months ending September 30, 2021 was 0.71.
, EBay asset turnover for the three months ending September 30, 2021
was 0.09.
EBay receivable turnover for the three months ending September 30, 2021
was 3.79.
EBay days sales in receivables for the three months ending September 30,
2021 was 23.75.
B. MARKETING STRATEGY
The overall eBay aims are to increase the gross merchandise volume and net
revenues from the eBay marketplace. More detailed objectives are defined to
achieve these aims, with strategies focusing on:
Acquisition – increasing the number of newly registered users on the eBay
marketplace.
Activation – increasing the number of registered users that become active bidders,
buyers or sellers on the eBay marketplace.
Activity – increasing the volume and value of transactions that are conducted by
each active user on the eBay marketplace.
The focus on each of these three areas will vary according to strategic priorities in
particular local markets. eBay marketplace growth was driven by defining
approaches to improve performance in these areas.
First, category growth was achieved by increasing the number and size of
categories within the marketplace, for example Antiques, Art, Books, and Business
and Industrial.
Second, formats for interaction. eBay Stores was developed to enable sellers
with a wider range of products to showcase their products in a more traditional
retail format including the traditional ‘Buy-It-Now’ fixed-price format.
C. MAP LOCATING FIRM’S OPERATION
I. INTRODUCTION
eBay is an American multinational e-commerce industry that was formed during the
year 1995 and is headquartered in California, United States. eBay
facilitates business to consumer and consumer to consumer sales through their
websites. eBay was formed by Pierre Omidyar during the year 1995 and it has
eventually become a distinguished success story of the dot-com bubble. eBay is
supposed to be a multibillion-dollar business by having their operations in about 30
countries as of the year 2011. eBay manages their website, shopping website, an
online auction where people and businesses buy and sell many goods and services.
The website is provided free for buyers, but the sellers are charged based on listing
items by having a limited number of free listings. eBay is the platform where the
world goes shopping, sell, and give. It works with the mission to be the world’s
favorite destination to discover unique selection and great value. eBay provides the
sellers with the platform, support, and solutions that are required for the businesses
to grow and succeed. The success of eBay is measured by means of customer
success.
II. MISSION AND VISION
EBAY INC.’S MISSION STATEMENT
Based on its mission statement, eBay’s corporate mission is “to provide a global
trading platform where practically anyone can trade practically anything.”
Thus, eBay’s corporate mission statement indicates that the multinational online
auction and retail business is essentially a global trading venue.
EBAY INC.’S VISION STATEMENT
eBay’s corporate vision is “to be the world’s favorite destination for
discovering great value and unique selection.” The company considers this
statement as its corporate mission. However, based on the aforementioned
definitions of corporate vision and mission statements, the company’s supposed
mission statement is technically a corporate vision statement.
III. INTERNAL ASSESSMENT
A. FINANCIAL RATIO ANALYSIS
EBay current ratio for the three months ending September 30, 2021
was 3.35.
EBay long-term debt / capital for the three months ending September 30,
2021 was 0.41.
EBay debt/equity for the three months ending September 30, 2021 was 0.71.
, EBay asset turnover for the three months ending September 30, 2021
was 0.09.
EBay receivable turnover for the three months ending September 30, 2021
was 3.79.
EBay days sales in receivables for the three months ending September 30,
2021 was 23.75.
B. MARKETING STRATEGY
The overall eBay aims are to increase the gross merchandise volume and net
revenues from the eBay marketplace. More detailed objectives are defined to
achieve these aims, with strategies focusing on:
Acquisition – increasing the number of newly registered users on the eBay
marketplace.
Activation – increasing the number of registered users that become active bidders,
buyers or sellers on the eBay marketplace.
Activity – increasing the volume and value of transactions that are conducted by
each active user on the eBay marketplace.
The focus on each of these three areas will vary according to strategic priorities in
particular local markets. eBay marketplace growth was driven by defining
approaches to improve performance in these areas.
First, category growth was achieved by increasing the number and size of
categories within the marketplace, for example Antiques, Art, Books, and Business
and Industrial.
Second, formats for interaction. eBay Stores was developed to enable sellers
with a wider range of products to showcase their products in a more traditional
retail format including the traditional ‘Buy-It-Now’ fixed-price format.
C. MAP LOCATING FIRM’S OPERATION
